South Asia Journal: Eldercare- Any Innovation there?

India is witnessing an increase in its elderly population, projected to rise from 149 million in 2022 to 347 million by 2050 (Ref: themint), constituting 20.08% of our population.

However, our eldercare systems are largely fragmented, relying heavily on the informal sector to navigate the complexities of home care or hospice care solutions. While several players have emerged to address this gap by providing training and placement services for home care professionals, attrition rates remain high due to the allure of working in hospitals or nursing homes. The stability of the training ecosystem hinges on the current system they’ve established.

The eldercare segment demands more than medicine, patient care or logistical support. It necessitates trained professionals capable of handling extreme situations and addressing the loneliness often experienced by the elderly. The true impact lies in the humane element of care. Investors, particularly in the VC realm, have hesitated due to concerns over profitability and scalability. Additionally, competing with the informal sector poses a significant challenge.

While PE investments have been directed towards retirement communities, these options remain financially feasible for only a segment of the population. What about those who wish to age in their familiar environments/ communities? Addressing this demography requires innovative solutions that balance financial sustainability with compassionate care.

That leads to my question- What types of innovations hold the potential to address the needs of eldercare in emerging India?

During a visit to Mexico few years back, I had the opportunity to meet with one of our portfolio companies, Instituto Salus. They introduced me to their innovative in-centre model, similar to children’s day care, but tailored for the elderly. This solution allows working professionals to drop off their parents at these centres, where food, activities, engagement, and regular check-ups are all included in the care package. Remarkably, elderly individuals, including those with dementia, have shown significant improvements after regularly attending these centres. The centres are bustling with energy, as for some seniors, they are looking forward to meeting their friends , engage in conversations, and even sharing recipes with the help of centre nurses and facilitators. The inhouse Doctors, regularly check for symptoms, preventive health-check up and care.

The convenience of being able to pick up your parents after work and engage with them, much like how one interacts with their children about their day, is a unique aspect of this model. Now the question arises: Is this model feasible in Indian society, where cost-benefit analysis often prevails the need? While it may challenge traditional notions, this model effectively alleviates the anxieties of working professionals who wish to care for their parents in a more structured and effective manner.

In many urban areas, elderly individuals grappling with loneliness often encounter medical challenges. Some may choose not to seek care, while others may be hesitant to burden their adult children. The solution lies in the growth of the Indian economy and the evolution of our cities. With more Indians either returning or choosing to stay in India to pursue own venture and remain close to family, there’s a palpable sense of opportunity in the air. Innovation is the catalyst for addressing these pressing needs. It would be interesting to see new models in this segment, a healthcare systems — especially insurance stepping up to cater to such models.