'Future-Ready or Fall Behind: The imperative of embracing digital healthcare is must'

Satish Kannan, Co-founder and CEO, MediBuddy spoke to ETHealthworld's Prathiba Raju about the comprehensive and varied approach and the unique 'flywheel effect', continually attracting both customers and healthcare providers to their digital platform. Kannan highlights how digital platforms can help traditional businesses adapt to the digital age, and the significance of transparency, data utilisation, and the balance between digital and traditional models in shaping the future of healthcare.

As you are a digital healthcare platform, how have you evolved and adapted to the dynamics of the healthcare business, especially post-COVID when digital platforms are often seen as threats to traditional non-platform businesses? Are you seeing any changes in the market now compared to the peak during the pandemic?

In every industry, a new entrant can cause disruption. For a digital platform like MediBuddy, the focus is on the customer or patient first, not the doctor or hospital. If customers prefer digital, they'll choose it; same with physical. Over time, digital platforms have provided better quality and more information. In offline settings, information is often lacking. For instance, Flipkart allows customers to see product ratings and reviews, empowering them to make informed choices without pressure. This approach is also seen with other online platforms like Swiggy, Instamart, and MakeMyTrip.

Traditional healthcare companies haven't typically disclosed prices or provided ratings and reviews, focusing elsewhere in the process. We, however, prioritise transparency—showing prices, ratings, and reviews—allowing customers to make informed decisions. This is why more customers are choosing us, similar to how they choose online ticket booking platforms.

Digital disruption is inevitable across industries. For example, e-commerce ticketing became significant replacing travel agents. By 2009-2010, e-commerce giants started changing the landscape further. Digital platforms greatly benefit customers by providing accurate information, competitive prices, ratings, reviews, booking convenience, and customer support. Accountability is the power of a digital platform. In contrast, when you visit a hospital directly, you have little control. However, if you book through MediBuddy, you can leverage the platform's support if something goes wrong. Our goal is to enhance healthcare through the power of digital innovation.

So, are you challenging traditional businesses or helping them adapt to the digital age?

No, what a digital platform like ours is doing is helping them go digital. Many traditional businesses can't invest heavily in technology because it's not in their DNA. By joining our platform, they gain more visibility and customers. For instance, if a hotel isn't on Google, do you think it’s real? Today's 25 to 40-year-olds are digital-first—they check online before making decisions.

We tell hospitals and diagnostic centres that they may not be able to invest in software, cloud, data privacy, and regulations. Just list in our platform, and we will help customers find them. MediBuddy doesn't own hospitals, pharmacies, or businesses, but helps get more customers to the hospitals and diagnostic centres and clinics. Listing on a technology platform increases visibility.

Before COVID, doctors resisted going digital. I explained that their patients come from a 5-10 kilometre radius. By going digital, they can attract patients from 50 kilometres away or more. For example, someone in Uttar Pradesh might prefer a doctor in Delhi over a local one due to trust issues. Traditional companies need to embrace digital to be future-ready. Without it, they'll be left behind and miss out on expanding their customer base, especially in a vast country like India where current reach might be limited to a small radius.

What sets MediBuddy apart from other digital healthcare platforms, and why do you think hospitals choose to work with you over your competitors?

So a couple of things. First, we are the only platform which is truly end-to-end. End to end means you can do an online consultation, you can do and book an offline appointment in a hospital. Ours is also the only platform which has 350 plus clinics which means we have the ability to cover the entire spectrum of healthcare needs, both online and offline, sets us apart from the competition. We help right from the medicine delivery, lab test, to admission to the hospital. Many of the other guys for example you take 1mg or whatever they do pharmacy, but they don't do so much online doctors, they don't do offline doctor, they won't get you admitted in the hospital.

We cater to both small towns and big cities, including a significant number of corporate and insurance clients. This broad customer base ensures a steady flow of orders, even if other platforms struggle with marketing. With nearly 7,000 hospitals on our platform, we offer extensive options for customers and ensure hospitals get consistent patient flow through both corporate and retail channels. This comprehensive and varied approach drives our unique 'flywheel effect', continually attracting both customers and healthcare providers.

Given the vast range of healthcare providers you support, from small nursing homes to large multispecialty chains, what challenges do you encounter in managing such a diverse ecosystem?

For small-town clinics and smaller providers, we need to offer extensive technology support. Many of them aren’t technology-savvy and require training on how to use online platforms, set up consultations, and understand the benefits of digital integration. We provide them with free software and hands-on assistance to get them online. For larger chains and established hospitals, the focus shifts to API integration with their existing systems. They are already familiar with technology, so our role is more about seamless integration rather than training.

Also, large hospitals typically have robust systems for managing clinical quality and customer experience. In contrast, smaller providers often need additional guidance on these aspects. We help ensure they understand the importance of customer feedback, handle complaints, and manage refunds—practices that might be new to them. While large hospitals are accustomed to high standards and quick resolution of issues, smaller providers may be unfamiliar with these practices. We need to educate and support them on maintaining customer satisfaction and addressing issues effectively. Overall, both large and small providers are enthusiastic about joining our platform, but the approach and level of support differ based on their existing infrastructure and experience.

With extensive patient data, how do you manage and utilise this information? For example, do you track regional health trends or collaborate with government bodies based on this data? Additionally, what protocols and standards do you use to ensure data interoperability and security?

To make healthcare affordable, extensive data use is crucial for accurate predictions and tailored advice. MediBuddy invests heavily in technology, 40 per cent of our budget goes into technology and tools. Personalisation in healthcare is key; unlike mass-produced items, healthcare must be tailored to the individual. Using technology allows us to offer personalised care while keeping costs down.

Just as UPI revolutionised banking and wireless technology transformed telecom, AI and data analytics are essential for providing high-quality, affordable healthcare. By leveraging data for predictions and personalised recommendations, we enhance care quality and efficiency. Unlike traditional hospitals, which focus on physical infrastructure and may not have the capability or inclination to integrate such technology, MediBuddy’s approach reduces costs and improves outcomes through advanced data analytics. This focus on technology and data is integral to our model and essential for the future of healthcare.

What motivated you to develop the recent report on corporate health and wellness, especially considering that 50 per cent of your clientele is corporate? What is the significance of this report, and what benefits can corporates expect from your health plans?

We’re currently serving around 1,000 companies and four million employees through MediBuddy. The creation of the corporate health and wellness report was driven by two major trends post-2020-21 which is the increased importance of health and the 'great resignation' phenomenon. Health became a top priority, and companies faced higher attrition rates, making it crucial to address employee well-being.

Our survey revealed that after salary, health benefits are a key factor for employees when choosing an employer. Companies realised that effective health benefits can help attract and retain talent while enhancing productivity. We observed that large companies are investing significantly in health benefits but were not seeing the desired usage due to mismatches between benefits offered and employees’ needs.

For instance, younger employees prioritise gym memberships, while older employees are more concerned with chronic disease management or retirement planning. Companies were initially providing a one-size-fits-all solution, which didn’t cater to the varying needs of different age groups. Our approach is to provide flexibility within health benefits, allowing employees to choose benefits that suit their specific needs while keeping the overall budget the same. This targeted approach ensures better utilisation of health benefits and aligns with the diverse needs of employees. Mental health is increasingly recognised as a vital component of health benefits. Providing support for mental well-being is essential and growing in importance.

Could you discuss the current trends in digital health platforms and how you ensure your platform remains prominent? Specifically, how are you adapting global trends to the Indian market? Also, how do you tailor your services and packages for direct patients versus corporate clients, and where do you draw inspiration for these offerings?

In India, we often leapfrog traditional models by adopting advanced, cost-effective technologies directly. For instance, while the US relies on credit cards, India has embraced UPI, bypassing the need for physical infrastructure. To stay ahead, we study global healthcare systems like those in the US, the UK, China, and Japan, integrating the best practices while avoiding infrastructure-heavy models.

India’s unique challenges include its vast array of regional languages and low healthcare investment, which is only about 2 per cent of GDP, compared to 16 to 18 per cent in the US. This means we must leverage technology to compensate for the lack of infrastructure investment and cater to diverse regional needs.

Our new investments are focused on areas like mental health, non-communicable diseases (NCDs), diabetes, and women’s health. We’re also open to evaluating acquisitions in these fields to enhance our offerings further. Our core operations are well-established, and we are now concentrating on expanding and deepening our expertise in these critical areas.

Which service category is currently generating the most revenue and traction for MediBuddy in hospitals?

We categorise our revenue into three main areas which is 40 per cent from consultations, 40 per cent from diagnostics, and 20 per cent from medicines. Our primary focus is on consultations because they are the starting point for any healthcare journey. A doctor’s consultation often leads to recommendations for diagnostics or medicines, making consultations a crucial part of our system. This focus ensures a consistent and comprehensive approach to healthcare.

With the Union Health Ministry considering regulations for online pharmacies, what is your stance on this? Do you view these potential regulations as a concern for e-pharmacies? If you could influence the regulatory framework, what specific guidelines or regulations would you advocate for in this area?

A lot of work is already underway regarding e-pharmacy regulations, and guidelines are being discussed. The core issue is understanding the advantages of digital platforms. E-pharmacies offer unparalleled convenience—medicines are delivered to your door, eliminating the need to visit a physical store.

From a tracking perspective, e-pharmacies provide comprehensive records of every transaction. Each order is documented, ensuring traceability and accountability. In contrast, physical pharmacies often lack such detailed records, making it difficult to track transactions or verify prescriptions.

Online platforms also enforce prescription requirements, which are not consistently mandated in offline settings. This means that e-pharmacies can ensure compliance and maintain detailed records of prescriptions. If the government requests information, we can provide precise records of orders, including time, delivery, and logistics details. This level of accountability is typically absent in offline transactions.

How do you see the regulations?

The core issue isn’t the adherence to regulations by e-pharmacies; rather, it’s about the competition between traditional and digital players. The real conflict lies in how business is distributed between online and offline channels, similar to the competition between Big Bazaar and Big Basket.

For customers, e-pharmacies offer significant advantages. They provide better data tracking and control, which translates into better accountability and convenience. While not all e-pharmacies are perfect, their digital nature inherently allows for easier tracking and documentation of transactions compared to traditional pharmacies, where records may not be as meticulously maintained.

Therefore, the government should focus on ensuring regulations that prioritise patient benefits and leverage the advantages of both digital and traditional models. This approach ensures that while businesses compete, the primary focus remains on delivering value and safety to the consumers.