Healthcare

Innovative health model to lower the cost and reach the mass market

Telemedicine is the big frontier that will take the effect of hub and spoke to the next level.
Innovative health model to lower the cost and reach the mass market

The recent innovation in healthcare services has tremendously helping the rural health services being secure. India which has been facing a lot of health issues and problems might get resolved with the coming time innovations.According to a 2012 WHO report, India has 0.7 doctor for every 1000 people.

Even worse are the statistics for government healthcare system on which the majority of our population depends. According to National Health Profile 2015, every government allopathic doctor serves a population of 11,000 people. Every government hospital serves 61,000 people with one bed for 1833 people.

An innovative model that these hospitals follow is a hub-and-spoke model. HCG for example has 17 spokes around major towns which act as patient aggregators, while hubs have specialists with high end equipment—such as an $8 million high-precision, robotic radiosurgery system called the CyberKnife. The model enables HCG to keep the cost low and volumes high.

Any innovation that can lower the cost of treatment for patients is bound to succeed. Take for example the Jaipur Foot. More than 1.2 million Jaipur Feet have been sold till date. Almost all of their customers are people below BPL. They innovated on the material and design to lower the cost to $30-$35. This is an excellent example of using innovation to lower the cost and reach the mass market.

Telemedicine is the other big frontier that will take the effect of hub and spoke to the next level. Connecting the right participants and giving them the right communication tools are the keys. We saw GPs from smaller towns connecting with specialists and super specialists to provide the right treatment to their patients. If a patient needs super specialty treatment, they are referred otherwise provided a treatment in the right direction. The process results in reduced visits, reduced costs, and faster diagnosis for the small town patients. And for the specialist it meant creating a referral network and seeing only patients who need procedural treatments keeping the volume high.
 

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