The Challenge of Healthcare Affordability

Envisioning the future of accessible, affordable and patient-centered healthcare will improve health outcomes and enhance the well-being of communities across the nation and beyond

By Pruthvinath Kancherla, Co-Founder, Affordplan

In today’s world, paying for healthcare has become a major struggle for many families, creating serious financial stress and making it harder for people to get the care they need. Rising costs often force patients to delay or skip important tests and treatments. Hospitals also face challenges in providing the best care possible while managing tight budgets and shrinking margins.

With around 70 per cent of people in India falling below the poverty line due to healthcare expenses and many not having insurance to fall back on, the situation raises ethical questions about denying care based on a patient’s ability to pay and highlights deeper issues like skyrocketing costs, inadequate insurance coverage, and socio-economic disparities.

To address these issues, we need sustainable solutions that make healthcare accessible for everyone, regardless of their financial situation.

Solutions for affordable healthcare

The integration of innovative financial solutions is reinventing the healthcare experience by offering payment solutions that simplify the management of healthcare costs, from routine check-ups to complex treatments.

Imagine managing your healthcare expenses with ease through digital payment platforms that offer flexibility and convenience. Such solutions in healthcare offer a range of benefits designed to ease the financial burden on patients.

These solutions provide options for out-of-pocket as well as insurance-covered procedures. Tools such as gamification, incentivisation techniques and availability of loans and credit where needed, make them a true friend to both the service provider as well as the healthcare seeker.

These tools also offer transparent tracking and easy management of healthcare expenses, providing enhanced financial clarity and supporting well-informed decision-making. This tailored approach helps ensure that financial and medical services are aligned, ultimately reducing the financial strain of medical care for patients and the hospital ensuring a perfect fit for each partnership.

For uninsured patients or those facing high costs, these solutions can provide crucial support by making treatments more affordable.

Integrating financial solutions in hospital operations

Adopting such disruptive solutions enhances patient satisfaction and operational efficiency. By streamlining payment processes and reducing administrative complexities, hospitals can focus more on delivering top-notch care. This results in higher revenue and improved cash flow.

The approach not only improves patient retention by seeing repeat usage and improved lifetime values, but also greater transparency and hence trust. Additionally, financial flexibility often leads to increased utilisation of ancillary services like laboratory tests and pharmacy purchases, leading to improved healthcare journeys.

Embracing technology isn't just a trend; it's a strategic move towards delivering high-quality, patient-centered care. 

According to the October 2021 report by NITI Aayog titled ‘Health Insurance for India’s Missing Middle,’ “approximately 30 per cent of India’s population lacks health insurance coverage. This low penetration rate is particularly concerning for low and middle-income groups, who face significant challenges in managing healthcare costs without insurance.

A case mix of insurance, credit and payment options helps navigate care delivery challenges which are more customised to the patient.

Looking outward

Looking at other countries, we see successful examples of fintech integration in healthcare. For instance, Sweden has implemented similar solutions with notable success, resulting in improved healthcare accessibility and affordability. This success is largely due to Sweden's

strong digital infrastructure and innovative payment models, which have made healthcare more accessible and efficient. By learning from these examples, India can adapt and implement best practices to improve its healthcare system.

In conclusion, while the road to healthcare affordability remains challenging, advancements in fintech offer a pathway to transformative change. By leveraging digital technologies, we can streamline healthcare payments, improve billing transparency, and reduce administrative costs.

Fintech solutions also enable innovative payment models, such as installment-based payments and microinsurance, making healthcare more accessible to underserved populations. Moreover, integrating fintech with healthcare data systems enhances patient care by enabling personalised treatment and better resource allocation.

Through innovation and collaboration, we can envision a future where healthcare in India is more accessible, affordable, and patient-centered, ultimately improving health outcomes and enhancing the well-being of communities across the nation and beyond.