Kapil khandelwal   (w)health check - health biz india may 2013
Upcoming SlideShare
Loading in...5
×
 

Kapil khandelwal (w)health check - health biz india may 2013

on

  • 449 views

 

Statistics

Views

Total Views
449
Views on SlideShare
421
Embed Views
28

Actions

Likes
0
Downloads
7
Comments
0

3 Embeds 28

http://bukmarker.com 25
http://localhost 2
http://www.bukmarker.com 1

Accessibility

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Kapil khandelwal   (w)health check - health biz india may 2013 Kapil khandelwal (w)health check - health biz india may 2013 Document Transcript

  • Health Biz India May 2013 47Is Big Data Big Businessin Healthcare in India?By: Kapil KhandelwalWith close to 90percent of theworld’s datacreated in the last two years,healthcare industry cannotwatch these developmentsin big-data (see box) on theside lines. The opportunitiesand challenges that big dataprovides health and lifesciences organisations are notunique and there are lessonslearned in other industriesthat can be leveraged as bestpractices. As I look back to therun up to big-data explosion,I have mixed feelings onwhether it will be a bigbusiness in healthcare in India.Here is why.In the pre big-data era,around 2006, I was interfacingwith my client who was theCEO of a large billion-dollarhealthcare analytics arm ofa large payor out of the US.Interestingly, his key businessissue at that point in timewas the monetisation ofterabytes and terabytes lyingon the servers of its companythat contained data on theirconsumer health status andtheir claims history to providebetter service to all thestakeholders in the healthcarevalue chain and use Indiaas a destination for makinghis services cheaper, betterand faster (more relevant) tohis customers in the US andelsewhere.Another larger multi-billion dollar corporationin healthcare solutionscompany has since acquiredthe company, which istrying to solve the healthcareconundrum. Moving to Indiaand fast forwarding a coupleof years ago, I was interactingwith the Chairman of IRDA(Insurance Regulatory andDevelopment Authority)as part of the HealthcareBig business will only come when there is adequate risk capitalcoming to develop this sector(W)health Checkwww.healthbizindia.in
  • Health Biz India May 201348PPP Commission, the issueechoed was same as that ofthe US Healthcare AnalyticsCompany CEO, how do weuse the information sittingon our regulator’s serverson the healthcare claims tomake the insurance productsand services better for theconsumers.Then, we had the big bang,Aadhar, allowing for tappingcitizen information to helpa healthcare organisationunderstand the demographicsbetter. With the 3G andmobile internet, we have seena range of healthcare businessmodels emerge in Indiaaddressing different areasof healthcare delivery to theconsumer. This also includedour 108-type emergencyservices being rolled out indifferent states of India. Lastyear, as Vice Chairman ofthe Personalised Healthcareand Genomics Committeeat FICCI, one of the issuesthat was discussed in frontof me was the enormity andcomplexity of genomics datathat would sit along withthe phenotypic data of thepatients and how it needs tobe made available at the righttime for patient care and otherproviders of wellness services.Over the last year, wehave seen a big hula over‘big data’ and how it is goingto transform the way welive, do business and deliverconsumer products andservices, including healthcare.The transitions to big datain healthcare in India isgraphically depicted hereunder Healthcare Big Data ina Box. The first article in mycolumn discusses the wholeissue about Big Data aroundhealthcare and the hypearound it and whether it islikely to take off in India as abig business.What is Big Data in theIndian context?For the first time in world’sinternet’s history, in December2012, India led the way in themobile internet convergenceover desktop internet andthat is the big data generatorwith over 862 million mobileconnections in the hands ofits people. (see figure). Thecellular network data trafficmore than doubled in 2010and is expected to increase bymore than 13 times to 25,000Petabytes per annum by 2015in India. Never ever seen inIndia’s history!In terms of healthcare, thissector in India contributes lessthan 12 percent of the volumeof data generated in India,however, it is anticipated thatthis opportunity can growto around 25 percent of theoverall data generated by2015.Big data businessopportunitiesThe heat map for bigdata business opportunityin healthcare in India isgraphically summarised inthe graph. Let us look at twokey segments: offshoringbig-data analytical servicesin healthcare to India;and products and servicesdevelopment to captiveaudience in India market.(W)health CheckBig data opportunity in Indiais fairly diverse and consistsof providers, health insurance,researchers, pharma andmedical device R&D, includingclinical trials, consumersand marketers and lastly theGovernment, which wouldbe laggard in the adoptioncurve. It is evident that clinicaldevelopment and pharmaare the two mature sectorsin healthcare leveraging onbig data. Other noteworthysegments that could emergedue to big-data opportunity inIndian healthcare are healthcarefinance, medical education, medtech innovation and discovery,health retail, and wellness
  • Health Biz India May 2013 49(W)health CheckOffshoring big-data inhealthcare services to IndiaOn June 5, 2012, The Centersfor Medicare & MedicaidServices (CMS) announceda new data and informationinitiative to be administeredby the newly created Officeof Information Products andData Analytics (OIPDA). Asa new CMS unit, OIPDA willbe charged with managing theCMS health data portfolio. Aspart of this initiative, OIPDAannounced several new bigdata and information resourcesto be available. This is anopportunity.In its report “Big data:The next big thing”, IndianIT services industry groupNasscom expects the country’sbig data industry to growfrom US$200 million in 2012to US$1 billion in 2015. Thebiggest challenge — andopportunity — is to satisfythe demand for data scientists.India’s competitive advantagein STEM (Science, Technology,Engineering, and Mathematics)Education is clearly givingit a head start over its rivalcountries in the offshoringbusiness. As per McKinsey,US alone would require closeto 200,000 big-data scientistsby 2018 for crunching thebig data in its enterprises.Healthcare alone in the USwould require an additional66,000 biostatisticians, big-data scientists and healthprofessionals to address theopportunity.In healthcare, this big-dataoutsourcing opportunity isgoing to be around US$ 5.6billion by 2018. The emerginghealthcare big-data offshoringservices could include:Healthcare consumerintimacy: Loyalty analytics,customer life time value,propensity analytics,churn analytics, customersegmentation, upsell/cross sell,integrating clinical, purchasing,and behavioural profiles ofconsumers to understanddemand for healthcareproducts and services, howto influence decisions aroundnew product development andways to improve the customerexperience.Insurance and financial riskmanagement: A few healthcarepayors in the US are using bigdata analytics to feed insurancerisk models to underwrite andimprove pricing, fraud andother deviant behaviour by theconsumers. Another area thatbig data is used is in consumerintimacy in selling andretaining them. Profiles. A newhealthcare financing segmentcould emerge that would leadto different and innovativehealthcare financing modelsbased on big data. Anotherarea is fraud prevention anddetection.Individual and populationhealth management: There areearly encouraging signs of bigdata’s nascent but growingimpact on health care. Goingforward, big data technologiesand techniques are expected todrive decision making at theindividual patient, group, andpopulation levels.Improving standardisationand quality of care: Analysingbig-data that include consumerpreferences, device datacapture and the cost andoutcomes of treatments canhelp in identifying the mostclinically and cost-effectivetreatments to apply. Variouspredictive tools and resourcescan be leveraged to informquality of care improvementswith enhanced clinical insightsderived to support and financethe significant increase in big-data initiatives.Better revenue cycleHospitals andservice providersare using big-data toincrease efficiencyof service deliverywww.healthbizindia.in View slide
  • Health Biz India May 201350management: Hospitals andservice providers are usingbig-data to increase efficiencyof service delivery and enhancerevenue cycle management tobe able to offer and sustainlower unit costs for services.Can India stand up to theopportunity?During my presentation atthe World Education Summitin 2011, I mentioned thatwe are going to face extremeskill shortages in the keyareas where offshoringfor healthcare big-data isconcerned. As a country, Indiawould only be able to producearound 12,000 trainedprofessionals in the next threeyears and ready to deploybio-statisticians, doctors anddata scientists to service thehigh-end big-data outsourcingservices.Products & services tocaptive audience in IndiamarketBig data opportunity in Indiais fairly diverse and consistsof providers, health insurance,researchers, pharma andmedical device R&D, includingclinical trials, consumersand marketers and lastly theGovernment, which would belaggard in the adoption curve.There are five key areas wherewe are seeing some action inproducts and services side inIndia. These include:Personalised healthcaregenomics and beyond: Thereare around five start-ups inIndia in this space, which couldbecome candidates of big-dataproducts and/or services asthey mature into consumergenomics space in India.Transform data toinformation: Some of theincubating M2M and machinelearning product companiesare trying to verticalise intohealthcare in India. Given thegrowing flood of healthcaredata, and the late-adoptingnature of the field, a big unmetneed is to better manage thisdata.Support self-care or mobilecare: This space has shownmaximum traction in terms ofleveraging big-data analytics.Mobile telecom serviceproviders are also launchingsome of the value addedservices in healthcare throughthird-party vendors in thisspace. However, no real big-data winning candidate hasemerged in healthcare so far.Increase awareness: Therehave been sporadic successfulpublic health programs thathave been leveraging big-datato increase health awarenessin India, however none of theinitiative has been successfullyat the national level impactingthe lives of millions of Indians.Some of the start-ups workingon Aadhar platforms for publichealth have either failed orpivoted due to the delays inroll-outs of the schemes.Sectors heating upFrom the heat map in thearticle, it is evident that clinicaldevelopment and pharmaare the two mature sectorsin healthcare leveraging onbig data. Other noteworthysegments that could emergedue to big-data opportunity inIndian healthcare are:Healthcare finance: Whilethere are no venturesspecifically selling productsfor financing or lending forhealthcare expenses, wehave come across ideas atincubation stage that arefunding healthcare expensesas a bridge. These includeventures that are for profitand in the social sector. RBIregulatory clarity in healthcarefinancing NBFCs is will verymuch be helpful in openingthis sector. Big-data basedproducts and services couldhelp in analysing risks and(W)health CheckPiccourtesy-www.blogging.avnet.com View slide
  • Health Biz India May 2013 51fraud by the borrowers forhealthcare expenses.Medical education: The futuregeneration of professionalsneeds to be adequately exposedto big-data scenario. Thesector has yet to warm up tothe reality. The profiling ofstudents and counselling forforeign medical educationhas started using big data toidentify traits that signal anapplicant’s long-term quality.There are couple of venturesor ideas being explored in thisspace. Medical research usingbig-data is yet to touch Indianshores.Med tech innovationand discovery: Med techinnovation and drug discoveryhas started using big-data.There are a couple of venturesin the consumer genomicsspace in India are exploringthis and are showing maturityin discovery informatics andusing large data sets.Health retail: Healthconsumerism would fuel increating this segment in big-data. There are firms that areconducting consumer analyticsas offshoring services provider,I believe that these playerscould extend specific servicesand products to Indian market.Wellness: The competitionin the US$10 billion Indianwellness industry is nowwell aware about the big-data challenge and has beenworking on leveraging itfor consumer analytics andproduct development.In conclusionIndian healthcare industryis waking up to the big-databusiness opportunity as ittouches Indian shores. Theimmediate business to attackwill be the low hangingoffshoring piece. However, wedo face manpower shortages asthe trained workforce for thisnascent sector is going to behard to come by. Big businesswill only come when there isadequate risk capital coming todevelop this sector, else it willnot be big business in India.(W)health CheckKapil Khandelwal has earnedrecognition as an angel investor,venture capitalist and expertin health sciences, education,agri, clean tech and informationcommunications and technology(ICT). His expertise positions himas one of the thought leaders inIndia, Asia Pacific and emergingmarkets. In his 25 years ofhis career, he has carried outover 30 transactions includingcross-border and buyouts. Hehas chaired various committeesat various industry bodies. Kapilruns an early stage investmentfund and his own investmentbanking and advisory servicescompany EquNev Capital PrivateLimited.He can be contacted at: kapil@kapilkhandelwal.com