From Bridging Rural Healthcare Gaps to Accelerating Mental Health Innovations: Insights for Future Health-tech Entrepreneurs
Introduction: As India’s HealthTech sector propels towards unprecedented growth, it encounters a myriad of challenges and opportunities. On Industry Innovators this week, senior journalist Mahima Sharma engages with Tushar Kansal, the Founder of Kansaltancy Ventures, bringing his 22 years of expertise in the realm of investments. A seasoned Venture Capitalist, Tushar addresses the urban-rural healthcare divide; delves into the nuances of the industry and helps us explore the future of HealthTech via the strategic steps required to shape a healthier, tech-driven healthcare ecosystem. Read on…
Mahima: India’s health-tech market is set to skyrocket, projected to reach $25bn by 2025. But still there is a big divide between urban and rural sectors in developing nations like India. How do you think technology can bridge this divide not just in terms of accessibility but also in bringing the costs down?
Tushar: In countries like India, there is a significant difference in the availability of Healthcare between Urban and Rural areas, which is a major problem. This divide is caused by factors such as limited Infrastructure, lack of resources, and a shortage of medical professionals in rural areas. As a result, millions of people in rural areas face significant barriers in accessing quality healthcare.
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I would like to share some examples of how technology can help bridge the divide between urban and rural healthcare, especially in terms of accessibility and cost:
– Telemedicine: Transforming Access
Telemedicine services like e-Sanjeevani have been deployed by the Ministry of Health and Family Welfare at 155,000 health and wellness centers, serving 75,000 patients on a daily basis. This increases remote consultation, real-time vital checks, on-time diagnosis and remote patient monitoring.
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– ePharmacies
The Indian e-pharmacy market, set to grow at a 22% CAGR, is on track to reach $1.1 billion. This sector not only expands healthcare access to remote areas but also offers cost-effective alternatives compared to traditional pharmacies. Enhancing the availability of generic equivalents is a key strategy to mitigate prescription drug costs. According to the FDA, products with six or more generic competitors saw a substantial 95% price reduction. Promoting generic competition emerges as a viable solution in the pursuit of lowering overall drug prices.
Mahima: How can the new Data Protection Act impact the healthcare start-up ecosystem in India? Share the pros and cons, both.
Tushar: The Digital Personal Data Protection Act, of 2023, a pivotal legislation introduced by the Indian Parliament, marks a significant stride in safeguarding personal data. This Act, initiated in August 2023, aims to provide a comprehensive framework for protecting and processing personal data, balancing individual rights with lawful data usage. It extends its jurisdiction to both online and offline digitized data, impacting data processing within India and abroad for services offered in India.
The Act’s implications for the Healthcare Startup ecosystem in India yield both potential benefits and challenges:
Pros:
– Data Security
– Patient Privacy
– Digital Empowerment
Cons:
– Increased Compliance Costs
– Data Leakage Risks
– Interoperability Challenges
By prioritizing data security, patient consent and interoperability, the act aims to create a more transparent and patient-centric healthcare environment. Its impact on Healthcare Startups could lead to enhanced data security measures and patient trust while presenting challenges in terms of compliance costs and data integrity across various platforms.
Mahima: How do you envision the health-tech sector of 2023 and what all steps will need to be taken to realize that vision in India?
Tushar: I see it heading towards a digitized model of service where we can be time efficient, save a lot of manual labor, increase accessibility to regions where healthcare services are in a destitute condition and most of all, reduce operating costs.
NITI Aayog suggests home healthcare could cut hospital visits by 65%, saving 20% in operational costs. Amid a strained medical system, managing the growing population seems daunting.
Envisaging India’s HealthTech sector in 2023 entails progressing toward an interconnected, accessible, and innovative healthcare landscape. This vision requires strategic steps, incorporating data, metrics and examples from Indian HealthTech startups.
– Interoperability and Data Integration
– Telemedicine Penetration and Reach
– AI-Driven Healthcare Solutions
– Focus on Preventive Healthcare
– Shift towards Cautionary Funding and Consolidation
– Omnichannel Approach for Survival and Growth
Practo, a healthcare platform in India, empowers patients with features like scheduling appointments, ordering medications and online consultations. Similarly, Phable streamlines doctor appointments and consultations while partnering with diagnostic centers for home sample collection.
Achieving a visionary 2023 goal requires sustained investment in digital infrastructure, collaborative innovation, data privacy policies and a skilled HealthTech workforce. Learning from success stories of Indian HealthTech startups will play a vital role in shaping the sector’s transformative future.
Mahima: Artificial Intelligence (AI) for Personalized Mental Health – what’s your take on the same? And what cautions must startups take to strike a balance?
Tushar: Artificial Intelligence (AI) holds immense promise for personalized mental health solutions, offering tailored interventions and support. Its potential lies in analyzing vast datasets to understand individual nuances, delivering targeted therapies, and enhancing mental health services. The use of AI in personalized mental health can revolutionize treatment in various ways:
– Personalize Interventions: AI can analyze an individual’s behavioral patterns, preferences, and responses to tailor interventions suiting their specific needs, leading to more effective treatments.
– Predictive Analysis: By processing diverse data sets, AI can forecast potential mental health issues, enabling early intervention and prevention strategies.
– Enhance Accessibility: AI-powered tools like ChatBots or Virtual Therapists provide 24/7 support, making mental health services more accessible and reducing stigma.
The Indian landscape showcases several examples illustrating AI’s integration into mental health solutions:
– TrustCircle: This mobile app harnesses AI, employing Natural Language Processing (NLP) and Machine Learning to evaluate, monitor, and enhance mental health. It generates personalized insights and recommendations for users based on their responses to Psychometric Tests and regular check-ins.
– Wysa: A clinically validated AI support app, Wysa utilizes NLP and machine learning to comprehend users’ emotions. It delivers empathetic responses, coping mechanisms, and self-help tools. Remarkably, Wysa is available in multiple languages, including Hindi, broadening its accessibility.
– MindPeers: This platform connects individuals with mental health professionals and AI-driven chatbots. Employing AI, MindPeers matches users with suitable therapists, counselors, or coaches. Additionally, AI chatbots provide emotional support and guidance.
However, caution is crucial in leveraging AI for mental health:
– Data Privacy and Ethics
– Bias and Accuracy
– Human Oversight and Trust
– Regulatory Compliance
Startups must prioritize user privacy, mitigate biases, maintain human oversight, and comply with ethical guidelines to strike the right balance between technological advancement and ethical, effective mental health support.
Mahima: Co -work spaces, work from home – how can health tech Startups provide healthcare for such employees and make a healthier ecosystem?
Tushar: HealthTech startups can play a pivotal role in fostering a healthier ecosystem for employees in co-working spaces or working-from-home scenarios where access to daily medical support, common in office settings, might be lacking.
I will now share some steps by which HealthTech startups can provide healthcare support and improve well-being in such environments:
- Telemedicine and Virtual Health: Take Bicycle Health, a thriving digital health firm addressing Opioid Use Disorder through virtual treatment. With $30+ million in Series-A funding, a team of 175+, and 8,000+ patients across 23 states, they exemplify growth and impact.
- Mental Health Apps: HealthTech startups can craft apps centered on mental health, stress reduction, and mindfulness.
- Wearable Health Tech: Innovate with wearables tracking vital signs, activity levels, sleep, and stress. Analyze data to offer personalized health recommendations, reminding users to take breaks and practice relaxation.
- Health Webinars: Host virtual health sessions for remote workers, covering lifestyle, ergonomics, exercise, and mental health.
- AI Health Coaches: Employ AI-driven chatbots or coaches for personalized health advice and reminders, optimizing remote work routines.
These Startups are addressing the gap in healthcare services for remote employees by offering affordable, accessible, and confidential treatment that empowers patients to take back control of their lives.
Mahima: As a VC, which are the FOUR Underrepresented Health Tech Areas? And what steps need to be taken to bring them onto the bigger canvas?
Tushar: Navigating HealthTech investments, I go beyond trends, uncovering overlooked opportunities and untapped sectors. Delving into four lesser-explored areas, I explore strategies for genuine innovation and impactful progress. Here are these uncharted territories and strategies to propel them onto a larger platform:
- Bridging the rural healthcare divide involves identifying gaps, implementing telemedicine solutions, and fostering collaborative efforts.
- Empowering mental health tech for marginalized communities requires culturally sensitive solutions, awareness initiatives, and inclusivity in innovation.
- Elevating preventive healthcare technologies focuses on wellness, behavioral change initiatives, and seamless integration with healthcare systems.
- Innovating elderly care and aging solutions entails senior-focused tech support, pilot programs and testing, and strategic collaborations with geriatric care.
In directing attention and investment toward these underrepresented HealthTech domains, venture capitalists can seed innovation and cultivate impactful solutions. By championing ventures targeting these untapped areas, the HealthTech sector can diversify its impact, ensuring equitable access to cutting-edge healthcare solutions for all.
Mahima: Mental Health Tech Startups struggle to get funding. How do you think this sector can be upscaled at a faster rate because good mental health is the base of physical health? Share the steps required.
Tushar: Mental Health Startups in India exhibited promising growth, securing nearly 0.8 billion INR in funding in 2021. Despite this positive trend, the sector faces challenges, notably in funding, with a modest $20 million raised from 2016 to 2020, in contrast to the substantial $556 million invested in the U.S. in 2020 alone.
The pressing need to expedite investment in light of escalating mental health challenges is evident. Emulating the U.S. model, involving employers and insurers, could significantly enhance funding avenues for Indian startups. From 2016 to 2020, these startups saw approximately 1.5 billion INR in funding, indicating a gradual but meaningful growth trajectory.
Several promising mental health startups have emerged in India, showcasing diverse approaches to cater to mental wellness:
– Wysa: An AI-powered mental health chatbot that extends emotional support and provides coping strategies.
– ePsyClinic: Offering online therapy and counseling services, making mental health care accessible to a broader audience.
– InnerHour: Providing personalized mental health programs and self-help tools.
– Mfine: While primarily focused on physical health, Mfine incorporates mental health consultations with qualified professionals.
– YourDOST: An online platform facilitating connections between users and counselors/psychologists.
Various Business models have been adopted by these Startups, including subscription-based services, collaborations with corporations to offer mental health benefits to employees, and freemium models offering basic services for free and charging for advanced features.
Mahima: Lastly, when you step in as a venture capitalist or consultant for the health-tech sector, what precautions need to be taken for the safety of the masses?
Tushar: Venturing into HealthTech as a VC or Consultant mandates prioritizing public safety. Adhering to healthcare regulations, such as HIPAA for Telemedicine investments, is crucial to safeguard patient data. Validation against standards prevents misdiagnoses, ensuring patient well-being. Robust data protection frameworks are fundamental for patient privacy. Educating end-users on tech limitations is vital for informed HealthTech use. Human-centric design, emphasizing accessibility, ensures inclusivity. Planning for emergencies in digital health platforms prevents disruptions. Collaboration with healthcare professionals in platform development aligns with clinical workflows. Companies like Outcome Health exemplify safety, ensuring data privacy, content vetting, and user-friendly platforms. Committed safety measures support responsible HealthTech investment, fostering secure healthcare delivery.
About Tushar Kansal
He is the Founder of Kansaltancy Ventures with over 22 years of experience in the Investments domain. He helps HealthTech companies by means of Venture Capital & Strategic Services, leveraging a Global network of VC Funds & Financial Institutions. Having invested in over 34 HealthTech Companies in multiple countries through a Canadian VC Fund, he also shares his vision with the world via his blog “Indus Churning” that claims to have had 2.6 million hits in 2014. An avid reader and singer at heart, Tushar also is a Speaker of repute having delivered over 300 Talks & Panel discussions.
Image Courtesy: Tushar Kansal and Freepik.com
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