Saturday, February 25, 2012

Limitations in scalability of healthcare delivery model and possible solution


It is very common from anyone who has worked in the IT sector to come across the term ‘scalable’. Basically it points to the capability of the technology components – hardware and software – to ramp up as the business demand goes up. The implicit requirement is that this ramp up is achieved in a relatively short period of time (compared to how things used to ‘scale up’ in the past) and without compromising the performance of the system.

In business also most start-ups are faced with this question by prospective investors and clients. Their ideas are great and workable and some are even profitable very quickly. But then comes the question of scalability and replicability. Here the expectation of the potential investors and clients is that the design of the business model should allow it to grow quickly. But the thing I’m pondering over is that are all business models scalable? Is it right to expect every business to be scalable? What if a particular industry dynamics do not allow scalability? Should I be bothered if it seems that my business model is not as scalable as other business models in other industries?



In the previous post, there was a discussion on various factors that contribute towards creation of an urban healthcare delivery system and on efforts of iKURE towards creation of an ecosystem of partner organizations and experts to finally create a rural healthcare delivery system. You can refer to the post here.

Now the question arises – Is our delivery model scalable? Or for that matter, is even the urban healthcare delivery system scalable?

The basic elements of a care delivery system are healthcare providers, namely doctors and nurses, supportive services like diagnostics, pharmacy and blood bank, care setting which comprises of the physical infrastructure of the clinic/hospital, bed capacity & types and the medical equipments installed in the setup and other ancillary functions like purchase & stores, housekeeping, engineering, med gas etc. Let me also add IT to this list of elements of a care delivery system. So as I discussed in the beginning of this article, scalability is not new to IT and this is a tried and tested model in the sector. But can we stretch or scale up other elements of the care delivery system? How reasonable is it to assume that we can create more health professionals like doctors and nurses in a short time without compromising quality? How economically feasible is it to add more beds and clinics and hospitals infrastructure? How easy is it for anyone to ramp up ancillary functions of a hospital, like stores, housekeeping and engineering?

By very nature, healthcare industry is infrastructure-dependent. Apart from that, there’s this issue of lack of qualified medical professionals. So one would wonder that if one doesn’t have enough staff and support services, what is the point in creating more infrastructure. There’s similar challenge in rural healthcare delivery as well. There are statistics that say there are very few doctors serving India’s massive rural population, compared to relatively better availability of doctors in urban areas. Similarly, there are statistics on paucity of health infrastructure in rural areas and most new infra being developed in cities only. The ROI-driven growth definitely will happen in cities and there are customers who can afford and pay for the healthcare infra built in the cities. In this context, the infrastructure and availability of healthcare professionals in rural areas become bottlenecks in scalability of rural healthcare delivery models.

iKURE’s model is trying to address a different kind of challenge. Whatever healthcare facilities are available in the villages are also not upto the quality standards. So on one hard the villager doesn’t have many options and on the other hand, the only option available to him also is not upto the mark. It’s our endeavour to give a better deal to healthcare seekers in rural areas by creating a collaborative platform where a rural doctor can coordinate care delivery with the assistance of a city-based specialist consultant. With the use of low-cost diagnostics and timely advice from the doctors, we can prevent the health of the patient from deteriorating further and escalate the case to a higher centre of care at the right time. All it takes is a basic infrastructure to be put into place. A small patient-examination room with a computer kept close by can become an iKURE kiosk. The health-worker or the doctor needs to be trained in using iKURE’s software. Communication can happen in English or in regional language.

From a scalability point-of-view, we have a key challenge in terms of taking technology to the rural clinics. As a software company, we specialize in the application which meets the requirement. But investments are also required in the digital infrastructure to be put at the kiosk. All this has to be done without increasing the cost of the treatment to the patient otherwise the whole exercise will lose its purpose. In the Salboni project of iKURE, the CSR partner JSW Steel takes care of these costs and even provides branded medicines at no cost. This model is easily replicable if there are corporates whose vision is to see a healthier community in the areas in which they operate. State governments can also leverage this low-cost technology by bringing its health centres under the ambit of such a project.


As a company iKURE has been able to generate sufficient interest and it’s a matter of time when we fulfill our vision. The need really is to associate with partners who are committed to the cause and who understand that scalability in a healthcare delivery system cannot be achieved overnight. The community has to be taken into confidence and their involvement is essential. Investments in infrastructure have to be made with a greater focus on SROI (Social Return on Investment) and monetizing the investments through alternative activities which can be aligned to education, livelihood, financial support, women empowerment, e-governance and many more. Innovation is the key.

Wednesday, February 22, 2012

Technology-enabled healthcare delivery to under-served market

For the last about 2 years that iKURE has been working on technology solutions for healthcare delivery, we have straddled 2 very different customer segments – rural and urban. And it has surprised us that opportunities for advances in rural healthcare delivery exist through the use of a humble technology platform.
Why I used the term ‘under-served market’ in the title is because I wanted to highlight that rural people also pay out of pocket for their healthcare needs. Their ability to get quality healthcare is limited by Access and Affordability. Most good hospitals are built in urban centres and there also you will witness a huge difference in healthcare facilities available in metros and towns/cities. From my own healthcare experience I have realized that it takes many factors to create a quality healthcare system – Doctors, Nurses, Technicians, Engineers, Billers, Security, Waste Management, Medical Suppliers, Equipment suppliers and maintenance, IT etc. and many other supportive institutions like municipality, banks, electricity dept. among many others. And add to this the problem of high rate of attrition in medical and non-medical staff. So let’s admit that it’s not economically feasible to replicate an urban healthcare delivery system for rural setups in the near future. But rural masses deserve the same standards, yet access is limited because they need to travel a lot to avail of the services of hospitals in the urban setup. Affordability is another issue because one another aspect of the urban healthcare system or a hospital is that it is capital intensive and most of the costs are passed on to the patients. For city-based patients it is within reach because per-capita income level in metros/cities is much higher than those for towns and villages.

In such kind of circumstances, the easiest we can do is to enable patient in a village to seek health services from a city-based consultant without having to travel to the city and at a fraction of a cost of what it would be for a city-based patient. At iKure we leverage this through a hub-and-spoke model. For more information on this, please read the post ‘Health for remotest of areas – the iKure way’.
From our field experiments, we have come to a working model which is supported by Corporate Social Responsibility funds. So while the technology creates Access, the Affordability is taken care of by the CSR grant which subsidizes the treatment costs. It’s heartening to see how such partnerships create difference in the lives of our countrymen.
The scope of this model to radically change the rural healthcare delivery process is immense. Our concept is basically to create a technology platform to enable a rural doctor/health worker to collaborate with a city-based specialist doctor to deliver care to the village-based patient. In this process, we are able to uplift the confidence and credibility of the village-based doctor and significantly improve his decision-making abilities regarding his patients’ treatment. Our health partner also spends their resources in training these health workers/doctors to bring them up to the common communication level with the city-based doctor. The CSR partner funds the medicines, consultations and other health costs for the target community. But as a group, it is our endeavour to make the whole model self-sustaining by letting the community take ownership of the whole system.

As we make progress, we would like to explore opportunities where a fairly good number of spokes or village health centres/clinics are technology-enabled and these are connected to a series of specialized centres to provide quality healthcare to a larger set of population. Many more innovators can leverage this network, for example insurers, pharmaceutical companies, low-cost diagnostic device manufacturers, research institutions etc. As I said in the beginning of this post, there are a number of factors which contribute to make an urban healthcare delivery system. We are in the process of creating an ecosystem of partners and experts who will together create a rural healthcare delivery system which will materialize our vision of delivering quality healthcare services to rural people at a price point affordable to them.
If you share our vision, or you are an innovator passionate about this sector, please contact us at contactus@ikure.in