Press release

“Trust deficit” in health care – EY-FICCI report

New Delhi, 1 September 2016

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  • 38% of the respondents believe that hospitals do not act in their best interest and 24% believed that doctors do not act in their best interest
  • Health management Service opportunity size to be between INR 8 to 14 billion over the next 5 years1
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Health care providers need to address the issue of trust deficit in their patients, notes a EY-FICCI report titled ‘Re-engineering Indian health care: Empowered patient (consumer), enhanced outcome and efficient business’ released today at FICCI’s flagship annual health care conference – FICCI HEAL 2016.The report cites a survey conducted by EY among 1000 respondents, where 38% believed that hospitals not always act in their best interest, while 24% believed that doctors may not act in their best interest.

The report takes a view on the overall scenario of health in the country and calls for action from all stakeholders – including the government, health care providers, academicians and entrepreneurs – to adapt to the evolving consumer and health needs in the country to be able to be best prepared for the next phase of growth.

Dr Nandakumar Jairam, Chair – FICCI Health Services Committee & Chairman & Group Medical Director Columbia Asia Hospitals India says “As India joins many other nations in debating how best to reform the health care sector, it is critical that we engineer these reforms very thoughtfully. This calls for radical improvement of healthcare delivery processes that enhances the quality of care and dramatically lower costs, while also greatly expanding patient accessibility to this improved, more affordable care. We would need a completely new approach for achieving these reforms, which should involve three pillars: people, process, and technology.”

Ashok Kakkar, Co-Chair - FICCI Health Services Committee & Managing Director - Varian Medical Systems further added, “The process of ‘Re-engineering Indian Healthcare’ will need a collaboration between all the stakeholders of the sector, who must innovate beyond their traditional processes to evolve the sector and rise to the challenge of rapid digitization and technology advancement to deliver efficient healthcare.”

Emerging Consumerism in health care

The emerging consumerism in health care necessitates a focus on patient experience and not just care. 60% of the survey respondents expressed the need for reviews and feedback from their peers to allow them to make an informed choice while selecting a provider.

The report calls on the various stakeholders to immediately address the issue of trust deficit, infuse efficiency in processes, especially the ones which are consumer facing, empowering the patients with information regarding their health, and to make availing health care convenient.

It recommends health care providers to embed patient centricity in the designing and execution of core operating processes and systems, and for entrepreneurs to create a social media platform for patients to express their feedback in an impactful way in order to be able to adapt to the evolving consumer ask.

Muralidharan Nair, Partner and Leader – Health, EY India says, “The Indian patient is poised to play a significant role in the evolution of the future health system by moving from just being a docile patient, to becoming an informed consumer eager to participate in the care process and demanding dignity and transparency from the providers. An online crowd sourced platform like Tripadvisor for enabling the voice of customer on reviews and feedback is imminent and service providers will need to adapt to this changing context.”

Need to focus on health and not sickness

The health care system in the country has to move from being a curative one to being preventive. Stakeholders must leverage technology, allowing for a more proactive approach. In line with this, there’s a need to focus on a robust primary care system and integrated care, promote the adoption of healthy behaviour among individuals, bring a focus on health performance and not just services, and improve access to provide sick-care to all.

Health Management Services, a new health care service focused on effective measuring, monitoring and management of health enabled by digital technologies and a virtually integrated network of care providers, is estimated to present an opportunity of INR 8 billion to 14 billion over the next 5 years.

The report also recommends investing in artificial intelligence based clinical decision support systems, and building services that positively influence patient behaviour through the use of technologies, social networks, games and contracts.

Sumit Goel, Executive Director, Business Advisory Services, EY says, “An equally important trend will be a shift in consumer and policy makers focus from sick care to healthcare where preventive care, primary care and health performance and not just health service will be game changer for the industry. Technology will play a significant role in catalysing this change by providing unprecedented capabilities to transform the point of care capabilities – both to individuals and institutions – and also make possible valuable health intelligence for better management of sickness and skill of care provider.”

Make the business of health care healthy

While there is a dire need to address the changing health care scenario in the country, the report also calls on health care providers to plan hospital projects with the aim of being successful, focus on cost efficiency to counter operating margin pressures, and lastly sustain operational efficiency by not only managing but also teaching efficiency to clinicians.

The report recommends that health care providers conduct robust data-driven business planning involving multi-stakeholder reviews. They must also undertake a targeted EBITDA improvement program with focus on achieving and sustaining commercial excellence in operations across man-power, machine and material requirements. The educational system could also to incorporate financial courses within the existing MBBS system to achieve optimal outcomes at the lowest costs.

Commenting on the same, Muralidharan Nair says, “Private healthcare providers must focus on optimising operational efficiency to keep their business healthy as the environment will continue to put pressure on reducing pricing of service even while cost escalation will continue in key elements like salary, materials and utilities.”

These key factors will catalyse the reengineering of the current health care system and the effectiveness of our response to these will define the contour, capability and capacity to deliver on the health needs of over a billion people with the unique challenge of disease burden and limited resources at an individual and institutional level.

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Notes to Editors

About EY

EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

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About FICCI

Established in 1927, FICCI is the largest and oldest apex business organisation in India. Its history is closely interwoven with India’s struggle for independence, its industrialization, and its emergence as one of the most rapidly growing global economies.

A non-government, not-for-profit organisation, FICCI is the voice of India’s business and industry. From influencing policy to encouraging debate, engaging with policy makers and civil society, FICCI articulates the views and concerns of industry.

It serves its members from the Indian private and public corporate sectors and multinational companies, drawing its strength from diverse regional chambers of commerce and industry across states, reaching out to over 2,50,000 companies.

FICCI provides a platform for networking and consensus building within and across sectors and is the first port of call for Indian industry, policy makers and the international business community.

www.ficci.in; www.ficci-heal.com

1The estimate only considers the geriatric population more than 60 years of age. However, the opportunity could expand with the service maturing and younger population with chronic ailments also starting to use it.