Affordplan's Fintech Approach: Dr Pruthvinath Kancherla on Tackling Healthcare Costs and Expanding Access
By Arunima Rajan
Affordplan, a rising fintech player in healthcare, is shaking up the sector by making healthcare more affordable through innovative solutions. From instant cashback on OPD and IPD payments to savings on surgeries and lab tests, the company's Swasth product takes it further with free medicine delivery, wellness brand discounts, zero-EMI insurance, and interest-free loans.
In an exclusive chat with Arunima Rajan, Dr. Pruthvinath Kancherla, co-founder of Affordplan, delves into the company's journey, the evolving trends in healthcare financing, and how fintech startups like theirs are improving India's healthcare delivery model.
What inspired you to launch Affordplan, and in what ways does it seek to address the pressing issue of healthcare affordability in India?
We realized that the healthcare landscape is highly fragmented. Insurance penetration is low, which means many people struggle to get quality healthcare, and most private medical expenses are out of pocket, leading to unaffordability. According to the National Library of Medicine's 2022 report, out-of-pocket health expenditure (OOP) expenses account for approximately 62.6% of total health expenditure in India, making it one of the highest globally. High out-of-pocket healthcare costs push many households into poverty. Hence, we identified the need for an intervention that helps hospitals and patient families. We also create awareness about high healthcare costs and educate patients on how to find financial relief. Our offerings include instant cashback on OPD and IPD payments, savings for future surgeries, and lab tests. The Affordplan SwasMedicine further supports patients with free medicine delivery, wellness brand discounts, zero-interest EMI insurance, and interest-free loans, making healthcare more affordable and accessible.
Could you delve into the mechanics of Affordplan's Swasth card? What distinct advantages does it bring to patients navigating the complexities of healthcare costs?
Affordplan Swasth is a solution extended to patients that helps them manage medical expenses through online payments, cashback points, medical loans, and micro-insurance. This support enriches a patient's experience at the hospital and extends beyond the hospital with at-home medicine delivery and lab sample pick-up, bringing quality drugs and check-ups to their doorstep. Using Affordplan Swasth, patients can make payments at the hospital using a simple scan and pay feature with instant cashback credits and enjoy a wide array of wellness offers that the platform offers.
As you observe the healthcare financing landscape in India, what emerging trends are capturing your attention?
Many new trends are emerging in health financing in India. Integratipatient's Internet of Things, Machine Learning, and Artificial Intelligence will ensure diagnostic accuracy, personalized treatment, and cost reduction through targeted interventions. Increased use of Electronic Health Records and Personal Health Records will improve data management and coordination for cost savings and better financial planning. Other government initiatives, ABHA-ID integration, point-of-care diagnostics, digital diagnostics, and remote medicine delivery, are also gathering speed. Besides, at-home/bedside care is an increasingly in-demand industry with the rising adoption of palliative care.
How does Affordplan's approach drive hospital profitability and foster deeper customer loyalty?
Affordplan partners with hospitals to improve patient experience and retention, increasing loyalty and profitability. By simplifying the financial process, savings on healthcare bills, zero-interest loans, and zero-interest EMI insurance Affordplan makes healthcare expenses more manageable and, therefore, less stressful. Such transparency and simplicity of payment create trust and security, thus encouraging patients to come back, use more services, and recommend the hospital to create more footfalls. This means fewer payment disruptions and more consistent cash flow for hospitals, improving efficiency and profitability without discounts or deferred payments. This partnership strengthens patient satisfaction and loyalty, reinforcing the hospital's reputation as a trusted provider.
How do you envision expanding Affordplan's footprint and enhancing its offerings shortly?
Looking ahead, we envision expanding Affordplan's footprint by continuing our distributive approach to healthcare. We aim to improve patient journeys and reduce healthcare costs across multiple facets rather than focusing on just one area. We aim to play a significant role in partnering with hospitals to deliver care at costs lower than inflation. Over the next five years, we plan to build one of the country's largest networks of hospital hospital providers. In 3 to 4 years, we aim to integrate critical areas—curative care with hospitals, preventive care with wellness companies, and financial protection with insurance providers. We'll continue developing collaborative models that ensure all stakeholders benefit while reducing healthcare costs.
Do you foresee a meaningful role for public-private collaborations in advancing healthcare affordability? How might Affordplan contribute to such efforts?
Yes, we foresee undertaking a public-private partnership business model in the country. We believe such a model will help us advance healthcare affordability by combining both sectors' resources, expertise, and innovation. We have extensive experience tackling the complexities of large-scale operations, including managing manpower across the country, all supported by continuously evolving technology. Partnerships can significantly enhance access to care, streamline processes, and offer cost-effective solutions. The public-private partnership will allow greater reach within the country, helping solve India's most pertinent healthcare access problems and helping all strata of society.
With Affordplan targeting a Gross Transaction Value of over ₹1, sectors by FY25, what strategies are in play to realize this ambitious goal?
To achieve a Gross Transaction Value of over ₹1,000 crore by FY25, we are expanding partnerships with hospitals of all sizes, enabling access to a broader patient base and driving higher transaction volumes. We are also deepening collaborations with insurance companies and wellness brands to offer customized insurance plans and low-interest medical loans for India's savings on wellness products.
This will be achieved by strengthening our product portfolio and gaining insight into critical demographics, enhancing user experience and financial processing. Key alliances, marketing investments, and awareness drives will ensure profitability while setting the seal on our market-leading position in healthcare fintech.
In what ways does Affordplan's technology platform enhance the efficiency and accessibility of healthcare financing for the broader population?
We have multiple innovations that enhance the efficiency and accessibility of healthcare financing. Our platform has an in-built digital payment option, which offers a safe, seamless and easy payment experience. This also allows the cashback points to be credited instantly to the patient immediately. All this makes it easier for users to manage healthcare expenses, enjoy a sense of entitlement, and connect with the hospital care provider. We also provide customized lab packages and consultant bundles with hospitals to meet individual user needs. Our merchant Software-as-a-Service (SaaS), app infrastructure, call centre support, and on-ground presence help in customer relationship management, quickly adapting to changes in the market, introducing new features, and efficiently expanding services.
Reflecting on Affordplan's journey so far, what tangible impacts has the platform made in improving access to healthcare?
We have a robust network of over 100 hospitals comprising approximately 16,000 beds. Since June 2020, the platform has onboarded half a million families, ending with 2.5 million individuals, achieving the lowest customer acquisition costs (CACs) in its category.
The platform has processed a Gross Transaction Value of INR 450 crores and saved patients INR 40 crores. We facilitate timely healthcare interventions through health-check reminders and inclusive offerings.
Affordplan issues more than 15,000 new insurance policies every month, increasing insurance penetration. About 33% of our users in the underserved segments are women. We employ a large number of women in our workforce, and more than 90% of our field representatives are women.
As a brand deeply rooted in the Indian context, how does Affordplan tailor its solutions to address the specific needs of the local healthcare market?
Affordplan helps create a loyal and engaged user base or communities for a hospital, establishing them as service providers of choice within their catchment and at home. Patient health is prioritized through app engagements, recommendations, and timely calls, ensuring hospital recall during seasonal changes and local diseases.
Affordplan offers flexible savings and instalment options for different income levels and payment capacities. It partners with local healthcare providers to facilitate savings and cashless transactions, making it easier for patients to receive care without immediate large payments. This approach bridges the gap between healthcare costs and affordability for the Indian population.
Looking forward, what role do you see fintech platforms like Affordplan playing in shaping the future of healthcare delivery in India?
We make healthcare delivery in India more accessible and affordable. We believe that players like us, which offer financial interventions, will help facilitate a healthcare ecosystem where financial barriers are significantly reduced, allowing more people to access the medical care they need without the burden of immediate, out-of-pocket expenses. Integrating fintech solutions into the healthcare journey will contribute to a sustainable and equitable healthcare system in India, where quality care is accessible to all, regardless of their financial background.
How does Affordplan ensure it reaches underserved populations, particularly in the country's more remote and rural areas?
Affordplan has no eligibility or underwriting requirements, which makes it truly inclusive. It breaks demographic barriers and attempts to enrol even the most marginalized sections of society using advocacy and social referral. It is a known fact that underserved populations rely on word of mouth as their circle of influence for decision-making. Affordplan allows open usage for friends and family to benefit from cashback rewards and wellness offers. Simple choices such as preferred language, localized collateral and instructions, and physical staff for payment assistance help ensure that segments with limited digital literacy can also benefit from the platform.