With digital interventions such as telemedicine platforms, AI-driven diagnostics and mobile health initiatives already ensuring access for patients to specialists and timely interventions, going forward, innovative financing solutions, including flexible payment plans, bundled care packages and digital tools that provide real-time cost estimates and insurance eligibility, would help patients make informed choices and access affordable healthcare, says Dr. Azad Moopen, Founder & Chairman, Aster DM Healthcare in an interview.
Healthcare costs can be a challenge for many in India. What are the key factors driving these high costs, and how can they be addressed?
India’s healthcare landscape is undergoing a remarkable transformation, blending technological advancements, infrastructure expansion, and enhanced clinical capabilities to deliver world-class care. As we strengthen quality outcomes, ensuring affordability remains a shared objective for all stakeholders.
A significant portion of healthcare costs is linked to the rising adoption of cutting-edge medical technologies, which enhance diagnostic accuracy and treatment precision. Simultaneously, the growing burden of non-communicable diseases (NCDs) such as cardiovascular diseases, diabetes, and cancer requires sustained, long-term care, adding to overall expenditure.
However, this scenario presents India with the opportunity to pioneer innovative approaches to cost management. Encouraging domestic innovation in medical devices and pharmaceuticals, investing in preventive health, and strengthening early screening programmes will significantly lower the need for expensive interventions. Collaboration across sectors — involving healthcare providers, technology innovators, insurers, and policymakers — will be key to striking the right balance between cost and quality.
How can we ensure that quality healthcare is accessible and affordable for a larger section of society?
India’s strength lies in its ability to innovate and find scalable solutions that work for its vast and diverse population. Expanding access to quality healthcare calls for a strong focus on primary and preventive care, complemented by advancements in digital health solutions.
Telemedicine platforms, AI-driven diagnostics, and mobile health initiatives have already demonstrated tremendous potential in reaching remote communities, ensuring access to specialists and timely interventions.
Going forward, innovative financing solutions including flexible payment plans, bundled care packages, and digital tools that provide real-time cost estimates and insurance eligibility, will empower patients to make informed choices. Through technology-enabled efficiencies, operational excellence, and clinical innovation, healthcare providers can work together to make quality care financially accessible to a far larger section of society.
Government schemes support the underprivileged, and the wealthy can manage healthcare expenses, but what about the 400 million middle-class Indians? How can we ease their financial burden when it comes to medical care?
India’s vibrant and aspirational middle class is one of the backbones of the nation’s economic progress, and ensuring their health security is an equally important priority. The penetration of health insurance is steadily increasing, particularly post-Covid, but it is a long way to go.
As per NITI Aayog, nearly 400 million Indians lack access to healthcare. While approximately 70% of the population is covered under public or voluntary health insurance, the remaining 30%—equivalent to around 40 crore people—remain uninsured.
The Out of Pocket expenditure, though as per the data by National Health Accounts Estimates 2020-21 and 2021-22 released by the Health Ministry in September 2024 saw a decline from 64.2% in 2013-14 to 39.4% in 2021-22, it is till a long way to go.
In addition, hospitals and healthcare providers need to provide greater transparency around treatment costs, along with curated health packages and structured payment plans that provide predictability and ease financial pressures.
Digital platforms that enable real-time cost estimation, insurance eligibility checks, and seamless cashless transactions will further enhance affordability and confidence in the healthcare system.
Countries like the U.S. and those in Europe have well-established healthcare models. What steps can India take to develop a system that ensures high-quality and affordable care for all?
India has the advantage of being able to draw lessons from global healthcare models while creating a system that is uniquely suited to its own socio-economic and demographic context. The country’s ongoing focus on strengthening primary healthcare, expanding health insurance coverage, and embracing digital health is already laying a strong foundation for inclusive and affordable care.
What sets India apart is its entrepreneurial spirit, which has driven innovations such as telemedicine platforms, affordable diagnostic technologies, and community-based health programmes. By nurturing these innovations, encouraging public-private collaborations, and promoting health literacy, India can create a robust healthcare ecosystem that ensures quality care is accessible to all, while remaining affordable and financially sustainable.
We firmly believe in the power of public-private partnerships (PPPs) to accelerate progress. By integrating AI-driven predictive analytics, teleconsultations, and remote diagnostics into national health systems, while encouraging corporate players to participate in social health initiatives, India can create a resilient healthcare framework that ensures quality, affordability, and access for all.
Improving the medical infrastructure is also a key aspect in building a robust healthcare ecosystem that ensures accessibility and affordability and rightly so was addressed in the last Union Budget. The commitment to adding 75,000 MBBS seats over the next five years, including 10,000 in the forthcoming fiscal year and the number of medical colleges growing from 387 to 702 in the last 10 years is a positive step forward in addressing the gap.
More doctors mean improved accessibility to quality healthcare, reduced patient load in overcrowded hospitals, and better primary care services. Additionally, an increased number of trained professionals strengthens specialised care in fields like oncology, cardiology, and emergency medicine, ultimately improving healthcare outcomes.
Apart from doctors, building more schools of nursing and paramedics is also crucial to addressing the growing healthcare demands of the country. While significant progress has been made in expanding medical education, the shortage of trained nurses, paramedics, and allied healthcare professionals remains a major challenge.
These professionals form the backbone of the healthcare system, providing essential support in hospitals, clinics, and emergency care. With India’s rapidly growing population and increasing burden of non-communicable diseases, there is a pressing need for skilled healthcare workers to bridge the gap in patient care.
Given the low penetration of health insurance in India and the challenges around claim approvals, how can we make cashless treatment a reality for more people?
The insurance penetration in in India though has been seeing an overall upswing, the response to the sector in last 5 years has been confusing. While post-covid there was a rise in demand for health insurance, in 2023-24, India’s overall insurance penetration stood at just 3.7%, declining from 4.2% in 2021-22.
With the government’s initiatives to boost insurance penetration, including the expected benefits of 100% Foreign Direct Investment (FDI), India’s insurance sector is projected to grow at 7.1% annually over the next five years. The relaxation of FDI limits is expected to bring in more capital, leading to innovation, improved infrastructure, and broader access to insurance products.
A major barrier to health insurance uptake in India is limited awareness. In FY 2023, India’s insurance density reached just $95, compared to the global average of $889. This disparity highlights the need for widespread education and awareness campaigns.
Leveraging technology to create seamless connections between healthcare providers, insurers, and patients holds great potential for making cashless treatment widely available. Digital platforms that enable real-time verification of policy coverage, paperless claims processing, and direct communication between hospitals and insurers can accelerate cashless adoption.
There is also scope for creating simpler, modular insurance products that cover day-to-day healthcare expenses alongside hospitalisation, making cashless healthcare relevant not just for serious illnesses, but for regular medical needs as well. As digital health infrastructure expands, cashless treatment should increasingly become the norm rather than exception.
The financial strain of treating cancer and rare diseases has impacted many families. What kind of institutional support or policies can help reduce this burden?
India has made notable progress in expanding access to cancer care and treatments for rare diseases through dedicated programmes and specialised centres of excellence. The next step is to build on these efforts through collaborative models that involve healthcare providers, pharmaceutical companies, insurers, and social enterprises working together to ease the financial burden on families.
The Government of India is playing an active role in this as well by announcing, in the recent Union Budget, that it will facilitate the establishment of 200 Daycare Cancer Centres in all district hospitals across the country over the next three years. The Centre has also announced that 36 life-saving drugs, including those for cancer and rare diseases, will be fully exempt from customs duty. This builds on previous reductions in duties on drugs like Trastuzumab Deruxtecan, Osimertinib, and Durvalumab.
There is also a move of 5% concessional duty on six additional life-saving medicines. Furthermore, the Government has announced the addition of 37 more medicines under the Patient Assistance Programmes, which will also benefit from customs duty exemptions. This move is aimed at improving access to critical medications for patients, particularly those with severe chronic conditions.
While the Government of India is putting in all efforts, the healthcare industry has to work on innovative financing options, such as crowdfunding platforms for healthcare, dedicated health savings plans, and outcome-based insurance coverage for high-cost treatments. By enhancing early screening programmes for cancers, expanding access to genetic counselling for rare diseases, and promoting patient support networks, we can create a more holistic ecosystem of care that combines financial protection with emotional and clinical support. Collaboration across sectors will be key to ensuring that life-saving treatments are both accessible and affordable.
What is Aster DM’s role in making healthcare more accessible and affordable, and how does it plan to contribute to universal healthcare in India?
Aster DM Healthcare has always prioritised accessibility, affordability, and quality across its network in India and the GCC region. In India, we are actively expanding our presence across tier-2 and tier-3 cities, ensuring that advanced healthcare services are not confined to metropolitan areas. Our pan-India network of 19 hospitals, 254 labs, and 203 pharmacies already provides multi-layered access across primary, secondary, and tertiary care, supported by digital health innovations and community outreach through Aster Volunteers. Through initiatives such as Aster Volunteers, we deliver free health camps, screenings, and health awareness programmes to underserved populations.
Aster is also increasingly adopting technology to improve access — from teleconsultations to AI-driven diagnostics — reducing the need for physical visits and lowering the cost of care. Our collaborations with government programmes, such as Ayushman Bharat, enable us to provide quality care to economically vulnerable populations.
Additionally, we are exploring innovative care models, including day surgery centres, home healthcare services, and preventive care packages, to make healthcare more affordable while maintaining high clinical standards. Our long-term vision aligns with the national goal of universal health coverage — ensuring no individual is denied care due to financial constraints.
