Dr. Azad Moopen, Founder and Chairman of Aster DM Healthcare, has been a vocal advocate for digital transformation and innovative financing models in healthcare. His insights, shared in an exclusive conversation with ETHealthworld, offer a roadmap for how the sector can evolve to meet the challenges of accessibility and equity, especially in a country as diverse and populous as India.
Aster DM Healthcare’s journey from a single clinic in Dubai to a global healthcare powerhouse is a testament to the power of vision and strategic planning. Dr. Moopen highlights that the company’s expansion into India in 2001 was a pivotal moment, bringing with it unique challenges and opportunities. “Entering India in 2001 was a defining moment, bringing unique challenges like regulatory complexities and price sensitivity, but also immense growth potential,” he notes. The company’s asset-light Operations and Maintenance (O&M) model has been instrumental in efficiently expanding into tier 2 and tier 3 cities, where the need for quality healthcare is often most acute.
The O&M model, which involves managing and operating healthcare facilities without owning the assets, has become a preferred strategy for hospital expansion in India. This approach not only reduces upfront capital expenditure but also accelerates revenue generation. Dr. Moopen explains, “Brownfield acquisitions reduce upfront capital expenditure by 35-40 per cent and enable faster revenue generation, as seen in the ₹250 crore investment to expand Aster CMI Hospital, Bengaluru, from 500 to 850 beds.” This strategy has driven a 35% compound annual growth rate (CAGR) in India’s EBITDA over five years, demonstrating the model’s effectiveness in optimizing costs and enhancing operational efficiency.
Aster DM Healthcare’s recent merger with Quality Care India, backed by Blackstone, has positioned the company among India’s top three hospital networks. This strategic move, along with the separation of GCC and India businesses, has unlocked regional value and driven innovation. Dr. Moopen emphasizes the importance of leveraging technology for inclusive medical services, stating, “Technology is key to bridging gaps, with telemedicine set to grow at 20.7 per cent CAGR, reaching $15.1 billion by 2030.” Aster’s digital health arm is expanding tele-ICU, teleradiology, AI-driven diagnostics, IoT monitoring, and EMR platforms to enhance accessibility, affordability, and quality care nationwide.
The company’s approach to expanding virtual care in North India is particularly noteworthy. Dr. Moopen highlights the rapid evolution of India’s digital healthcare landscape, driven by smartphone penetration, the Ayushman Bharat Digital Mission (ABDM), and telemedicine regulations. “Telemedicine cuts costs by 30 per cent, reduces readmissions by 40 per cent, and lowers consultation fees by 50 per cent,” he notes. Aster’s telecommand centre in Bengaluru is enhancing remote care across India, improving access in underserved areas.
However, the journey towards a more equitable healthcare system is not without its challenges. Dr. Moopen acknowledges the perception that private healthcare can be exploitative and lacks regulation. He advocates for mandatory accreditation for hospitals and medical professionals, drawing on global models to improve healthcare quality standards. “Mandatory accreditation is a game-changer for healthcare quality, ensuring standardized protocols, patient safety, and accountability,” he states.
Dr. Moopen also addresses the reluctance of private hospitals to join the Pradhan Mantri Jan Arogya Yojana (PMJAY), a transformative initiative aimed at expanding healthcare access for underserved populations. He supports the scheme’s long-term success through collaboration and technology, suggesting that innovative financing models and a collaborative framework could boost private sector participation. “We support PMJAY’s long-term success through collaboration and technology. Our telehealth platform can extend specialist consultations to remote areas, reducing travel and hospitalization costs,” he explains.
As the construction industry increasingly intersects with healthcare, particularly in the development of smart hospitals and healthcare infrastructure, Dr. Moopen’s insights offer valuable lessons. The focus on digital transformation, innovative financing models, and the integration of technology into healthcare delivery can serve as a blueprint for the construction sector. By embracing these principles, the construction industry can contribute to the development of sustainable, accessible, and technologically advanced healthcare facilities that meet the evolving needs of a growing population.
