The industry currently at $5.4 billion is expected to continue growing at 15-19 percent a year
Warning that the radical changes that are being institutionalised will have series impact on the health of people and can put millions of lives at risk, the IMA said it is "highly perturbed" by the move.
The home healthcare industry in India is expected to continue growing at 15-19 percent a year to touch $11-13 billion by 2025 from $5.4 billion currently, a report by consulting firm Redseer Consulting said.
According to the report, consumer pain points with hospital services in India like access and availability, risk of getting infected, increasing costs in addition to the hassle of repeat hospital visits, lack of personal care and high hospitalisation costs are the major factors that consumers are looking at home healthcare as the emerging solution.
Infact, home healthcare solutions can be up to 40% less costly as compared to hospitals as they utilize available capacity in patient homes. A hospital like ICU setting at home costs just around $107 to $143 per day, according to RedSeer’s report.
Further, home healthcare can reduce unnecessary hospital visits by up to 65% and reduce the overall operational costs of hospitals by 20%. Additionally, it has also been seen that patients have a faster recovery cycle.
These factors along with increasing consumer receptiveness towards Home HealthCare, rising Doctor’s acceptance of Home HealthCare, improved Insurer’s willingness to cover Home HC expenses and significant scope to grow, considering the growth of the home healthcare market in developed economies, are driving the growth of the market in India.
“With hospital safety concerns exposed due to COVID, the consumer demand of home healthcare solutions is expected to rise significantly in the next few years. Even hospitals are willing to partner with home care providers or launch their own services, to ensure that in-patient care can be made available for more critical needs. In addition, insurance coverage of home healthcare (which also saw a positive push during COVID with IRDAI’s regulation on mandatory coverage of COVID home treatment) is likely to play a pivotal role in adoption of this segment in India,” Kushal Bhatnagar, engagement manager, Redseer Consulting firm, said.
Led by the growth potential, the Home healthcare market in India has seen the emergence of a variety of organized models in this space, which bring in superior benefits around quality and transparency of services. Driven by the increase in reach across consumers, the organized home healthcare segment is likely to reach $300 million spend by FY 25, growing at over 40% CAGR. HCAH (HealthCare At Home), Portea, Nightingales, Care24, Apollo Homecare are some of the leading organised home healthcare providers in India.
According to Vivek Srivastava, co-founder and CEO, HCAH, organised home healthcare players are placed favorably in the market, as their ability to provide supreme quality services through high-end digital and transparent systems, is not just being appreciated by consumers, but is also earning thumbs up from doctors and insurers. “During the recent COVID period, governments also relied heavily on the leading organized home healthcare companies, to provide home isolation services to COVID-19 patients – a clear testament of the impact organized home care can create in the health infrastructure of the country. This impact is expected to strongly sustain in the coming years, fueled by collaboration of the organised home care players with insurers and hospital chains,” he added.
As per RedSeer’s estimates, organised home healthcare providers are likely to serve 4-5 lakh patients by FY 25, up from 1 lakh patients served today.