StartupTalky

Tag: Healthcare Sector

  • How Fintech is Making Indian Healthcare More Accessible and Affordable for the Next Decade

    This article has been contributed by Mr Jitin Bhasin – CEO and Co-founder of SaveIN.

    As we move forward, the intersection of healthcare and financial technology (fintech) is poised to play a pivotal role in shaping the future. “If timely and quality healthcare can be made accessible to everyone, our country will have truly evolved.” This belief underscores the crucial role of healthcare in India’s path to becoming a developed economy by 2047, marking 100 years of independence.

    India’s Growth and the Healthcare Sector

    Currently, India is the fifth-largest economy globally, boasting a GDP of over $3.5 trillion. The nation is on a robust growth trajectory, setting benchmarks across various sectors. However, to achieve developed nation status, the healthcare sector must undergo a significant transformation.

    With a healthcare market valued at around $372 billion, the government has initiated numerous programs to bolster this sector. Initiatives like the Pradhan Mantri Swasthya Suraksha Yojana, National Health Mission, and the Ayushman Bharat Health Infrastructure Mission are key in fostering sustainable partnerships between the public and private sectors. These efforts aim to make healthcare both affordable and accessible.

    India’s recent strides in digitalization have propelled it ahead of other emerging economies. The country’s efficient handling of the COVID-19 pandemic, built on a solid digital infrastructure, exemplifies its ability to execute at scale. The next wave of healthcare disruption must also be rooted in the principles of transparency, efficiency, and accessibility through digital means.

    Challenges and Opportunities in Healthcare

    Indian Digital Health Market
    Indian Digital Health Market

    Today, India’s healthcare sector faces three primary challenges: accessibility, quality, and affordability. While many salaried workers benefit from government schemes such as the Employee State Insurance (ESI) and Central Government Health Scheme (CGHS), the public healthcare infrastructure struggles to meet rising demand. This gap presents an opportunity for increased public-private collaboration.

    Despite the presence of over two million healthcare providers across the country, affordability remains a critical hurdle. While insurance penetration is expected to rise over the next decade, many medical procedures, especially elective and outpatient treatments—which account for nearly 50% of medical expenses—are not covered by insurance. These treatments remain outside the scope of insurance due to a lack of data and standardization, making it difficult to price insurance products effectively.

    For inpatient procedures where insurance is more common, patients often face insufficient coverage, delays in approval, or are required to pay out of pocket before receiving reimbursement, which can take months. To increase insurance penetration and improve healthcare affordability, these issues need to be addressed.

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    The Role of Fintech in Bridging the Healthcare Gap

    This is where fintech, particularly embedded finance, can play a transformative role. By providing on-demand credit at the point of care, embedded finance can bridge the affordability gap in private healthcare. Similar to how the consumer electronics and smartphone sectors have evolved, offering financing options for healthcare can create a revolution in the industry.

    Embedded finance (EmFi) allows healthcare providers to partner with lenders, enabling patients to pay for medical services using pre-approved credit lines. These credit lines can be repaid through easy, interest-free installments. This model benefits both providers, who can serve more patients, and recipients, who can access timely medical care without financial strain.

    As more healthcare facilities adopt these simplified payment solutions, the demand for such services will likely increase, encouraging people to prioritize their health. A healthier population can lead to improved productivity, contributing to national GDP growth and creating a positive economic cycle.

    Over time, data from Electronic Medical Records (EMRs), treatment patterns, and demographic information will help standardize and streamline healthcare services, leading to greater efficiency across the board.

    Financing Health: The Role of Fintech Companies

    Fintech companies, along with the private sector, are uniquely positioned to address the affordability issues in Indian healthcare. By leveraging cutting-edge digital technologies, risk-based underwriting, and innovative product structures, they can offer solutions that cater to both patients and providers.

    The fusion of healthcare and finance holds immense potential, and the process of consumerizing healthcare has already begun. The timing is perfect, as the importance of health has never been more paramount to society. With clear roles for providers, patients, and financial facilitators, the coming decade promises to bring about significant advancements in personal healthcare.

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  • Kenko Shuts Operations as It Runs Out of Funds

    According to a media report, Redkenko Health Tech Private Limited, more commonly known as Kenko Health, has ceased operations due to financial and operational issues.

    Peak XV Partners, Orios Venture Partners, and Beenext were among the important investors who contributed about $13.7 million to the healthcare business based in Mumbai, which had an initial valuation of almost $60 million. The company’s demise was caused by a lack of capital, a difficult business climate, and the inability to obtain an insurance license, even though it had been steadily growing since 2019 and had the support of notable investors.

    Around 100 employees working in the company are experiencing distress due to outstanding dues, some of which date back over three months, as a result of the closure of the company’s offices in Bengaluru and Mumbai.

    Breaking the Sad News Among the Workforce

    Founders Aniruddha Sen and Dhiraj Goel confessed in a string of emails in July and August to staff that the company had “run out of funds” and was subsequently taken to the National Company Law Tribunal (NCLT) by investors.

    “Our inability to inject equity capital in a timely manner was caused by a number of internal factors, and as a result, the company has exhausted its funding.” In a message to staff, Sen informed them that a debt fund that had been loaned to the company had taken it to the NCLT.

    The owners addressed the dissatisfied employees’ complaints over unpaid dues and a lack of communication in a second email.

    A long time ago, the company’s money ran out, and since then, it has been unable to settle employee F&Fs. According to their post, “This is disappointing but also the harsh reality,” and they revealed that they used about INR 9 crore of their own money to pay salaries from October to December 2023. “But that wasn’t sufficient,” they stated.

    According to the founders, the majority of employees had either found new employment or were actively exploring new prospects. They extended support whenever they could.

    Despite Strong Efforts, Unable to Secure Fresh Funding

    The creators stated that they had hoped for a settlement and were seeking investor or third-party finance to remain afloat, but that it never came to reality.

    “While we worked to resolve the continuing challenge, we were unable to connect with you or ask for any additional time extensions. Although it is disappointing that things did not work out, the company is proud of its roots and the progress it has made since its inception,” stated the founders.

    In response to accusations of wrongdoing, the founders stated that the assertions were motivated more by disappointment and anguish than malicious intent.

    Some troubling claims have been made regarding transferring and similar practices. They invited employees to examine the topic further and made it clear that these were reflections of genuine sadness and distress, not malicious intent.

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  • Budget 2024: Adding More Muscle to the Technology Sector

    The central government’s goal of boosting India’s employability through comprehensive training, skilling, and reskilling was reaffirmed in the Union Budget 24-25, which was delivered by Finance Minister Nirmala Sitharaman. The employment situation for frontline workers in India is expected to improve as a result of the plan to increase domestic tourism, which is expected to generate numerous job possibilities for local workers.

    The Budget also highlighted the importance of working together to elevate women, youth, farmers, and underprivileged workers. This aligns with our shared goal of enhancing the dignity and well-being of these diverse groups, who are steadfastly propelling India’s economic growth. To further guarantee that women workers have access to medical and healthcare facilities, the Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) should be extended to all ASHA and Anganwadi workers.

    It was fascinating to learn about how India’s tech stack has grown into a strong example for the rest of the globe to follow and how tech-first firms like ours are solving problems for markets throughout the world through innovation.

    While we await more specific policies to expand gig workers‘ social security and formalise the workforce, business owners and executives in the sector must now engage in transparent communication with lawmakers to craft policies that benefit both employers and independent contractors.

    Elaborating further on the recently concluded Budget 2024, Sumit Singh, CEO and Co-Founder of DashLoc, stated, “The budget has clearly exhibited that the government is extending full-fledged support towards adoption of technology across sectors. The special mention of deep-tech in the defence section gained in the speech truly indicates that the government is going to support emerging technologies in crucial sectors, too. Alongside, it is a matter of pride that STEM courses have seen aggressive enrolment from women. We can expect a quality and skilled workforce in India that will keep the wheel running towards striking progress.”

    Echoing similar sentiments, Devan Gupta, Co-Founder and Partner, Cretum Advisory commented, “In this budget, the tax slab remains unchanged for the common man, ensuring no taxes are applicable on income up to Rs 7 Lakhs under the default “New Tax Regime.” The government’s focus is on simplifying business processes, and they have withdrawn outstanding direct tax demands, including INR 25,000 for FY 2009-10 and Rs 10,000 for FY 2010-11 to 2014-15. Additionally, there is a relaxation in TCS on foreign remittances under the LRS scheme, with the TCS rate reduced from 20% to 5% and no TCS imposed on expenses up to Rs 7 Lakhs. The issue surrounding the optional nature of Input Service Distributor (ISD) and cross-charging, previously resolved by a government circular allowing companies to choose whether to adopt ISD, has been reignited due to a new government proposal mandating the use of ISD. This change means companies will now face an increased compliance burden, as they will be required to register for ISD and additionally determine situations where cross-charge invoices need to be issued between branches that share the same PAN but have different GSTN numbers.”

    “We commend the government’s focus on tech-driven progress in the 2024 budget. The unveiling of a new scheme dedicated to bolstering deep-tech technologies for defence purposes is a testament to the commitment towards fostering self-reliance (‘Atmanirbharta’). This forward-looking initiative aligns seamlessly with the government’s visionary ‘Viksit Kaal’ objective. With the emphasis on ‘Aatmanirbhar Bharat‘, this scheme will be pivotal for the growth and resilience of our nation’s defence sector in areas such as AI, Quantum, Analytics, and more. We are committed to supporting India’s self-reliance vision and are actively engaged with the local industry and academia to build trusted high-tech capabilities in-country. We are optimistic that together we are poised to propel India’s journey towards becoming a formidable force in defence manufacturing and exports on the global stage,” stated Ashish Saraf, VP and Country Director, Thales

    Budget 2024 on HRA, Income Tax, Tax Slabs and ITR
    Budget 2024 on the Healthcare Sector

    Budget 2024 on HRA, Income Tax, Tax Slabs and ITR

    As predicted, Union Finance Minister Nirmala Sitharaman has suggested keeping the current tax rates for import tariffs, direct taxes, and indirect taxes in the year of the 2024 General Elections. She stated in her address on Budget 2024, “In keeping with convention, I do not propose to make any changes relating to taxation and propose to retain the same tax rates for direct and indirect taxes, including import duties.”

    “However, certain tax benefits to startups and investments made by sovereign wealth or pension funds, as also tax exemption on certain income of some IFSC units, are expiring on March 31, 2024; to provide continuity, I propose to extend the date to March 31, 2025,” according to her.

    Reacting to the announcement, Mahesh Krishnamoorthy, Managing Director of Core Integra, stated, “The presented budget is indeed an interim one, prompting anticipation for the formal budget scheduled to be unveiled by the new Government in July 2024. It is heartening to observe the strides India has taken over the past decade. The Government’s continued commitment, as outlined in the budget, towards fostering ease of doing business, skill development, employment generation, and strengthening the entrepreneurship and startup ecosystem is commendable. In a positive development, the budget overview remains rational and aligned with the ongoing initiatives, even in the backdrop of it being an election year. The forthcoming annual budget later this year will unveil whether the new Government opts to maintain the current interim budget structure or introduces new measures, particularly concerning the implementation of the New Wage Code.”

    “The 2024 interim budget has brought positive developments by extending tax benefits to startups, sovereign funds, pension funds and some IFSC units till March 2025. We expect the July budget to build on these initiatives and continue to foster growth prospects for BFSI and startups in the country. Aligning the GST input credit for NBFCs to 100% at par with other entities can boost the growth of NBFCs. Policies that improve credit access for lower-income groups and first-time borrowers would be warmly received. Following the RBI’s call for diversification of funding channels beyond traditional banks, policies encouraging NBFCs to explore obtaining credit from international agencies or the government would expand their financing options. The ongoing support for startups through tailored fiscal policies, tax benefits, and easier credit access will further stimulate entrepreneurship, innovation, and employment generation,” Sashank Rishyasringa, Co-founder of Axio, opined.

    Budget 2024 on the Healthcare Sector

    Interim Budget 2024
    Interim Budget 2024

    Along with the 157 newly established medical colleges, the Union Budget 2023 included the announcement of new nursing institutions. In addition, Sitharaman has pledged to examine seven crore individuals in an effort to eradicate sickle cell anaemia by the year 2047. In addition to presenting the budget, she also stated that certain ICMR labs will be available for research to academics from public and private medical colleges as well as the business sector.

    Encouraging these moves, Dr Neerja Agarwal, Psychologist and Co-founder of Emoneeds (Mental & Health Wellness), said, “While the interim budget lacked specific policies or initiatives for the mental health sector, we remain optimistic that post-election, the full budget will address this critical area. With approximately 150 million Indians requiring mental health care services and a stark shortage of professionals – only 0.3 psychiatrists, 0.07 psychologists, and 0.07 social workers per 100,000 people – the need is urgent. On a positive note, we commend the government’s commitment to other health initiatives, including the extension of Ayushman Bharat, consolidation of maternal and child healthcare schemes, and the remarkable 1-lakh crore corpus for private sector R&D. These efforts reflect a commendable focus on the nation’s well-being, growth and innovation.”

    With a focus on health sector research and workforce development for budget 2023–24, the push for R&D opened the door to more advanced medical practices; now, public and private organisations can work together to educate and train healthcare workers, which will help alleviate shortages in the workforce and boost healthcare quality generally.

    “The increased allocation of resources and funds is up by 13-28% from the last budget, opening the door for more innovation, especially when it is concerned with minimally-invasive, highly result-oriented fat removal procedures, i.e., 4D liposuction or when things are centrally focussed on skin rejuvenation, LHR (laser hair removal), or postpartum surgeries, including breast surgeries, abdominoplasty, and cosmetic gynaecology. We hope that in the future, we explore the option to access cosmetic surgeries, availing the facilities with insurance easily and associated financial assistance to the masses prohibited from costlier medical or cosmetic procedures,” said Dr. Karishma Kagodu, Founder of Karishma Aesthetics.

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  • India’s Digital Personal Data Protection Act, 2023: A Landmark for Digital Privacy

    India’s new Digital Personal Data Protection Act, 2023, applies to any organization or business involved in the collection or management of personal data. The Act doesn’t only cover data handling within India; it also has authority over data processing that occurs outside India.

    India’s rapidly evolving tech landscape has achieved a significant milestone with the introduction and subsequent passage of the Digital Personal Data Protection (DPDP) Bill in 2022. This pivotal legislation gained approval from the Union Cabinet on July 5 and was presented during the Monsoon Session of Parliament, which commenced on July 20, 2023. It swiftly moved through the legislative process, earning approval in both the lower house (Lok Sabha) on August 7 and the upper house (Rajya Sabha) on August 9.

    With the President’s official assent granted on August 11, 2023, as indicated in the Government of India’s Gazette notification, the Digital Personal Data Protection Bill of 2022 officially transitioned into the Digital Personal Data Protection Act of 2023.

    The reach of the Digital Personal Data Protection Act, of 2023, extends beyond India’s borders, encompassing the processing of digital personal data even when conducted abroad.

    Mr. Rajarshi Bhattacharyya, Chairman and Managing Director of ProcessIT Global, compared the Act with the existing General Data Protection Regulation (GDPR) of the European Union (EU). He said, “It is more advanced because GDPR came out some time ago. This policy is more advanced and comprehensive, which will further India’s progress.”

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    As per a collaborative report from the industry organization IAMAI and the market data analytics company Kantar, known as the ‘Internet in India Report 2022,’ it was revealed that over half of India’s population, amounting to 759 million individuals, actively used the internet, accessing it at least once a month during 2022. The report also highlights that out of these active users, 399 million reside in rural India, surpassing the 360 million users in urban areas. This suggests that internet expansion in the country is primarily being propelled by rural India.

    New Data Protection Act Emphasizes Ethical AI and Global Reach
    Obligations for Entities
    Your Rights and Duties Regarding Your Personal Data
    Healthcare Sector Braces for Impact

    New Data Protection Act Emphasizes Ethical AI and Global Reach

    Deepika Loganathan, CEO, of HaiVE, said, “We are delighted to welcome the enactment of the Digital Personal Data Protection Act, 2023 (DPDPA-2023) by the Parliament of India. This landmark legislation aligns perfectly with our longstanding commitment to ethical AI and data protection. We are pleased to announce that our existing framework for on-premises AI solutions already adheres closely to the seven principles and obligations outlined in the Act.”

    The Act applies to any organization or business involved in the collection or management of personal data. It categorizes these organizations into two groups: those that determine the reasons and methods for processing (referred to as Data Fiduciaries) and those that carry out the processing based on the instructions of the Data Fiduciaries (referred to as Data Processors).

    The Act doesn’t only cover data handling within India; it also has authority over data processing that occurs outside India, particularly concerning goods and services offered to individuals in India. This means that any businesses offering goods or services to Indian residents, regardless of their physical location, would fall under its jurisdiction.

    Mr. Nageen Kommu, CEO, of Digitap, said, “At Digitap, we consider ourselves data processors. We don’t store data; we process it on behalf of our clients, who are the data fiduciaries. While there may not be specific guidelines for data processors, we voluntarily adopt the same policies and procedures that data fiduciaries follow. If a customer wishes to revoke consent, we ensure that the data is deleted, complying with the Act’s requirements.”

    He also mentioned that the act also addresses data security during storage and transmission and Digitap already has robust security mechanisms in place, as they deal with RBI’s outsourcing norms, which mandate data localization within India.

    Obligations for Entities

    The Act outlines several obligations that entities must adhere to when it comes to handling personal data. Some of the key responsibilities include:

    1. Informing individuals before collecting their personal data, specifying what data will be collected, the purposes for which it will be used, and the rights individuals have.
    2. Obtaining consent or relying on legitimate reasons when necessary.
    3. Collecting only the personal data required for the stated purpose.
    4. Keeping personal data only as long as needed for the intended purpose and deleting it afterward.
    5. Establishing a mechanism for addressing grievances and concerns raised by individuals.
    6. Implementing appropriate technical and organizational security measures.
    7. Notifying the Data Protection Board and affected individuals in case of a personal data breach.
    8. Seeking parental or guardian consent and refraining from activities like behavioral monitoring, tracking, or processing that could harm children or individuals with disabilities.
    9. Limiting the transfer of personal data outside India to specified territories.
    10. Conducting data protection impact assessments, periodic data audits, and appointing a Data Protection Officer and auditors for Significant Data Fiduciaries.
    11. Complying with requirements regarding the cross-border transfer of personal data and seeking applicable exemptions.

    To further align with the obligations of the Digital Personal Data Protection Act, of 2023, Loganathan stated that HaiVE is in the process of fine-tuning the company policies and processes. “We are developing a Digital Personal Data Protection Act, 2023, compliance framework that will serve as a comprehensive guide for our team and our clients. This framework will automatically apply to all our future engagements in India, ensuring seamless compliance with the Act’s provisions,” she added.

    Your Rights and Duties Regarding Your Personal Data

    Individuals have been granted specific rights under the law concerning how their personal data is handled. These rights encompass:

    • Right to Access: Individuals have the right to be informed if their personal data is being processed. They can request a summary of the data being processed, details about processing activities (like its use for targeted advertising), the identities of entities with whom their data has been shared (such as processors or third parties), and the types of data shared.
    • Right to Correction & Erasure: Individuals possess the right to have inaccurate or misleading data corrected, incomplete data completed, and their personal data updated, particularly when this data is shared with other entities or used for decision-making. They can also request the deletion of their personal data (or withdraw consent if consent is the basis), although entities may retain it if required for legal compliance.
    • Right to Grievance Redressal & Nomination: The Act introduces a grievance redressal mechanism allowing individuals to file complaints with entities regarding compliance with the Act. Entities must respond within a specified time frame. If dissatisfied with the response, individuals can escalate the matter to the Data Protection Board. Moreover, individuals can nominate someone to exercise their rights concerning personal data in case of their incapacitation or demise.
    • Duties: The Act also outlines certain responsibilities for individuals, such as providing accurate information, refraining from impersonation, withholding material information, or submitting false complaints to the Data Protection Board.

    Bills and Acts: Digital Personal Data Protection Act, 2023 | 19 August, 2023

    Healthcare Sector Braces for Impact

    Kapil Kumar, Chief Technology Officer- Medical Informatics, Artemis Hospitals Gurugram has raised concerns about its implications in the healthcare sector. He said, “Due to the growing uptake of digital health technologies like electronic health records and telemedicine, the Digital Personal Data Protection Act, 2023 will have a significant impact on the healthcare sector.”

    According to Mr. Kumar, this measure aims to regulate the collection, storage, and distribution of sensitive patient data, thereby safeguarding individuals’ privacy rights. He also referenced previous incidents that underscore its significance. For instance, in 2019, there was an unauthorized access breach that compromised the health records of nearly 6.8 million patients and doctors. Similarly, in 2021, a breach of Indian government websites exposed the COVID-19 lab results of over 1,500 residents. In Kerala, personal information from more than 200,000 patients was inadvertently disclosed. This regulation emerges as a champion of data privacy in the healthcare sector.

    The Act is significantly distinct from the existing law, which offers limited protection, mainly in cases of security breaches, and only for specific types of data (sensitive personal data). In contrast, the Act offers extensive safeguards for personal data by imposing responsibilities and granting individuals greater control and awareness over their personal information.

    While the Act unquestionably marks a substantial advancement in safeguarding individuals’ digital rights, the Data Protection Board’s subsequent rulemaking and advocacy efforts will play a crucial role in not only reinforcing these rights but also establishing a structured framework for data processing.