Amol Deshmukh, founder and CEO of MedRabbits said that choosing home care significantly reduces out-of-pocket costs for customers compared to hospital care.
India's home care industry, estimated to be worth $8.8 billion by 2023, is expanding to smaller cities as service costs fall and insurance coverage increases, experts say.
An aging population, a growing middle class, lifestyle diseases, an emphasis on public-private partnerships and the adoption of digital technologies are other factors helping the sector known as out-of-hospital care. The industry provides home care and helps patients who need rehabilitation after a hospital stay.
Vivek Srivastava, Founder and CEO, HCAH India, said out-of-hospital care is any service that does not have a super specialist physically present and does not require specialized infrastructure to deliver care.
“Such services will be needed across the country. In fact, it may be more relevant beyond the metro areas because it addresses the access, affordability and standardized outcomes that are more needed in smaller cities,” he said.
Home care companies say they are trying to reduce families' out-of-pocket expenses. According to the government's National Health Accounts estimates for 2019-20, private spending was responsible for 47.1 percent of the total healthcare costs borne by a family.
Amol Deshmukh, founder and CEO of MedRabbits, says home health care significantly reduces costs for clients compared to what hospitals charge. “There are no room rental costs at home, while home care minimizes unnecessary doctor visits and hospital overhead costs,” he said.
Meena Ganesh, chairman and co-founder of Portea Medical, said home care typically costs consumers 25 to 30 percent less than in a hospital.
“The specific costs may vary depending on the types of services and packages chosen by the individual. Overall, choosing home health care offers a cost-effective alternative for consumers seeking health care,” she says.
Until recently, out-of-hospital care had limited insurance coverage, usually as an extension of costs after hospitalization for 30 to 60 days.
“However, following the Covid-19 pandemic, insurance companies have started offering standalone policies or add-on policies to cover out-of-hospital care. These are commonly known as OPD coverage policies and currently cover doctor visits, medications, pharmacy bills and in some cases home physiotherapy,” said Deshmukh of MedRabbits.
Portea Medical and HCAH offer cash-free home healthcare services through partnerships with more than 40 insurers, including StarHealth, NivaBupa, ICICI Lombard and GoDigit.
India's home healthcare market is expected to be worth $21.3 billion by 2027, up from $6.2 billion in 2020, according to a 2021 report published by NITI Aayog. A separate study from Grand View Research suggests the sector would be worth $10.5 billion by 2023.
HCAH operates transition care centers (TCCs) for post-operative care, Portea Medical and MedRabbits provide in-home rehabilitation services.
Srivastava of HCAH India said these TCCs provide rehabilitation for patients leaving a hospital after a stroke or accident, long-term acute care and nursing services for people coming out of intensive care and requiring long-term respiratory support.
Portea Medical's Ganesh said the industry's goal is to achieve better patient outcomes. “Beyond this, strategic partnerships expand the reach of insurance-backed, accessible home care services to a wider audience,” she said.
First print: January 2, 2024 | 6:45 PM IST