Medical Process Outsourcing/MPO in India : Growth

Medical Process Outsourcing/MPO in India : Growth

Question: Medical Process Outsourcing is a rapidly evolving field in India. Discuss.

• Medical process outsourcing segment in India has expanded due to the following reasons:

- Evolved medical education system
- Established prowess for outsourcing
- Increased transparency
- Favourable regulatory environment

• According to a study by ASSOCHAM and EY, India’s MPO segment is currently estimated at USD 3.3 to 4.2 billion from which the pharmaceutical outsourcing market accounted for 75%

• This is pegged at USD 2.5 to 3.1 billion

• Payer outsourcing market constituted USD 700 to 900 million

• Remaining was accounted for by provider market

• India is the second largest destination following the US in the healthcare outsourcing sector

• Indian players have growing ability to analyse big data, find out hidden patterns and previously unknown correlation

• Domestic players have moved up the value chain as far as service offerings are concerned while maintaining cost competitiveness

• Recent US regulation on Patient Protection and Affordable Care Act and proposed introduction of ICD-10 guidelines has also given impetus to the Indian MPO market

• Domestic demand for MPOs has been fuelled by the following:

- Rising demand for high end healthcare facilities plus multi speciality hospitals
- Established medical and central laboratory infrastructure and training
- Growth of healthcare and life sciences industry

• To fuel further growth, government needs to take the following steps:

- Implementation of data privacy laws,
- Introduction of proper regulation around IP and patent laws
- Proper regulations for intellectual property and patents besides focus on implementation of data privacy laws to boost the MPO sector

• The following factors will drive outsourcing business in the healthcare segment in India:

- Growing pharma sector
- High number of English speaking people
- Low Cost Base
- Large talent pool