Digital Healthcare Service Providers
Digital Healthcare Service Providers
Business Model Description
Invest in B2B and B2C online platforms and applications that offer digital healthcare services and preventive healthcare information. Examples of companies active in this space are:
Eclinic LLC, founded in 2016 as part of ICT Group (consists of 52 sub-companies and provides their service to 2.8 million people in Mongolia), is a digital clinic that offers digital healthcare services, such as making appointments with doctors, getting test results, and receiving on-call healthcare services.
Clinica is a telemedicine service start-up since 2021 aiming to provide digital healthcare services of making appointments, online consultations, and other telemedicine services. Clinica start-up managed to get USD 210,000 of funding from the Shark Tank Program.
Emch App is a mobile-based online platform where you have access to a wide range of services such as online doctor consultation, AI based online symptoms checker, and trusted healthcare information.
Expected Impact
Provision of digital health services through an integrated system, ensuring last mile reach for quality healthcare delivery.
How is this information gathered?
Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.
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Country & Regions
- Mongolia: Ulaanbaatar
- Mongolia: Bayan-Ulgii
- Mongolia: Govi-Altai
- Mongolia: Uvs
Sector Classification
Health Care
Development need
Mongolia has one of the highest mortality rates in the Western Pacific due to high prevalence of non-communicable diseases (NCDs), (1) which account for 85.9 percent of all deaths in Mongolia. (3) The highest rate of cancer deaths for men and women combined was in Mongolia at 175.9 people per 100,000. (2)
Policy priority
Regarding health, vision 2050 aims to encourage citizens to practice healthy habits and an active lifestyle, and to develop a quality, accessible and effective healthcare system. (4)
Gender inequalities and marginalization issues
Life expectancy for men is much lower than that of women in Mongolia, i.e. 65.4 vs. 74.1. (5) Less than 20 percent of uneducated or under-educated disabled women receive reproductive health information. (6) Children living in a highly polluted district of central Ulaanbaatar were found to have 40 percent lower lung function than children living in rural areas. (2)
Investment opportunities introduction
Mongolia prioritizes improving the health system by aligning financing of the health sector with the quality of healthcare and services. (7) Thus, investment in the health sector is highly encouraged.
Key bottlenecks introduction
As Mongolia is a sparsely populated country in a vast land, providing quality health care to disadvantaged and remote communities has been challenging in Mongolia.
Health Care Providers
Development need
Delivery of quality health services is challenging due to the country’s extremely low population density scattered across a large territory. Factors including remoteness, economic difficulties, internal migration, unemployment, and carefree attitude toward seeking quality healthcare, result in a large number of people who are not receiving the health services which they need. (8)
Policy priority
Vision 2050 states that the State will aim to introduce evidence-based modern diagnostic and treatment techniques and technological advancements, and create a financing and insurance system based on the quality and performance of health care and services. (4)
Gender inequalities and marginalization issues
Urban poor and rural people lack access to basic social services including quality healthcare due to poverty and spatial remoteness. Inadequate reproductive healthcare access to information and services leads to a high adolescent birth rate, abortion rate, and incidence of syphilis. (9)
Investment opportunities introduction
Many Mongolians travel abroad to avail medical services (10) and incurred ~USD 44 mn on health-related travel costs in 2020, as per Bank of Mongolia data. Thus, increased healthcare delivery services through digital medical platforms would contribute to reduction of health-related travel costs abroad.
Key bottlenecks introduction
Low density and scattered population across regions in Mongolia makes it challenging to deliver health services to rural and remote areas. (11)
Health Care Delivery
Pipeline Opportunity
Digital Healthcare Service Providers
Invest in B2B and B2C online platforms and applications that offer digital healthcare services and preventive healthcare information. Examples of companies active in this space are:
Eclinic LLC, founded in 2016 as part of ICT Group (consists of 52 sub-companies and provides their service to 2.8 million people in Mongolia), is a digital clinic that offers digital healthcare services, such as making appointments with doctors, getting test results, and receiving on-call healthcare services.
Clinica is a telemedicine service start-up since 2021 aiming to provide digital healthcare services of making appointments, online consultations, and other telemedicine services. Clinica start-up managed to get USD 210,000 of funding from the Shark Tank Program.
Emch App is a mobile-based online platform where you have access to a wide range of services such as online doctor consultation, AI based online symptoms checker, and trusted healthcare information.
Business Case
Market Size and Environment
< USD 50 million
10% - 15%
As of January 2022, Mongolia reported 2.16 mn internet users. (12)
As per Statista, digital health market in Mongolia was projected to reach USD 11.38 mn USD in 2022. (13)
Revenue is expected to grow at CAGR of 14.54 percent during 2022-2027, resulting in a projected market volume of USD 22.44 mn by 2027 in Mongolia. (13)
Number of users of digital health is projected to reach 1.49 mn people in 2027. (13)
Indicative Return
> 25%
Experts from a digital clinic company reported that their return on investment would be ~70 percent.
Digital health market revenue is projected to increase up to USD 22.44 mn while the the average revenue per user (ARPU) is expected to reach USD 35.02 in 2027. (13)
Investment Timeframe
Short Term (0–5 years)
As per private consultation with the digital healthcare service provider, they reported that their investments have taken less than 5 years to turn into a profit.
Ticket Size
Seed funding can be lower than USD 500,000 and subsequent rounds of funding can depend on the scale of expansion. Clinica start-up company received a funding of USD 210,000 from 2 investors of Shark Tank program at the beginning of 2022.
Market Risks & Scale Obstacles
Business - Supply Chain Constraints
Business - Supply Chain Constraints
Impact Case
Sustainable Development Need
In Mongolia, one in every two deaths is attributable to either cardiovascular diseases or cancer in 2021. (15) Improved access to healthcare services and information in relation to digital clinics and telemedicine services will help to reduce the NCD rates.
Mongolian households have high out-of-pocket (OOP) health expenditure share reaching almost 1/3 of the total health expenditure and contributing to an 8 percent increase in poverty levels. (16) Increased access to healthcare services and information would reduce the out of pocket healthcare costs.
The availability of primary health care services within health facilities is very low while family health centers in general have a poor capacity (38.4 percent). (17) Telemedicine would be the bridge between people in need and health centers with better capacity and technical availability.
Gender & Marginalisation
In 2021, 58.3 percent of the deaths due to cardiovascular diseases and 56 percent of the deaths due to cancer are men. (15) The overall health inequality can be reduced in relation to improved access to healthcare services and information through digital clinics and telemedicine services.
NCD rates are higher in rural and remote areas of Mongolia (18) where access to healthcare services are more problematic. Thus, digital healthcare services could help in resolving this issue.
Inadequate reproductive healthcare access to information and services leads to high adolescent birth rate, abortion rate, and incidence of syphilis. (9)
Expected Development Outcome
Reduce health service inefficiencies, and patient line-ups and save time for both parties.
Improve healthcare service quality and enable its nationwide access which ultimately contributes to the well-being of Mongolians and reduction of NCDs.
Improved access to reproductive healthcare services and information among youth. Consequently, reduced rate of adolescent birth and abortion.
Gender & Marginalisation
Improved healthcare service delivery for those living in underserved regions, as most of the healthcare providers are based in Ulaanbaatar.
Provide preventive, primary and secondary healthcare services to people with limited access to the public healthcare system in peri-urban areas
Constant availability of healthcare services for mothers and their infants or pregnant women.
Primary SDGs addressed
3.4.1 Mortality rate attributed to cardiovascular disease, cancer, diabetes or chronic respiratory disease
3.1.1 Maternal mortality ratio
3.2.1 Under‑5 mortality rate
3.2.2 Neonatal mortality rate
3.4.1: As of 2021, death rates due to cardiovascular disease, cancer and respiratory diseases per 10,000 people are 18.9, 12.9 and 2.9, respectively. (19)
3.1.1: As of 2021, maternal mortality per 100,000 births is 94. (20)
3.2.1: As of 2021, 13.9 per 1000 births.
3.2.2: As of 2021, 8.2 per 1000 births
3.4.1: To reduce premature mortality from NCDs in 2030 by one-third. (21)
3.1.1: By 2030, the target is 70 per 100,000 birth
3.2.1: Information not available
3.2.2: 8 per 1000 births in 2030
Secondary SDGs addressed
Directly impacted stakeholders
People
Gender inequality and/or marginalization
Planet
Corporates
Public sector
Indirectly impacted stakeholders
People
Gender inequality and/or marginalization
Planet
Corporates
Public sector
Outcome Risks
Due to low digital literacy levels, less educated may not be able to adopt digital health services as fast as others, which would further deepen the level of inequality.
Online medical consultation may lead to inaccurate assumptions of a patient's medical condition or misinformation which could have an adverse effect.
Emergency support may not be easily accessible for those in remote areas.
There could be a risk of data security and information confidentiality.
Gender inequality and/or marginalization risk: Traditional mindset in rural and semi-urban communities might not accept the usage of digital healthcare services.
Impact Risks
Delivery of inadequate primary and secondary healthcare services to the general public due to an inefficient healthcare system.
Cyber crimes could target the digital healthcare service users.
Gender inequality and/or marginalization risk: Vulnerable communities in rural areas may not receive as sufficient healthcare services as the people in urban areas due to inferior internet connection.
Impact Classification
What
Digital healthcare services to provide improved access to healthcare services, leading to reduced inequality.
Risk
Growing number of unofficial telemedicine platforms under social media portals could hamper the growth of official health platforms, thereby resulting in serious health risks.
Contribution
With the help of telemedicine, over 1800 lives of mothers and newborns are saved through the network access. (11)
Impact Thesis
Provision of digital health services through an integrated system, ensuring last mile reach for quality healthcare delivery.
Enabling Environment
Policy Environment
In Vision 2050 clause 2.2.28 states the investment towards medical technology, 2.2.39 states the access of healthcare services to people living in remote areas with electronic health system, and clause 9.1.16 states that telemedicine will be introduced in remote districts and satellite cities. (4)
(Policy document): In Five-Year Development Guidelines 2021-2025, clause 2.2.6 states that the government will expand electronic services in the health sector, create a national health database, and fully introduce remote technology in daily diagnosis and services. (23)
In the Government of Mongolia's medium term development plan 2020-2024 and its Action Plan, clause 2.1.6 states that a unified health database will be created, and an electronic early detection and recall system will be created for local diagnosis and treatment.
Financial Environment
Financial incentives: Government-funded SME loans with low interest are available for digital healthcare providers.
Fiscal incentives: Healthcare services, including digital healthcare and telemedicine, are subject to VAT exemption. (24)
Other incentives: To support the continuous medical education of rural physicians who provide digital healthcare services, an e-learning platform was developed and 249 medical specialists are registered as active users and received online education. (11)
Regulatory Environment
(Regulation): Order No. 330 of the Minister of Health (2013): Regulation on Telemedicine National Network states that quality telemedicine services should be equally provided to anyone based on their needs, considering data privacy and safety.
(Regulation): Law on Health (2011) regulates the role of enterprises, organizations, officials and citizens in protecting citizens' health and ensuring the right to receive health care and services, as well as the relationship with the activities of health institutions and employees.
(Regulation): Law on Medical Services and Aid regulates relations related to the organization, management, financing and supervision of medical care and services provided to the population.
Marketplace Participants
Private Sector
Corporates: Eclinic LLC (ICT Group), Clinica, Mend, Emch app, Teledoc.mn platform, Intermed Hospital Investors: And Global LLC, ICT Group
Government
Ministry of Health, Ministry of Digital Development and Communications, National Center for Public Health
Multilaterals
World Health Organization (WHO), United Nations Population Fund (UNFPA), United Nations International Children's Emergency Fund (UNICEF), WorldBank, Asian Development Bank (ADB).
Non-Profit
Association of Private Healthcare Institutions of Mongolia
Public-Private Partnership
Mongolian National Chamber of Commerce and Industry
Target Locations
Mongolia: Ulaanbaatar
Mongolia: Bayan-Ulgii
Mongolia: Govi-Altai
Mongolia: Uvs
References
- (1) WHO. (2022). Mongolia: crafting essential country-specific tools to tackle NCDs. [online] Available at: <https://www.who.int/news-room/feature-stories/detail/mongolia-essential-country-specific-tools-to-tackle-ncds#:~:text=Mongolia%20has%20one%20of%20the,cancer%20(24.6%25)%20in%202018.>[Accessed 16 October 2022].
- (2) Government of Mongolia. (2019). Mongolia Voluntary National Review Report 2019: Implementation of the Sustainable Development Goals. Ulaanbaatar"
- (3) WCRF International. (2022). Global cancer data by country | World Cancer Research Fund International. [online] Available at: <https://www.wcrf.org/cancer-trends/global-cancer-data-by-country/>[Accessed 16 October 2022].
- (4) Government of Mongolia, (2020). Vision 2050
- (5) United Nations Development Programme. (2020). Briefing note for countries on the 2020 Human Development Report, The Next Frontier: Human Development and Anthropocene.
- (6) National Committee on Gender Equality. (2019). Study on sexual and reproductive health rights of girls and women with disabilities.
- (7) Government of Mongolia. (2018). Three-Pillar Development Policy. "8) WHO. (2019). Mongolia: Progress towards Universal Health Coverage through strengthening primary health care. https://www.who.int/westernpacific/news-room/feature-stories/item/mongolia-progress-towards-universal-health-coverage-through-strengthening-primary-health-care."
- (9) United Nations & Asian Development Bank. (2018). UN-ADB Joint Mission Report: SDGs Mainstreaming, Acceleration and Policy Support.
- (10) Hawkins, L. (2021). "Digital tools and Mongolia's healthcare system."
- (11) Enkhmaa, D., Munkhuu, B., Baatar, T. et al. (2021). Overview of Telemedicine Services in Mongolia. Curr Pediatr Rep 9, 77–82. https://doi.org/10.1007/s40124-021-00245-w
- (12) Kemp, S. (2022) Digital 2022: Mongolia - DataReportal – Global Digital Insights. Available at: https://datareportal.com/reports/digital-2022-mongolia(Accessed: March 18, 2023).
- (13) "Digital Health - Mongolia | Statista Market Forecast". (2022), <https://www.statista.com/outlook/dmo/digital-health/mongolia>[accessed 16 October 2022].
- (14) Ariunsan, G. (2021) Education during the pandemic: Dimensions of the digital divide in Mongolia, Friedrich-Ebert-Stiftung in Asia. Available at: https://asia.fes.de/news/mongolia-digital-divide(Accessed: March 18, 2023).
- (15) National Statistics Office of Mongolia. Deaths by cause. https://1212.mn/tables.aspx?tbl_id=DT_NSO_2100_011V1&PH004_select_all=0&PH004SingleSelect=_0_1_2&Gender_select_all=0&GenderSingleSelect=_0_1&YearY_select_all=0&YearYSingleSelect=_2021&viewtype=table
- (16) Batbold O, Banzragch T, Davaajargal D, Pu C. (2022) Crowding-out effect of out-of-pocket health expenditures on consumption among households in Mongolia. Int J Health Policy Manag. 2022;11(9):18741882. doi:10.34172/ijhpm.2021.91
- (17) Jigjidsuren, A., Byambaa, T., Altangerel, E. et al. (2019). Free and universal access to primary healthcare in Mongolia: the service availability and readiness assessment. BMC Health Serv Res 19, 129. https://doi.org/10.1186/s12913-019-3932-5
- (18) Health Development Center (2022) Health Indicators. Available at: http://hdc.gov.mn/media/uploads/2022-05/ERUUL_MENDIIN_UZUULELT_2021.pdf.
- (19) National Statistics Office of Mongolia. (2022). Health Statistics - 2021. https://www2.1212.mn/BookLibraryDownload.ashx?url=Эрүүл_мэнд_-_2021.pdf&ln=Mn"
- (20) National Statistics Office of Mongolia. Maternal Mortality rate per 100,000 births.
- (21) World Health Organization. (2017) The prevention and control of noncommunicable diseases in Mongolia. https://apps.who.int/iris/bitstream/handle/10665/259627/WHO-NMH-NMA-17.55-eng.pdf" "22) National Statistics Office of Mongolia. Expense of Health Sector. https://1212.mn/tables.aspx?tbl_id=DT_NSO_2100_030V1&PH003_select_all=0&PH003SingleSelect=_1_3_4&YearY_select_all=0&YearYSingleSelect=_2021&viewtype=table"
- (23) Government of Mongolia. (2020). Five-year Development Guidelines To Develop. https://legalinfo.mn/mn/detail?lawId=15584
- (24) Government of Mongolia, (2015). Law on Value-Added Tax.
- (25) UNICEF Mongolia. Health - Challenges. Available at: https://www.unicef.org/mongolia/health(Accessed: March 18, 2023).