Opportunity at the bottom of the pyramid : Healthcare

Last year I came across a book The End of Medicine: How Silicon Valley (and Naked Mice) Will Reboot Your Doctor by Andy Kessler. Even though I couldn't locate the book in Indian bookstores, the concept did trigger an interesting thought process from business perspective...

Before I share my thoughts, I would like to give a clarification. IT has been used in healthcare industry in a big way, but mostly in supporting processes which provide incremental innovation to aid the existing system. We will attempt to build a case for radical transformation of the industry.

The first thought (in business terms) is that the target market comprises primarily of non-users OR partially served users; i.e. 90% of the Indian population comprises of people, who cannot afford the expensive services and now increasingly expensive drugs. This is the bottom of the pyramid.

Aggregation of business at this level would be a huge opportunity in a country with a billion people, even if the per head realization may be extremely low. This is going to be a win for all; people who will be able to afford the medical services and the founders will build a business of gigantic proportions...

Here is an idea which can be of great value, even though it cannot tap the bottom of the pyramid.

One of the key problems and easiest to solve is the information asymmetry. In a typical transaction, the patient rarely participates in the decision making process.

What if we give a device in patient's hand where he can get a real time information on the proposed diagnostics, line of investigation, expected results and subsequent course of action...

What if this devices immediately shows to the patient alternatives to prescribed medicines which can potentially lower the cost of medicines... This decision can happen in consultation with the doctor...

Will share more on this subject at a later point of time...