Pune: The problem was staring us in the face, as was the solution, but no one (at least in Pune) ventured to fix it. Consider this. You are sick and the doctor advises several tests that can help diagnose the cause. But these tests cost a fortune. So, what do many, especially the poor or even the middle class families, do? It’s not uncommon that such families forgo doing the tests as they are expensive.
Unless it’s an emergency situation. So, a magnetic resonance imaging (MRI) — a non-invasive medical imaging technique used in radiology to examine organs, tissues and skeletal system, will be done in cases of emergency, like if the person’s skull is cracked open and bleeding, but not if the head shows no visible signs of injury. Never mind that a slight knock in the “right” place could damage some nerve and make the person lose a vital function such as sight, hearing loss and so on. And without an image, a doctor cannot diagnose the problem accurately. Very obviously the problem is the cost of life-saving diagnostic tests.
While we do have charitable trusts and government-run facilities that help with the cost of such diagnostic tests, they are overburdened and mostly cannot afford to offer satisfactory service. Private players bear the huge capital cost of the equipment that is often cited as the cause for high charges. So, is it possible to offer affordable costs with great service in the diagnostic industry? Seemed pretty unlikely.
Till 36-year-old Chetan Rawal, who had done his Bachelor of Science (BSc) in microbiology and was working at the pharmaceutical giant Roche Diagnostic Lab, experienced this situation day in and day out. He saw the impact of high cost of diagnostic tests on people.
{{/usCountry}}Till 36-year-old Chetan Rawal, who had done his Bachelor of Science (BSc) in microbiology and was working at the pharmaceutical giant Roche Diagnostic Lab, experienced this situation day in and day out. He saw the impact of high cost of diagnostic tests on people.
{{/usCountry}}“The cost of diagnostic tests is borne by people as insurance too does not cover it. The government-run facilities fail to offer quality, so the trust factor is low. It is obvious that the cost of a CT (computed tomography) scan or even different blood tests can be forbidding to most people. But it was clear to me that the only way to solve this problem was to offer these tests at a much lower cost and give them the service that private diagnostic labs can afford,” he said.
Lower the cost of diagnostic tests, how? The equipment, rent and salaries to medical and non-medical staff were the three main cost factors. Could it be that Chetan could procure the equipment at competitive costs? “That’s simply not possible for a startup like mine. Any diagnostic centre cannot run without people, so that cost was non-negotiable too,” he said.
The only way he felt one could offer the best-in-class diagnostic services to everyone was by managing the rent.
“Rent is a major cost component in our business, almost 30%-50%. I felt that if I could tackle this aspect then it could be possible to give people what they really deserve. Why should people spend a fortune on tests?” he said.
The question now was how.
How would he manage to build a diagnostic centre bypassing the cost of real estate? But as the renowned English playwright and poet William Shakespeare said, “there comes a time in the affairs of men, which when taken at the flood leads to fortune”, and that time came, in 2022.
“The Pune Cantonment Board (PCB) hospital had put out tenders for its pathology lab. I saw the possibility immediately. If I won that contract, I could manage the service aspect. Since I offered the lowest price, I bagged it,” he said. The hospital was offering only 50 tests, but with the collaboration with Bharakt Diagnostics, Chetan’s startup, their scope increased to 500.
“Since we offered a large range of tests, people did not have to go to other centres for their check-ups,” he said.
And that laid the foundation stone for Bharakt Diagnostics where Chetan aimed to offer as he says “kaam bhari, daam sarkari” (costly service, nominal price). With the rent out of the way at the PCB hospital, Chetan knew what needed to be done to offer the best service he could.
“In this business we need two categories of staff. Medical doctors who will read the reports and do the tests, and the support staff. I have always felt that people who visit diagnostic centres are not given enough information. They do not know what is expected of them. So, if a person has to do an MRI, for example, our support staff will explain what it is, why blood tests are required and so on. Our centres are clean and posh. Not once will you feel it is a government-run facility. Being on hospital premises means that there is a captive set of consumers,” he said.
One is not enough
After setting up Bharakt Diagnostics at the PCB hospital premises, Chetan understood that growth will come in the same manner. Without the burden of rent, it becomes possible to offer world-class services at affordable cost. He worked on a while to get a collaboration with the Pune Municipal Corporation (PMC) for their 75-bed hospital at Yerawada.
Early this year, Bharakt Diagnostics set up its second facility at the PMC-run Rajiv Gandhi Hospital in Yerawada. It has state-of-the-art equipment – AI backed UI-MRI machine, an 80 slice CT scan machine with automated injector for precise and efficient imaging and a fully automated path lab with advanced instruments for accurate and timely diagnostic testing. In addition to this, patients can wait in comfort. They can watch their favourite movies and shows on over-the-top (OTT) platforms and YouTube videos while doing an MRI scan, thereby reducing the fear and claustrophobia many people feel.
“An MRI at a privately-run centre can cost ₹10,000- ₹8,000 but at our centre it is just ₹2,500. Through these collaborations with government authorities, we have succeeded in offering world-class services at lower costs making it accessible to more people,” he said.
Later, Bharakt Diagnostics partnered with Guru Nanak Medical Foundation that provides primary healthcare facilities at the Hollywood Gurudwara in Camp area.
Competition
“The market for diagnostics in India is pegged high at ₹70,000 crore making it quite an attractive business for any player with deep pockets. There are several big players and Quest Diagnostics, an international player, tried cracking the Indian market but exited within a few years. Our innovative approach that combines affordability with high-quality service has given us a unique edge,” he said. Meanwhile, Bharakt is focussed on using innovative technologies and providing world-class service at affordable cost to customers.
Money
Chetan does not wish to reveal the investment he has made in his business. “We have invested a huge sum and plan to raise funds to enable future growth. We plan to build more such centres across the city as well as all over the country.”
Bharakt Diagnostics has demonstrated that with the right strategy, healthcare barriers can be broken. “Our company’s vision is that diagnostic tests should no longer be a privilege, but a basic healthcare necessity accessible to all,” he said.