Indian home healthcare market to grow 2.5x to $19.9 bn by 2025: NATHEALTH

The largely unorganised and unregulated Indian home-healthcare market is at a tipping point. According to a recent Nathealth study titled ‘Indian Home Healthcare 2.0 – Redefining the Modern Care Continuum’ released on Tuesday, the home healthcare market is expected to grow to $19.9 bn market by 2025.

The study estimated that the market has a potential to grow an additional $5 bn with the right impetus.

The Indian home healthcare market has evolved and grown to a $5.4 bn market today.

The study by healthcare industry body Nathealth highlighted: “India has multiple home healthcare players providing healthcare across preventive, promotive, chronic, acute rehabilitative and palliative care in the comfort of the patient’s home. Traditionally, 60–80 per cent demand for home care has been driven by senior citizens seeking supportive long-term care at home.”

However, the second wave of the Covid-19 pandemic in India, has highlighted Indian Home Healthcare, as a sturdy pillar of support to the Indian Healthcare continuum, by providing advanced and safe care at home, it said.

Designing a framework of regulations, however, holds key for the future of this segment in India, said experts. Siddhartha Bhattacharya, Secretary General, Nathealth said that annually around 20 mn cases are handled by home-healthcare, but around 98 percent of this industry is unregulated.

“Formalising a regulatory framework, setting down standards, and enrolling providers based on who meet these basic standards – are key to the growth and long term prospects of this industry,” he said.

Ameera Shah, promoter and MD of Metropolis Healthcare too pointed out that Nathealth is working with the Centre to devise a regulatory framework for the sector.

The global home healthcare market is estimated to grow to around $390 Bn by 2026 from an estimated $ 275 Bn in 2020.

“The accelerated growth of the segment across the developing and developed world is bolstered by strong consumer preference, adoption of virtual care, and digital tools. Reliability, accessibility, and scale readiness have recognized homecare as a mainstream care modality worldwide,” the report says.

India should be no different from other countries in unlocking the potential of home healthcare.

Growing at 19 percent CAGR, the Indian Home Healthcare market is expected to grow 2.5 times by 2025.

“The value unlock across Digital, Scope of services, and Geography, will further increase the market size in the next two to four years,” the study said.

There is potential for an additional $ 5 Bn value unlock by 2025 in this segment, given the rapid pace of evolution, government inclination towards innovative and efficient care models, increasing internet penetration, and the consumer mindset shift driven by the pandemic.

Home healthcare now constitutes around 3.6 percent of the total healthcare expenditure. In comparison, home healthcare constitutes 8.3 percent of total health expenditure in the developed countries

Around 15-20 percent of the healthcare ecosystem is likely to shift to a virtual care model, including remote monitoring

“Insurers showing inclination towards and IRDAI’s nod on allowing coverage of home care services as an add-on to existing or new policies will drive the adoption even faster. These drivers together are presenting a significant impetus for growth in the near future, particularly when the organized home care segment is growing at a CAGR of around 40%,” the study said. Business Standard