The health infrastructure in India has witnessed rapid improvements over the last decade. The increasing private and government investment in the healthcare sector has certainly helped improve the quality of medical care available to the country's citizens. But along with the evolution of the healthcare system in the country, the cost of healthcare has also witnessed a significant increase over the same period.
Healthcare expenses encompass the cost incurred by individuals to access medical facilities like hospitalisation, medication, diagnostics, palliative care, etc. These expenses can either be borne by the government, by insurance companies, or by individuals themselves. The expenses paid by individuals for receiving the desired medical care are also known as 'Out of Pocket Expenses' or OOPE. According to the data shared by WHO, in the list of highest OOPE paying nations, India stands at the 15th position.
Out of Pocket Expenses: Crucial Impact on Affordability of Healthcare Facilities
On average, the proportion of OOPE in total healthcare expenditure in India is 65% compared to the global average of around 20%. Progressive Asian countries like Thailand, South Korea, Singapore, and China fare better than India on this parameter. The situation becomes even more worrisome when analyzed at a micro-level. In states like Bihar and Uttar Pradesh, the OOPE stands at around 80% and 75%, respectively. Even in economically more advanced states like Gujarat and Karnataka, OOPE is above 50%. This leads to almost 7% of households in India being pushed down the poverty line.
Expenditure on medicines forms a significant part of OOPE for Indian households, with almost 43% of OOPE being undertaken to purchase medicines. This makes the cost of medicines the single biggest contributor to OOPE. Further analysis highlight that, herein, 18% of the cost of medicines is for in-patient care, i.e., after being admitted to a hospital, while 82% is for out-patient care.
While schemes like Pradhan Mantri Jan Arogya Yojana were launched to provide ‘cashless and paperless’ access to quality healthcare, the beneficiaries are still charged for diagnostics, medicines, and pre-hospitalization costs. Over and above that, the patients do not receive any outpatient consultation under this scheme.
With such a significant sum being spent on the purchase of medicines, there is an increasing demand across Indian households for the availability of more affordable medicines. But merely ensuring affordability might not offer the desired results as the non-expensive medicines must be easily accessible and should offer the desired results. When we look at this situation, it is easy to understand the three-pronged approach required to address the increasing burden of OOPE on the households, i.e., Affordability, Accessibility, and Quality.
Affordability, Accessibility, and Quality: The need of the hour
Simply put, the customers need affordable medicines that are easily available and are effective. These three factors will have a profound impact on the future of the retail pharmaceutical market in India. I'll here discuss these three important facets in further detail to better understand what lies in store for the customers.
Affordability
According to the statistics, due to high costs, only 7% of patients adhere to the prescribed drugs as mentioned by the doctor. A staggering 55 million Indians are being pushed into poverty due to increasing expenses for purchasing medicines. The government has been trying hard to lower the cost of essential as well as several non-essential medicines. Department of Pharmaceuticals under the Ministry of Chemicals and Fertilisers via Drug Price Control Orders (DPCOs), with the National Pharmaceutical Pricing Authority acting as the executing body, has been overlooking the formulation and implementation of price control mechanisms in the pharma sector. An increasing number of medicines are being put on the National Essential List of Medicines to ensure their affordability for the general populace.
Attempts at popularising generic medicines are another step in the right direction by the government. But the cost of branded generic medicines is somewhat higher as compared to non-branded generic medicines. For addressing this problem of affordability, the government of India introduced the Jan Aushadhi stores. Herein, private entrepreneurs entered into a partnership with government authorities to open physical medicine stores across different regions. Without a doubt, this was a step in the right direction. Now, we have come a long way from the introduction of the Jan Aushadhi stores in 2008. In our pursuit of affordable medicines, DawaaDost is now setting up physical stores across key locations in different cities, where generic medicines are available at a fraction of branded drugs. DawaaDost is focused on transparent pricing for creating a long-term relationship with our customers that can transform into a lifelong saving platform for them. At DawaaDost, we have over 70,000 medicines listed on our customer-friendly web platform, which in turn can provide them with more than 50% savings on their prescriptions. Over a year, customers can save up to Rs. 50,000 every year by opting for high-quality generic medicines recommended by our platform instead of expensive medicines recommended in the prescription.
Accessibility
While the Jan Aushadhi and other physical generic medicine stores have played their role in ensuring the availability of affordable medicines, the problem of accessibility remains a challenge in some regions. This is where the internet revolution in India is offering a viable solution. With the emergence of e-pharmacies, the Indian pharmaceutical sector has undergone a complete metamorphosis in the last five years. Customers can now place the orders for their medicines using a mobile app and get the medicines delivered to their place in a matter of few hours (or a few days). You have the freedom to choose branded medicines or generic medicines as per your preferences, undertake a cost analysis and then pay for the medicines according to your convenience.
At DawaaDost, we are introducing several new and interesting features on our online platform to enhance the availability of affordable quality medicines. These features include voice search for medicines, Hindi language search options, customer support through WhatsApp, and several others. We are also taking affirmative steps towards realising our goal of making quality medicines available to customers within 5 minutes from their place.
At Dawaa Dost, we are committed to eliminating the paradox of choice for our customers by performing back-end operations pertaining to the selection of the best medicine for them. When we provide our customers with the best alternative, they readily accept the same as our recommendations are consistent throughout their relationship with DawaaDost. Presently, we have over 25 physical stores, which are serving over 20,000 pin codes across India through our online platform, and are readily expanding the coverage to new locations. Over the next couple of years, we aim to double our customer reach from the present level of one crore unique customers every month.
Quality
The global counterfeit drug industry has been estimated at over US $200 billion, where almost 15% of medicines sold globally are false. As per reports, approximately 75% of counterfeit drugs originate from India. According to BASCAP- 'Pharmaceutical industry is the most counterfeited industry in India.' As per the data released by the Central Drugs Standard Control Organisation, during a nationwide survey in 2009, 24136 samples were collected from 1995-2008, out of which 1693 were counterfeit products. A report from Rama Lakshmi, a renowned researcher, suggests that up to 25% of drugs sold within India are counterfeit. As per the estimates of the health ministry, almost 5% of drugs in India are counterfeit, whereas 0.3% are spurious. In 2008, out of 1,83,020 chemist shops across India, licenses of more than 8400 shops were suspended or cancelled by the State Drugs Control Organizations as they were found to be involved in the trade of counterfeit medicines.
Counterfeit medicines have always been a challenge for regulators in India. Indian pharmaceutical manufacturing ability is ranked as one of the best globally. Still, the problem of substandard or spurious medicines is challenging the expansion of our pharma industry across the world. This evil manifested its ugliest face during the second wave of the Coronavirus pandemic when numerous cases of selling fake medicine were reported. The governments need to step up their game and give new teeth to the state and central drug regulators. While strict laws against substandard or spurious medicines are present in the rule book, their implementation falls woefully short. Strict regulation mechanisms need to be created to ensure the quality of medicines available in the market.
At DawaaDost, the best online pharmacy in India, we are committed to offering only genuine and high-quality medicines for our customers. We list the medicines on our platform after a thorough screening process wherein only those drugs that have been manufactured by renowned manufacturers are listed. This offers considerable peace of mind to our customers who can avail all the benefits of quality medicines at the best prices.
By establishing harmony between these three aspects of the pharmaceutical sector, we are positive that we will achieve the desired results. At DawaaDost, we are committed to provide affordable high-quality medicines to every Indian and free them from the clutches of expensive healthcare and medication.
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