By Chris George, CEO & Co-founder, QubeHealth
The worlds of financial technology (FinTech) and healthcare technology (HealthTech) are converging at an unprecedented rate, creating innovative solutions to long-standing challenges in healthcare accessibility. In a country like India, where healthcare affordability and accessibility are critical concerns, the synergy between these two sectors is transforming the way people pay for and access medical services.
Digital payment solutions and credit lines are emerging as game-changers, especially for services not covered by traditional insurance. This article explores the burgeoning relationship between FinTech and HealthTech, focusing on the Indian context while highlighting global innovations that provide a glimpse of what the future holds.
The challenges of healthcare access in India
India’s healthcare system faces a dual challenge: the high cost of private healthcare and the limitations of public healthcare infrastructure. Although health insurance penetration is increasing, a large portion of the population remains uninsured or underinsured. Many insurance policies exclude critical services such as outpatient care, dental procedures, and alternative treatments, leaving patients to bear out-of-pocket expenses.
According to a report by the National Health Accounts, more than 60% of healthcare expenses in India are paid directly by individuals.
For a significant portion of the population, these expenses are financially crippling, often leading to delayed treatments or complete avoidance of necessary healthcare. For those who can afford to pay for their care, a majority of their household expenditure is on healthcare, often non-emergency health and wellness services.
This is where the integration of FinTech and HealthTech is creating meaningful change.
How fintech is transforming healthcare financing in India
Digital Payment Solutions –
1.Digital payments have significantly eased the process of paying for healthcare services. Unified Payments Interface (UPI) systems, mobile wallets, and payment gateways enable Indians to make seamless, cashless transactions across hospitals, clinics, and pharmacies.
2. However, specialist ‘healthcare-focused’ payment apps, are easing the burden of healthcare payments, by providing a frictionless payment system, as well as embedding finance for quick access to cash to pay for their family’s care (the author is co-founder of QubeHealth-Pay, an app that offers such services).
3. Hospitals like Fortis Healthcare and Apollo Hospitals have adopted digital payment systems, ensuring smoother transactions and reducing the dependency on cash, particularly in emergencies.
Healthcare-Specific Credit Lines –
1. Credit lines tailored for healthcare expenses are rapidly gaining traction. These products provide patients with immediate access to funds for medical emergencies or elective procedures not covered by insurance.
2. Indian FinTech firms such as Fibe and Bajaj Finserv Health EMI Card have introduced credit facilities that can be used at partnered hospitals and pharmacies, allowing patients to pay off their bills in instalments.
3. Other healthcare-specific apps, provide a membership-based instant medical loan of up to Rs. 10 Lakhs, at no cost, and easy payback periods.
Insurance and Micro-Loans –
1. While insurance typically caters to hospitalisation, FinTech players are addressing gaps by offering micro-loans for outpatient services and diagnostics. Platforms like HealthAssure and Policybazaar leverage FinTech to provide micro-insurance and loans, ensuring coverage for previously neglected healthcare expenses.
The role of healthtech in enhancing fintech solutions
While FinTech addresses affordability, HealthTech focuses on accessibility. The convergence of these sectors creates a robust ecosystem for patient care:
1. Telemedicine Integration: HealthTech platforms like Practo and 1mg now incorporate digital payment options, enabling patients to pay for teleconsultations, lab tests, and medications online.
2. AI-Driven Credit Risk Assessment: By integrating AI and HealthTech data, FinTech companies can better assess the creditworthiness of patients, offering personalised credit solutions. For example, a person with a consistent history of health checkups might receive lower interest rates for medical loans.
3. Subscription Models: Companies like Cure.fit have introduced subscription-based health plans that combine fitness, telemedicine, and diagnostics, with payment options facilitated by FinTech partnerships.
Global innovations in fintech and healthtech
Globally, the intersection of FinTech and HealthTech is showcasing cutting-edge innovations that India can emulate:
1. United States: Health Savings Accounts (HSAs) – Platforms like Lively in the U.S. offer Health Savings Accounts integrated with mobile apps for seamless contributions, payments, and reimbursements. These accounts allow users to save pre-tax dollars for medical expenses, bridging the gap between out-of-pocket costs and insurance coverage.
2. China: WeDoctor – China’s WeDoctor integrates digital health services with FinTech, providing users with financing options for healthcare services. Patients can apply for micro-loans and pay for teleconsultations directly through the platform, simplifying the patient journey.
3. Africa: M-TIBA – In Kenya, M-TIBA is a mobile health wallet that enables users to save, borrow, and pay for medical treatments. It’s a prime example of how FinTech can address healthcare affordability in low-income regions.
The future of fintech and healthtech in India
India stands at a critical juncture where the convergence of FinTech and HealthTech can address systemic gaps in healthcare accessibility. Here’s what the future may hold:
1. Wider Adoption of Embedded Finance: Embedding financial services directly into healthcare platforms can provide instant credit and payment options. Imagine consulting a doctor on an app like Practo and securing a loan for surgery in the same interface.
2. Blockchain for Medical Financing: Blockchain technology could revolutionise healthcare financing by ensuring transparency in medical loans, insurance claims, and patient records. This can build trust among stakeholders and streamline processes.
3. Pay-Per-Use Healthcare Models: Inspired by global innovations, India could see the rise of pay-as-you-go healthcare models facilitated by FinTech, reducing upfront costs for patients.
4. AI-Powered Predictive Financing: By analysing patient data, AI could predict upcoming medical expenses and suggest tailored financial products to ensure preparedness.
The intersection of FinTech and HealthTech represents a promising frontier for addressing India’s healthcare challenges. By leveraging digital payment solutions, credit lines, and innovative technologies, these sectors are democratising healthcare access and making it more affordable for all. As India continues to embrace these advancements, it has the potential to emerge as a global leader in health financing innovation, ensuring a healthier future for its citizens.