Telemedicine and online prevention
Business Model Description
Allow medical consultation and telemedicine to underserved communities to receive remote medical services, sold to consumers through a dynamic, per-user model that allows not only for external consultation but first care Q&As with information available coordinated with Insurance Providers, Health providers, and MinSalud
Expected Impact
This initiative intends to provide medicine to underserved communities as a remote medical service to prevent treatable diseases.
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
Sector Classification
Health Care
Development need
Colombia is the 4th largest pharmaceutical market in Latin America (5)
1.28M employees in pharma and healthcare (5)
USD$ 14.3B in public healthcare expenditure (5)
Policy priority
The National Development Plan seeks to achieve the satisfaction of users with quality and opportunity of care, as well as to provide human talent and the health infrastructure of the different regions. Similarly, it seeks to directly face hypertension and the risk of cerebrovascular and heart diseases.
Gender inequalities and marginalization issues
Of the employed women in rural areas, 6.9% have no health affiliation
13% of indigenous populations that are not affiliated to the national health system, but also the remaining 87% who can improve the service they receive
Investment opportunities
M&A activity was quite vigorous in 2018 and 2019 and concentrated mainly in the medical cannabis manufacturing and private healthcare segments (5).
Key bottlenecks
> A significant driver for the development of healthcare sector is a rising demand for high-complexity medical services (5).
> Also, a key restraining factor for the subsector is the rising shortage of medical professionals stemming from poor working conditions and structural problems in the domestic educational system (5).
Health Care Providers
Development need
> Currently, out of 8,000 IPS, only 37 are accredited (6)
> 77,456 medical professionals in Colombia registered in the Special Registry of Health Services Providers (5)
> Even large and important cities have less than 9% of the national total number of Medical Professionals (5)
> With the pandemic, providers, have been forced to expand their virtual care network. However, many still experience problems and do not reach dispersed rural areas.
Policy priority
> Law 1955 of 2019 specifies that MinSalud must promote the management of the provision of health services, through advances and improvements in connectivity in remote areas of the country, in coordination with the guidelines of MinTIC (e.g. telehealth programs)(20).
Gender inequalities and marginalization issues
> 90% of indigenous territories are located in border departments, which will need benefit for a telemedicine appointment (10).
Investment opportunities
> In September 2019, Spanish diagnostic services provider Atrys Health acquired Colombian peer Teleradiologia de Colombia Diagnostico Digital Especializado, specialized in telemedicine, for an undisclosed amount (5).
Key bottlenecks
> Only 42.56% of households in Colombia have computers and/or tablets, reducing the population that can get internet access
> 23.8M people have no internet presenting significant asymmetries between urban and rural, where 45.7% in the head municipalities have connectivity vs. 6.2 % in scattered rural areas
Health Care Delivery
Pipeline Opportunity
Telemedicine and online prevention
Allow medical consultation and telemedicine to underserved communities to receive remote medical services, sold to consumers through a dynamic, per-user model that allows not only for external consultation but first care Q&As with information available coordinated with Insurance Providers, Health providers, and MinSalud
Business Case
Market Size and Environment
> USD 1 billion
> 25%
Approximately 23.6M general medicine services are offered in Colombia every year (16). Of these services, 12% could be easily diverted to telemedicine, which on averages saves USD$ 927/service to the health system (17), estimating a USD$ 2.6B market.
The global telehealth market size was valued at USD% 61.4B, projected to reach USD$ 559.52B by 2027, exhibiting a CAGR of 25.2% during this period (7).
Indicative Return
> 25%
20% - 25%
Organizations that implement and track ROI saw annual returns of 20% or more (18)
Cost-Benefit analysis of Telemedicine in Greek remote areas resulted in IRR between 21.5% to 140.5% (8)
French from Idinvest Partners sold TeleClinic, a telemedicine platform in Germany, to a Swiss pharmaceutical, generating a 40% IRR (9)
Investment Timeframe
Medium Term (5–10 years)
Based on the Colombian transaction of a company specialized in software solutions for custom telemedicine, the investment timeframe resulted in 6 years (37). The latter was complemented by investors interviewed, who proposed a range of 5 to 7 years for this type of investment.
Ticket Size
USD 500,000 - USD 1 million
Market Risks & Scale Obstacles
Capital - CapEx Intensive
Capital - Requires Subsidy
Impact Case
Sustainable Development Need
Only 80% of healthcare providers schedule a medical appointment in 5 days or less (1).
Healthcare in remote regions such as Guainía, Guaviare, Vaupés, and Vichada is limited because of understaffing, and thus they offer less than half of the required medical services (1).
The national health system has accumulated a debt that is between COP$ 9.6 trillion (~USD$ 2.7 trillion) and COP$ 16.2 trillion (~USD$ 4.6 trillion)(1).
Gender & Marginalisation
13% of indigenous populations that are not affiliated to the national health system, but also the remaining 87% who can improve the service they receive.
90% of indigenous territories are located in border departments that will benefit from a telemedicine appointment (10).
Of the employed women in rural areas, 6.9% have no health affiliation.
Expected Development Outcome
Provide critical preventive, primary, and secondary health care services to patients in parts of the country that are either remote and/or not covered by the public healthcare system, offering better access to more specialists regardless of location.
Remote analysis and monitoring services significantly reduce healthcare service costs, saving patients' money, doctors, and insurance companies. Telemedicine also reduces unnecessary non-urgent ER visits and eliminates transportation expenses for regular checkups.
Telemedicine can create efficiencies with staff, and therefore reduce costs while improving the quality of services. It reduces costs by lowering readmission rates as telemedicine leads to increased frequency of consultations with patients who have been discharged (11).
Gender & Marginalisation
Improve the health service that indigenous people receive and more timely service to the majority affiliated with the health system. Also, to include in the service 13% of these groups that do not have coverage.
Due to the remoteness and geographical difficulties, 90% of the population that is located in border territories could receive timely health care to improve diseases and mortality.
Rural women who are currently excluded from the health system could be reached, either because of their remoteness or the geographical difficulties of reaching them.
Primary SDGs addressed
3.8.1 Coverage of essential health services
3.4.1 Mortality rate attributed to cardiovascular disease, cancer, diabetes or chronic respiratory disease
3.c.1 Health worker density and distribution
From 59.1% to 100% of the population were covered by the social security system as of 2018 (26).
> Cardiovascular mortality rate: (2017) 83.7 out of 100,000 people between 30 and 70 years (26). > Cancer mortality rate: (2018) 60.3 out of 100,000 people between 30 and 70 years, showing an upward tendency since 2015 (26). > Diabetes mortality rate: (2018) from 9.4 to 28.5 people between 30 and 70 years depending on the department (26). > Respiratory diseases mortality rate: (2018) from 4.1 to 18.1 people between 30 and 70 years depending on the department (26).
> Bogota has a ratio of 3.7 doctors per 1,000 inhabitants in Bogotá. However, when looking at the rural area, this becomes 1 to 1,000 (36).
The national average of the population covered by the social security system is expected to reach 99% by 2030 (26).
> Cardiovascular mortality rate is expected to reach 75 out of 100,000 people between 30 and 70 years in 2030 (26). > Cancer mortality rate is expected to reach 55.2 out of 100,000 people between 30 and 70 years in 2030 (26). > Diabetes mortality rate is expected to reach 11.5 out of 100,000 people between 30 and 70 years by 2030 (26). > Respiratory disease mortality rate is expected to reach 8.1 out of 100,000 people between 30 and 70 years by 2030 (26).
> By 2022, a proportion of 1.7 doctors per 1,000 inhabitants is expected in rural areas, translating into an increase of 70% (36).
9.5.1 Research and development expenditure as a proportion of GDP
> Colombia, as of 2018, invested in I&D 0.24% of its GDP (26).
> As for 2030, Colombia expects to invest 0.84% (26).
Secondary SDGs addressed
Directly impacted stakeholders
People
Gender inequality and/or marginalization
Corporates
Public sector
Indirectly impacted stakeholders
Gender inequality and/or marginalization
Corporates
Outcome Risks
> The decrease in demand for other services such as transportation, local pharmacies, due to changes in the service.
> The face-to-face demand could be relegated to strictly serious things, increasing morality or illness indicators.
> Increase in energy consumption.
Impact Risks
Execution risk: >There is a lack of equipment, forms and means of communication, and technical platforms required to develop the infrastructure that guarantees connectivity for the implementation. > Training talent in health informatics and strengthening health personnel's capacities and competencies through virtual platforms is vital for the development of this initiative.
Stakeholder participation risk: > There may be patients who do not feel comfortable with the virtual modality, so there would be a lack of education on the functionalities that this modality can bring. > The Government, together with the National Development Plan, must fulfill its digital transformation initiative. > Enough service providers are needed to meet the demand that is needed in all regions.
Drop off risk: > That the conditions provided by this initiative do not satisfy the medical providers' expectations or conditions, who could leave the service.
External risk: > In many remote rural locations, robust and reliable internet connectivity is not available, making implementation still problematic. > Colombian health system should include this service within what is covered by the subsidized regimen.
Unexpected impact risk: > Weather conditions that hinder infrastructure or internet transmission. For example, strong winds or other natural disasters that damage the connection.
Gender inequality and/or marginalization risk: > Distant or remote communities may have difficulty accessing good connectivity and the necessary tools to make telemedicine appointments.
Impact Classification
What
Positive and important outcome due to improved health coverage.
Who
Underserved stakeholders living in remote areas with little or no access to health services.
Risk
Underserved stakeholders living in remote areas with little or no access to health services.
Impact Thesis
This initiative intends to provide medicine to underserved communities as a remote medical service to prevent treatable diseases.
Enabling Environment
Policy Environment
(National Development Plan): Improve population's health, guaranteeing high-quality standards and user satisfaction by supporting the implementation of telehealth projects aimed at remote populations and comprehensive treatment healthcare models (19).
(Ten-year Public Health Plan 2012-2021): Seeks to achieve zero tolerance for preventable morbidity, mortality, and disability. The latter refers to health services and the technology necessary for the damage to be preventable (33).
(National Rural Health Plan): Aims to close the gaps in health services between urban and rural areas with a gender focus, prioritization of childhood and old age, social inclusion with people with disabilities, and ethnic focus, among others (34).
Financial Environment
Financial incentives: Colciencias launches multiple calls to finance innovation projects to strengthen the health sector through the generation, adaptation, and use of new technologies (23). Funds such as Ewa Capital have invested in remote platforms for health services such as 1DOC3 (4).
Fiscal incentives: Article 9 of Law 100 of 1993 establishes that the resources of social security institutions in health may not be allocated or used for purposes other than it. The resources of the social security system in health are parafiscal income because they are contributions that have a specific sector of the population as a taxpayer and are destined for their benefit.
Regulatory Environment
(Law 1955 of 2019): MinSalud must promote the management of the provision of health services, through advances and improvements in connectivity in remote areas of the country, in coordination with the guidelines of MinTIC (e.g., telehealth programs)(20)
(Law 1419 of 2010): aims to develop Telehealth in Colombia, in support of the General Social Security System, under the principles of efficiency, universality, solidarity, integrity, and quality (21).
(Decree 1848 of 2017): establishes a unique qualification system for indigenous EPS, which includes the set of requirements and procedures that determine the administrative, scientific, technical, cultural, and financial conditions, to guarantee access to health services with a differential approach to their affiliates, attending to the socio-cultural and geographical particularities of indigenous peoples.
Marketplace Participants
Private Sector
Teletropic is a web-access platform that provides telemedicine services. It is a start-up that won the Emprende con Datos competition, a project led by MinTic and RutaN (22). Health-tech funding and start-ups have skyrocketed in LatAm: between 2014 and 2019, the number of health start-ups jumped from 160 to 389 in the region (24). Bive.co is a low-cost annual membership that allows families to access particular health services efficiently (25).
Government
MinSalud published the guidelines for implementing telehealth activities, including care in the modality of telemedicine and tele-orientation in the context of COVID-19 for Health Service Providers.
Multilaterals
UNICEF has adapted and expanded its digital platforms for communication, monitoring, and remote programming. These platforms include virtual learning courses, educational sessions on radio and television, telemedicine services, among others (12).
Target Locations
References
- (1) DNP (2017) – Plan Nacional de Desarrollo (2018 – 2022)
- (2) CONPES 3918. 2018. Estrategia para la Implementación de los Objetivos de Desarrollo Sostenible en Colombia. Accessed May 22nd 2020
- (3) Minsalud (2019) – Cifras de aseguramiento en Salud. Accessed May 30th 2020
- (4) Ewa|Portfolio companies: http://ewa.capital/portfolio/.Accessed February 8th.
- (5) EMIS (2020) Colombia Pharma & Healthcare sector 2020/2021
- (6) MinSalud (2016) Mention of excellence by 37 IPS
- (7) Fortune Business Insights (2019) Telehealth Market Size, Share & Covid-19 Impact Analysis
- (8) PubMed.gov (2017) Cost-Benefit Analysis of Telemedicine Systems/Units in Greek Remote Areas
- (9) Private Equity News (2020) Idinvest sells German telemedicine start-up delivering 40% IRR
- (10) MinSalud (2016) Health Profile of Indigenous People and inequality measurement
- (11) Global Data System (n.d) 3 Ways Telemedicine Makes Healthcare More Effective and Efficient
- (12) UNICEF (2020) Update on UNICEF humanitarian action: the 2019 coronavirus disease pandemic
- (16) Acemi (2013) – Cifras e indicadores sistema de salud. Accessed June 29th 2020
- (17) Robeznieks (2019) - How telemedicine helped this health system’s patients avoid the ED. Accessed June 29th 2020
- (18) Teladoc (2019 – Telehealth impressive ROI. Accessed June 20th 2020
- (19) DNP (2017) – Plan Nacional de Desarrollo (2018 – 2022)
- (20) Velásquez (2019) – Parámetros para la Telemedicina en Colombia. Accessed June 23rd 2020
- (21) Ley 1419. 2010. Accessed June 21st 2020
- (22) Gobierno Digital (2019) - Teletropic, plataforma de acceso web para prestar servicios de telemedicina tropical. Accessed June 22nd 2020
- (23) Colciencias (2014) - Convocatoria para el fortalecimiento de los nodos de innovación en TIC. Accessed June 15th 2020
- (24) Cision (2019) - Telemedicine Adoption Grows Strongly in Latin America. Accessed June 10th 2020
- (25) Bive.co. Accesed June 2020.
- (26) National Planning Department (2019) - 2030 Agenda in Colombia
- (27) National Quality of Life Survey - Amazon (2019) DANE
- (28) National Quality of Life Survey - Caribbean (2019) DANE
- (29) National Quality of Life Survey - Pacific (2019) DANE
- (30) Department Development Plan - Amazonas (2019) Gobernacion del Amazonas
- (31) National Quality of Life Survey - National (2019) DANE
- (32) MinSalud (2017) Decree 1848 of 2017
- (33) MinSalud (2012) Ten-year Public Health Plan 2012-2021
- (34) ConsultorSalud (2020) National Rural Health Plan
- (35) Opinion y Salud (2019) Law 1943, Financing Law
- (36) DNP (n.d) Health for Everyone: National Development Plan
- (37) IADB (2016) Impact of Early Stage Equity Funds in Latin America