We'll develop home healthcare segment from scratch: Philips Homecare CEO

Richa Singh says she hopes to get some support from the government and insurance companies

Global electronics major Philips has started home healthcare business in India. The company has been building the business from scratch in the past 18-24 months. It is currently working in cities including Delhi, Mumbai, Pune, Bengaluru, Hyderabad and Chennai. In Chennai, the company launched its operations recently through a Chennai-based player NORMS. It is also planning to launch chemo and dialysis services at home in near future. In an interaction with Gireesh Babu, RICHA SINGH, CEO of Philips Homecare spoke about the company's business model, which is on a slow, but steady expansion, challenges and future opportunities for the company, including for tie-up with regional players. Edited Excerpts:

In the home healthcare segment, India is the first market for Philips. What are the challenges you have faced — both internal and external?

Philips has a big brand to take care of, and we need to be foolproof in everything. We can't afford to let things go wrong. Hence, we have made our testing protocols are very strong. We don't expand that rapidly. Some of the doctors are doing chemo at home, for instance, but when Philips does it, we will make sure that standard operating procedures (SPOs) are in place. There is an adequate backup and we test them before commercialising. We don't tie up with hospitals, we don't share revenue, which some of our competitors are doing now. This may seem like a hurdle, but we are growing through word-of-mouth. Patients are happy with us and we are getting referral calls from the cities where we have been present. 

The home healthcare industry is rather fragmented with more regional players working a few cities. Are you working with regional service providers across the country?
 

Not yet. We are exploring that model, but we will have to make sure that those regional players stand for quality and commitment. More than due diligence, we have to look at what they have delivered so far and what their aspirations are. It is not a very profitable sector as compared to others due to the social cause. Of course, some money should be there for sustainable business, but not for the quick-money attitude. 

Where is this business evolving towards?

Five or ten years down the lane, most of the simple treatments done at hospitals will be done at home, especially in India and other countries. Hospitals will be a place for diagnosis, surgeries, acute care etc. A simple IV or an infusion, palliative care, will be done by the home healthcare industry. Technology is making this possible and doctors are comfortable with it.

How affordable would it be?

The cost of home health care would be Rs 5,000-6,000 per day as against Rs 15,000-20,000 in a hospital. The cost is 30-40 per cent lower compared to a hospital treatment.

Would you look at acquiring a company in this segment?

It is too early to comment. For now, we are thinking about organic growth.

What are your targets in terms of home healthcare business?

In terms of treatment, we will be growing from around 4,000 patients served last year to around 12,000 patients this year. Our team is growing rapidly. We hire around 3-4 nurses every day and end of March we will double our number of nurses. There are over 200 doctors. We work with the physicians whom the patients are already consulting with.

How serious is the lack of availability of adequate manpower?

It is very serious. Manpower is what will ensure the quality you deliver at home. We are reaching out to colleges from where we can recruit, train and deploy. The shortage is in terms of quality nurses and paramedics. 

What are the other challenges?

We want insurance companies to embrace us. We would also like to get some help from the government. Right now we are restricted to working with private doctors and private hospitals. There is a big opportunity to work with the government hospitals and doctors as well. That is where the potential lies. This can lessen the load of hospitals like AIIMS in Delhi, where a lot of patients do not get a bed for their treatment. 

In terms of technology for the home healthcare business, what new you have started with Philips?

As of now, our respiratory devices are not connected, but the patient is connected via a Philips monitor, which is connected and using our own software. Over the next one or two years, we will introduce connected devices. We are not in a rush to do that since the cost might also go up. We are open to working with all kinds of device makers. We are also working with other software developers.