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Praxis Global Alliance Launches White Paper on Healthcare in Tier 2 and 3+ India

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Praxis Global Alliance, a global management consulting firm, has unveiled a white paper titled “Disparity to Parity: Advancing Quality, Affordability and Accessibility in Tier 2 and 3+ India through Technology” at the ASSOCHAM Diagnostics Conference in New Delhi. The report was presented in the presence of notable members of the honorary advisory committee, including Dr. Ravi Gaur, Founder and Director of DRG Path Lab; Dr. Avinash Phadke, President and Mentor at Agilus Diagnostics; Dr. Rajeev Gautam, Corporate Officer at HORIBA; and Anjan Bose, Founding Secretary General of NATHEALTH and former President of Philips Healthcare and Consumer Lifestyle.

The report highlights the potential of technology to address disparities in healthcare delivery. It offers insights into the Indian diagnostics market, valued at $15 billion in FY24, which is projected to grow at a compound annual growth rate (CAGR) of 14%, fueled by increasing urbanization, improved test penetration, and heightened health awareness.

A significant focus of the report is the gap between Tier 1 and Tier 2+ cities, noting that over 65% of diagnostic laboratories are located in Tier 1 and 2 cities. This leaves Tier 2+ cities with substantial challenges. The report suggests that technology-driven solutions could create significant opportunities to bridge the gap in these underserved regions.

The white paper examines key technological trends, including artificial intelligence (AI), blockchain, smart labs, genetic testing, mHealth, telemedicine, mobile diagnostics, and smart wearables, which have the potential to improve access to quality healthcare and create a more equitable healthcare system.

Tier 1 cities, home to only 9 percent of the population, contribute approximately 37 percent to the GDP. In contrast, more than 540 urban centers are classified as Tier 2 and Tier 3+ cities. The report highlights that Tier 3+ cities are expected to accommodate an additional 46 million people by 2030, further underscoring the need for investment in healthcare infrastructure in these areas.

Speaking at the launch, Aryaman Tandon, Managing Partner for Healthcare at Praxis Global Alliance, said, “The launch of this white paper comes at a time when India’s healthcare ecosystem is undergoing rapid transformation. With government initiatives, rising health awareness and an increasing focus on preventive care, the role of diagnostics in improving health outcomes has never been more critical”.

The report calls for stakeholders to align on a shared vision and make bold investments in technology and innovation. It advocates for a healthcare system that addresses existing disparities while setting the foundation for a more equitable future, particularly in Tier 2 and 3+ cities. “Together, we can build a healthcare system that not only addresses current disparities but also sets the foundation for a healthier, more equitable future for all, particularly in the rapidly growing Tier 2 and 3+ cities”, Tandon added.