Chennai: A household in the metro spends an average Rs 30,500 per year on just out-patient medical requirements, double to that of a tier I household.
The amount, on an average, is spend on OPD consultations, medicines and diagnostics, which largely are paid out of the pocket even in case of people who have health insurance. This spend does not include hospitalisation costs and those involving surgeries or similar procedures, finds RedSeer Consulting. The money spent on these requirements by a household in metro is also double to that of Rs 14,500 spent by a similar household in the tier I city.
Medicines account for 40 per cent of the out-patient healthcare spend in a metro, followed by consultation at 37 per cent and diagnostics at 23 per cent. An average household goes to a diagnostic centre 10 times a year and spends an average of Rs 714 per visit.
In case of consultation, the frequency is 21 times and the average cost per visit is Rs 538. The household buys medicines 22 times a year for an average of Rs 538.
In case of a tier I household, medicine accounts for 42 per cent of the total expenses. Though the frequency of purchase is higher at 26 times, the cost per purchase is almost half at Rs 235. Consultations account for 40 per cent of the cost and the household visits the doctor 22 times but pays only Rs 259 per visit.
Diagnostic tests are much cheaper and less availed in tier I cities. They account for 18 per cent of the total cost, but patients take just six tests a year for an average Rs 424 per test.
“The OPD charges are higher in a metro hospital or clinic compared to that in a tier I city. Same is the case with diagnostic tests,” said Ujjwal Chaudhry, engagement manager, e-tailing, RedSeer.
Further, mostly chronic patients drive out-patient spend as they go for regular consultations, diagnostic tests and consume medicine regularly. The number of such chronic patients is comparatively higher in metro cities compared to smaller cities. This too makes the total expenses double in metros, he added.
This is also reflected in city-wise differences in medical expenses. According to RedSeer, a Delhi-NCR household spends the highest among metros and Amritsar accounts for highest expenses among tier I cities. Among the metros, Kolkata and Coimbatore among tier I cities spends the least.
Hence, the med-tech players target the metros with online medicine delivery having the highest market size. The online medicine delivery players are also seeing a clear distinction between customer and consumer. Majority of the customers of online pharma are young and digital savvy people.
But medicines are largely consumed by the older family members. The young tech-savvy customers, who are not able to take care of the needs of their parents due to paucity of time, are finding online pharma companies handy. They can procure the medicines without taking out much time from their busy schedule.
Among online pharmacy deliveries, only 40 per cent is consumed by the customer, while the remaining 60 per cent is meant for the family members.
