Diagnostics in India – Expectations from 2022 for medical facilities

Diagnostics has a significant influence on the continuum of treatment and early detection of critical diseases. Diagnostic tests improve patient care, aid in safeguarding consumers’ health, and help to keep healthcare costs under control. Majority of clinical decisions (around 70–80%) are based on the findings of diagnostic tests, as these studies help in defining a clear course of treatment.

Covid-19 has further emphasized on the role that diagnostics play in overall healthcare management. Hence, the industry is expected to grow further. The pandemic also provided an impetus for the industry to rapidly innovate in order to face the enormous task of responding to various challenges such as urgent doorstep sample collections, quicker turnaround time, and other issues related to management of large sample size. The industry rose to the occasion and was able to recalibrate its approach to suit the pandemic and post-pandemic world.

The rise of the diagnostics sector is also corroborated by several studies conducted around the current and future outlook of the industry. According to the NITI Aayog report titled Investment Opportunities in India’s Healthcare Sector, 2021, the diagnostics industry in India is estimated at USD 4 billion. From this, the organized sector accounts for about 25 percent of this (15 percent in labs and 10 percent in radiology). Furthermore, the diagnostics market is predicted to grow at a CAGR of 20.4 percent in 2022.

So, let us understand more about some of the growth factors that will drive this industry toward innovation and success in the post- pandemic world.

Rising public awareness around the need for early disease detection and treatment is likely to drive market expansion. The numbers of preventive check-ups have already seen a significant uptick across centers. And while preventive care becomes an increasingly familiar trend, quality and test accuracy will be the key metrics for success for the diagnostics industry.

Similarly, with the increasing penetration of health insurance and demand for quality services, the diagnostics sector will witness a strong growth. Till date, most of the diagnostics services were a part of out-of-pocket expense for the insurers. Although it is a premature prediction, insurance cover and coverage of diagnostics services as a part of health insurance will eventually become a game changer. Hence, this huge opportunity can become another major growth driver for the sector.

Apart from this, government initiatives, such as the PM Ayushman Bharat Health Infrastructure Mission, aim to improve the country’s healthcare infrastructure, and diagnostics is a crucial element. This will result in the launch of pan-India programs that are focused on creation of adequate facilities for diagnostics and treatment. Another important aspect highlighted in the scheme is to set up a widespread testing network for the diagnosis of critical diseases. This dedicated, focused, and increased collaboration by public and private stakeholders will define the sector’s overall growth.

India has been witnessing a huge disease burden over the past few years. Not only is India the diabetes capital of the world but the country is also seeing an alarming rise in cases related to other chronic diseases.

As per the World Health Organization, more than 74 million in India are living with diabetes, while over 115.1 million suffer from chronic kidney diseases. These statistics reiterate the fact that there is a strong need for strengthening the diagnostics infrastructure through programs, such as Ayushman Bharat Health Infrastructure Mission, as diagnostics will play a huge role in disease management across therapy areas.

All of these factors, coupled with the strength of disruptive technologies, such as robotic process automation, machine learning, artificial intelligence, and digitization will structure the ecosystem based on consumer choices and prepare it for their future needs.

In conclusion, it will be interesting to witness the evolving trends, collaborations, and technology-influenced disruptions that will define one of the fastest-growing sectors in the healthcare industry going forward. The transformation has already begun and strategic efforts through public-private partnerships will further drive its success.