Technology Transformation For Future Ready Healthcare 1676519067
Technology Transformation For Future Ready Healthcare 1676519067
transformation
for future-ready
healthcare
February 2023
Technology
transformation
for future-ready
healthcare
Grant Thornton Bharat and Association of Healthcare
Providers (India) (AHPI) have tried to understand the
healthcare providers’ and practitioners’ perspectives on
leveraging technology across key touchpoints, preferences,
challenges and outlook.
This report is based on a survey of 50+ healthcare leaders
and professionals associated with hospitals of different
sizes, specialities and locations.
06 Executive summary
16 Compliance management:
Leveraging technology
24 Way forward
27 Acknowledgements
Over the years, India has made rapid The pandemic has only accelerated the go towards monitoring and measuring
strides in health parameters such as adoption of technology as we endeavour sentinel events as well as medical errors.
life expectancy, mortality rates and to make healthcare affordable and
immunisation. The Indian healthcare accessible to all. In this report, the Association of
system is currently at a critical juncture, Healthcare Providers (India) and
where it needs to overcome key Hon’ble Prime Minister of India has Grant Thornton Bharat have tried to
healthcare challenges and progress expressed his desire of opening more analyse and understand imminent
towards the path of universal health than 3,000 new hospitals in tier II/III changes pertaining to technology in the
coverage (UHC). cities where the private sector will play healthcare arena. The report is based
a pivotal role in developing patient- on a survey of 50+ healthcare leaders
Significant achievements and progress centric infrastructure, technology and professionals associated with
have been made through a number integration and use of telemedicine hospitals of different sizes, specialties
of initiatives, including the flagship for standardisation of practices. This and presence.
Ayushman Bharat Yojna and Ayushman would lay the foundations for a wider
Bharat Digital Mission (ABDM) to healthcare marketplace with innovative
provide tertiary and secondary care product offerings and encourage
to the underprivileged and promote new market entrants in the wake of
digitalisation. However, with the recent possible newer investment avenues and
pandemic, rising disposable incomes technological advancements. There is a
and lifestyle changes coupled with compelling need to make the way health
population increase, the disease is sought smarter, with greater attention
patterns are changing significantly. to patient safety. More focus should
In today’s time, no industry can Unfortunately, while most of the current Health insurers and other corporate
function without technology and generation tech tools digitise the payers have the power to accelerate
healthcare is no exception. However, reports, they are not designed to ease digitalisation in healthcare. Increased
the level of acceptance and extent of the process for doctors. The tools need integration of insurers, hospitals, and
implementation vary. to be intuitive and enhance ease of claim processors will increase the
accessibility on mobile. Complex tools demand for digitisation of patient health
When patients walk in, there are do not benefit hospitals and will continue records to drive efficiency.
hundreds of data points for doctors to to impede the adoption of technology,
consider, as opposed to a finite number especially considering the lead time for As we move ahead, the development
until a few years ago. Diagnosis is the investment to improve the top line of doctor-friendly solutions would
challenging in a limited period of a few and bottom line. promote technology adoption, and
minutes. At this pace of technological improved healthcare delivery and patient
evolution, we will soon see smart software Smart electronic medical records (EMR) outcomes would follow.
make a smarter diagnosis. While have the potential to be a game-changer
technology cannot replace doctors, in for healthcare. They will also boost
the next 10 years, doctors mandatorily telemedicine as practitioners will be
taking a second opinion from technology able to study patient history while
will be a reality. Effective use and remote-consulting and be better placed
integration of technology can go a long to prescribe treatment. Currently, most
way in aiding healthcare professionals. of the EMR effort is primarily spent on
converting paper into digital format. We
Various reports indicate inefficient need to build smart tools. Digitalisation
communication as a leading reason also needs to be accompanied by a
for preventable patient fatalities. A lot restructuring of the processes and
of time lapses between the diagnostics behavioural change, failing which
tests and report review by the doctors. productivity gains are unlikely.
India’s healthcare system is vast but faces – more than 80% of the respondents said of the survey participants. The growth of
many challenges. The country is home they wanted to enhance their digital and internet penetration and adoption in the
to the best medical talent and has more IT infrastructure spending budget. country is expected to facilitate internet-
than one million doctors and almost two based healthcare solutions, which can
million nurses and midwives – still not However, the primary factor fundamental accelerate the healthcare infrastructure
adequate for the 1.4 billion population. to digitalisation is the availability of creation per capita at a much lower cost
Quality and advanced healthcare technology tools that facilitate the and reach of healthcare services to all,
facilities have a skewed presence in cities, creation of smart hospital infrastructure. especially in rural areas. 5G networks
where only less than one-third of the Investments in the digitalisation of will only advance this initiative. Our
population resides. hospital infrastructure are aimed at survey of hospitals also indicated that
improving patient outcomes, driving 80% are planning to leverage 5G for
For a large and diverse country like India, productivity, undertaking sustainable, better healthcare outcomes in the next
developing accessible and affordable well-governed and profitable operations, 12 months.
healthcare facilities is the biggest and ensuring patient privacy through
challenge, creating an opportunity adequate cybersecurity. Our survey also Our survey also revealed that more than
for private players. On the parameter indicated that healthcare companies 60% of respondents had implemented
of universal health coverage, which need to invest significantly in technology technology tools such as health
involves all people receiving high-quality to address cybersecurity threats and information management system
health services when needed, without data privacy issues. (HIMS), electronic health record (EHR)
experiencing financial hardship, India has and electronic medical record (EMR),
progressed in the last three decades – the Digital transformation in the healthcare indicating the intent to move towards a
UHC index value has increased from 27 sector is happening at a fast pace and digital ecosystem.
(1990) to 42 (2010) to 61 (2019). has an evident impact. For example,
specialist doctor consultations are now From the physician, payer and provider
India has successfully embraced the available in lower-tier cities and rural perspective, adoption of EMR is likely to
digital mindset in the last decade and areas in India – something unthinkable reduce medical error incidences
adopted digital payments and electronic a few years ago. Despite the pace and facilitate the effective transfer of
currency. Grant Thornton Bharat and of change, telemedicine revenue still patient records from one service provider
AHPI’s survey also reflects this sentiment accounts for less than 5% for over 75% to another.
6% 84% 10%
40%
8% 16%
52%
22%
8%
2%
< 100 beds 100-500 beds
Chairperson/MD/CEO/Founder CFO
500-1,000 beds > 1,000 beds
CIO COO/Head of Medical Services
Mid-management Other
Location Presence
Metro cities
Tier 1 cities
Tier 2 and
below cities
56% 44%
36%
36%
56%
Multi location
Single location
84%
16%
66%
are not confident that their
technology infrastructure is
sufficient to prevent cyber threats
Yes No
40%
feel their technology infrastructure
can ensure patient data privacy
“
There has been a significant focus on patient data privacy,
and regulators are reviewing the way forward to ensure Data privacy and security are becoming
personal data protection. Many countries have already increasingly important in the healthcare
adopted stringent personal data protection regulations, sector. By implementing strong encryption
such as GDPR, which are also applicable for Indian protocols, a comprehensive privacy
healthcare organisations if they are treating international information management system,
patients who are protected under the relevant regulations. appropriate personnel training and staying
up-to-date with the latest data privacy
To ensure that patient data is secure, while still allowing and security regulations, healthcare
healthcare providers to access it when needed, healthcare organisations can ensure that patient data
organisations must take steps to protect privacy. remains secure.
Jaspreet Singh
Partner
Cyber & IT Risk
Grant Thornton Bharat
Revenue enhancement
06
and cost optimisation
Efficiently run
07
support functions
08 Tele consultation
09 Regulatory compliance
20%
from technology
The data on operational efficiency gain will
only encourage more healthcare players
to view this as a lucrative opportunity
implementation considering a large part of the technology
investment will get paid back by these gains
and resulting revenue maximisation, which
was lacking earlier.
Vipin Gupta
Executive Director
CFO Services
Grant Thornton Bharat
“
Hospitals have multiple sources of revenue, such as in-patient
department (IPD), out-patient department (OPD) and sale Technology can assist healthcare
from pharmacy. Leveraging customised enterprise resource organisations in streamlining and optimising
planning (ERP) software to generate invoices for various various day-to-day operations and
sources of income increases operational efficiency at the complying with statutory requirements.
time of billing. HIS as an ERP to generate invoices for IPD and Technology is also enabling availability of
OPD patients, integrated with different departments, makes requisite data for timely completion of tax
the information centrally available at the time of generating compliances, including e-invoicing, wherever
the final invoice. applicable. Though the use of technology
can simplify various tax compliances, regular
monitoring along with timely updation of
various software is necessary to embrace
regular changes made by the government.
Karan Kakkar
Partner
Tax
Grant Thornton Bharat
Implementation of software developed Under the recent amendments, Large healthcare organisations have a
by the Application Service Provider (ASP) GST is applicable at the rate of high volume of transactions which are
and GST Suvidha Provider (GSP) has 5% on provision of a non-ICU room impacted by the introduction of section
helped organisations to minimise manual by a clinical establishment having 194R under the income tax law. Tech
efforts for GST compliance and has charges exceeding INR 5,000 per tools and software can help the tax
simplified filing of regular GST returns. day to a person receiving healthcare teams at hospitals to keep a check on
Further, integration of such software with services. Such amendments have such compliances and ensure required
ERPs can help generate e-invoices and led to substantial changes, ranging deduction as per the section.
e-way bills directly from own ERPs. Such from documentation requirements to
software can also be used to prepare reporting in GST returns. Technological
various reconciliations for day-to-day intervention can aid in proactive
tax compliances and to respond to implementation of such amendments.
communications from tax authorities.
Technology has huge potential to reduce manual efforts; however, the dynamic nature of the tax laws requires constant
monitoring and updating of tools and software to remain compliant.
The pandemic has accelerated the adoption of telemedicine. Share of revenue from
Various healthtech players have entered into the space and
multiple hospitals have launched their telemedicine platforms.
telemedicine
However, the share of revenue from telemedicine is still less
than 10% for 98% of the hospitals. 2%
10% 10%
The government has been optimistic on the prospects of
telemedicine, and its free service – eSanjeevani – has witnessed
success. With the doctor-to-nurse ratio per 1,000 people
below the World Health Organisation norm and majority of
healthcare resources concentrated in metros and tier 1 cities,
telemedicine has tremendous potential to improve patient
access to healthcare, especially in rural or remote areas. While
telemedicine will not be the sole driver, wider adoption will be 78%
crucial in India’s bid for achieving universal health coverage.
This is also in line with the government’s priority of leveraging
digital health innovation and solution for the Health Working
Groups as a part of India’s G20 Presidency.
28%
The Indian healthcare ecosystem is characterised by high out-of-
pocket expenditure (OOPE). While the OOPE as a share of total
health expenditure declined from 64.2% in 2013-14 to 48.2% in
2018-19, harnessing digital capabilities can allow the sector to enrolled on the
expand its outreach and offerings at a scale that is accessible and
affordable for all.
Ayushman Bharat
Digital Mission
ABDM aims to develop an integrated digital health infrastructure
to bridge the gaps in the ecosystem. To achieve mission objectives,
platform
it is important to address some of the challenges and accelerate
stakeholder enrollment.
Challenges in enrollment
Tech implementation/
62%
integration challenge
Regulatory 38%
scrutiny
Cyber
26%
threat
The transition towards smart and connected hospital is not far behind,
with technology tools, equipment and devices, and digital solutions
becoming increasingly available both within and outside India. We
believe the attractive healthcare market conditions, economies of
scale along with fair competition will drive this trend. The convergence
of various healthcare service providers and healthcare insurance
service providers using technology platforms will increase the
insurance penetration amongst the population, ensure the availability
of insurance plans at an attractive premium and facilitate efficient
settlement of patient’s medical claims.
AHPI represents the vast majority AHPI undertakes advocacy for AHPI in a short period of time has
of healthcare providers in India. It healthcare reforms, infrastructural become the esteemed organisation in the
is registered under Indian Society issues, taxation and tariff issues, healthcare industry comprising of about
Registration ACT- 1860 as “not for health insurance concerning matters 10,000 hospitals as its members.
profit” organization. It educates to and any other difficulties face by the
its members and at the same time, healthcare organisations or community AHPI aims at integrating healthcare
advocates with the government, for healthcare delivery or obtaining providers to work jointly with the
regulatory bodies and other stake healthcare services with equity. The stakeholders including government and
holders on issues, which have bearing AHPI Institute of Healthcare Quality society for well being of common man
on enabling its member organizations develops and conduct various healthcare and build healthy India. To make this
in delivering of Universal Healthcare management courses focusing on task easier we have divided the work
Services to the community at large. patient safety and healthcare quality, and created empowered teams at the
whereas AHPI Healthcare Certification state level. Maharashtra, Karnataka,
AHPI’s vision is to have healthy India, Centre an another subsidiary body of Tamil Nadu, Gujarat, Delhi NCR,
encompassing society, community and AHPI develops standards for different Jharkhand, Andhra Pradesh, Telangana,
common man at grass root. categories of healthcare establishments, Rajasthan, Punjab, Kerala, Odisha, North
certification of compliance of various East, MP and West Bengal now have
AHPI works with all stake holders in AHPI chapters.
standards by the healthcare agencies
establishing a national system where,
and customised certified training
common man can avail assured
programs and training (QMS and
universal access to basic health
healthcare managerial training) for the
services. The Federation facilitates its
industry. AHPI also provides information
members and partnering bodies, in
assistance to its member organization on
carrying out healthcare improvements
various problematic issues face by the
to serve the community effectively
client members.
and efficiently.