Digitising healthcare: Next big investment frontier for EA investors

East Africa's health sector is on the brink of a digital revolution as the demand for accessible and affordable healthcare continues to rise. In a recent interview with Dr. Kanyenje Gakombe, Chairman of the Kenya Healthcare Federation, key trends and opportunities in healthcare financing in the region were discussed. One of the crucial trends shaping the industry is digitalization, with the recent enactment of a law to support digital health and the establishment of a digital health authority. The aim is to integrate all aspects of the healthcare sector through technology, creating a seamless system that prioritizes access, affordability, and quality of care. Healthcare financing and the journey towards universal health coverage are also driving the need for increased digitalization. Processing a vast number of claims efficiently and collecting payments cost-effectively are essential components of achieving universal coverage. The ecosystem approach is another emerging trend in East Africa's healthcare landscape. Moving away from isolated healthcare facilities, this approach emphasizes connectivity between facilities, patients, payers, financial service providers, and suppliers. This interconnected system ensures accurate information flow, data integrity, and addresses the issue of information asymmetry that has plagued the industry. Quality of care is also in focus with the impending enactment of a quality of health act in Kenya, shifting the focus from infrastructure metrics to ensuring minimum standards of healthcare are met. Improved access through non-traditional channels such as point-of-care testing, telemedicine, and remote monitoring is expanding healthcare reach and convenience for patients. The integration of digital hospitals is set to revolutionize the cost of healthcare and enhance universal access. Dr. Gakombe highlights the importance of studying the evolution of fintech and applying similar principles to healthcare. By leveraging technology, healthcare costs can be reduced significantly, not just in terms of medical care but also in logistics expenses for patients. For instance, the implementation of telemedicine in Muranga County has already shown promising results, allowing patients to receive care without the need for extensive travel, saving both time and money. The digitalization of healthcare also offers a solution to mitigate the scarcity of specialized healthcare professionals in the region. With only 50 nephrologists serving 50 million people in Kenya, digitization allows for better collaboration and resource-sharing among healthcare providers, ultimately leading to increased productivity and efficiency in delivering care.