How the Recession in the USA is Expected to Impact the Health-Care Industry in India

By Ms. Ava Tripathy

It's no secret that the US economy and indeed the global economy isn't in great shape in 2022. With negative growth in the first two quarters of the year and a third quarter likely to follow, the US is now officially in recession. But how will this recession affect the healthcare sector in India, which is already struggling with the lingering effects of the COVID-19 pandemic? The healthcare industry in India includes hospitals, healthcare facilities, clinical trials, outsourcing, telemedicine, medical tourism, health insurance, and medical equipment The industry is growing at a tremendous pace due to strengthening coverage, services, and increasing spending by both public and private entities.

A

hangover from COVID-19

The lasting impact of the COVID-19 pandemic should not be underestimated. A significant proportion of those infected with the virus has long-term effects, including mental health problems, organ damage, and general fatigue. This continues to put pressure on health services. In addition, many people found themselves unable to work and lost their health insurance. Others with pre-existing conditions did not have access to basic treatment during the crisis, resulting in their conditions worsening. Even in normal economic times, these issues would pose problems for the healthcare industry as a whole, but the recession is expected to make things significantly worse.

Personnel issues

Healthcare workers on the front lines have been hit hard by the COVID-19 pandemic. As a result, mortality and long-term effects were highly prevalent among them. Medical staff has also been under great pressure during the pandemic, leading to increased cases of burnout, and unprecedented numbers leaving the profession altogether. The problem persists, with 47% saying they will leave by 2025. A recession and high inflation will make it difficult to retain these skilled people without significant incentives.

Clinical productivity

Labour productivity in healthcare has declined significantly over the past twenty years, with employee costs rising much faster than overall industry growth. Considerable underutilized capacity was identified in physician schedules, such as patients not showing up for appointments. Some technological advances can reduce this idle capacity and increase the productivity of the entire industry. EHR systems play a key role here as they reduce the need for repeated patient evaluations due to incorrect diagnoses and medication prescriptions. Of course, the need for increased clinical productivity must be weighed against the risks of burnout for clinicians at all levels, as this could have the opposite effect than intended, increasing the cost of covering burnt-out staff and recruiting new doctors.

Conclusion

In short, the recession presents many challenges to the healthcare industry, with patients unable to afford the healthcare they need, inflationary pressure on budgets, and other employee retention issues. However, if the industry can modernize, and adopt new technologies and work practices, including increased use of electronic systems such as EHRs, these problems can be minimized.

Simplified administration

About a quarter of the money spent on Indian health care currently goes to administration. There are currently efforts to reduce this and we can expect the recession to increase the pressure. Ways to achieve savings include reducing the manual workload of nurse managers and doctors, increasing the use of electronic health records (EHRs) can help with this. In addition to reducing the likelihood of missing notes, they reduce the amount of time spent searching for details and reduce the likelihood of incorrect prescriptions and misdiagnoses. Although there is a cost to implement, EHR systems can provide a significant return on investment by delivering better outcomes for all stakeholders, including patients, providers, and employees.

the impact of the recession in the USA on the healthcare industry in India is complex and multifaceted. The healthcare sector in India is already facing a range of challenges, including inadequate infrastructure, limited funding, and a shortage of healthcare professionals The economic slowdown in the USA is likely to exacerbate these challenges, particularly by putting pressure on healthcare budgets and reducing patient affordability. However, if the industry can embrace new technologies and work practices, there are opportunities for modernization and improved efficiency. For example, the increased use of electronic health records (EHRs) can help reduce costs and improve patient care.

The healthcare industry in India must remain vigilant and adaptable to navigate the challenges posed by the recession, and seize opportunities to enhance their services and create new partnerships that can help sustain the sector in the longterm.

Ultimately, the health and well-being of patients in India will depend on the ability of the industry to adapt to changing economic and technological landscapes, and provide affordable and high-quality care to all.