Risks in Telemidicine Industry

Practo

By Kunal Jha and Paraduman Mahajan, PGDRM Batch July’20-21

Introduction

• Practo is a Indian tele-medicine company founded in 2008  by Shashank ND and Abhinav Lal.​
• Earlier in 2009 Practo was focused on Practo Ray software services in which doctors can view digital health records, print e-prescriptions, schedule appointments, generate e-bills and review patients etc.​
•  In the year 2013, the company’s founders launched Practo’s website i.e., Practo.com as a doctor discovery platform to facilitate customers to approach the right doctors instantly through the online medium.​
• By 2014 more than 10 million e-records of patients were created, which was increasing at a double rate . More than 1,00,000 doctors were listed on Practo.com​
• By 2015 Practo received Series B funding from Matrix Partners and Sequoia Capital.​

Business Model

Source: Studiousguy.com

Source: Studiousguy.com

Strategic Risks​

• Reduction in business share due to competition, healthcare reforms​
• Geographical Risks​
• Inefficient Doctor Engagement Strategy​
• Merger and acquisition 

Operational Risks​

• System failure​
• Reputation loss​
• Delay in delivery may lead to customer loss.​
• Usually customers have trust factor towards the local pharmacies. ​
• Delivery of Expired Medicine.​
• Incorrect Diagnosis /Prescription​

Cyber Risks

• E-Transaction ​
• Loss of sensitive personal data or information (SPDI)​
• Safety of data​

Compliance Risks

• Health Insurance Portability and Accountability Act (HIPPA)​
• Digital information security in healthcare act (DISHA) ​
• Health Information Technology for Economic clinical act (HITECH)​

   (Government may come up with stringent regulations on this type of telehealth Since they play on a minute margins, it can threat their existence)​

Financial Risks

• Huge Amount of Investment For Expansion​
• Pricing strategy of competitors​
• Professional liability coverage​

Fraud Indicators

• Fake Call Frauds​
• Insurance Coverage promise​
• Suspicious Charges​

Key Companies in the Telemedicine Industry

References

• https://www.protiviti.com/US-en/insights/top-risks-2019-healthcare
• ​​https://forum.ashrm.org/2018/08/21/ashrm-whitepaper-telemedicine-risk-management-considerations/
• http://www.rmmagazine.com/2016/08/01/the-benefits-and-risks-of-telemedicine/​
• https://www.wftv.com/news/consumer/clark-howard/3-warning-signs/DSLPPJUO76RLMLAGBDCPI2PDRA/​
• https://craft.co/practo-technologies-pvt/competitors​​https://studiousguy.com/business-model-of-practo/​
• https://www.owler.com/company/practo#fundinghistory​​​​​

Disclaimer

This report has been produced by students of Global Risk Management Institute for their own research, classroom discussions and general information purposes only. While care has been taken in gathering the data and preparing the report, the student’s or GRMI does not make any representations or warranties as to its accuracy or completeness and expressly excludes to the maximum extent permitted by law all those that might otherwise be implied. References to the information collected have been given where necessary.

GRMI or it’s students accepts no responsibility or liability for any loss or damage of any nature occasioned to any person as a result of acting or refraining from acting as a result of, or in reliance on, any statement, fact, figure or expression of opinion or belief contained in this report. This report does not constitute advice of any kind.

Get the full research study here: Risks in Telemedicine(Practo) by Kunal Jha and Pradhuman mahajan

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