As the healthcare industry increasingly embraces digital innovations, a notable trend has emerged: the integration of artificial intelligence (AI) into healthcare systems. This transformation is being spearheaded by a combination of Big Tech partnerships and innovative startups that are rethinking how healthcare is delivered and accessed in emerging markets. In particular, Southeast Asia represents a fertile ground for such initiatives, driven by the need for efficiency and transparency in an often fragmented healthcare landscape.
Recent collaborations between major tech firms and healthcare organizations underscore a growing recognition of AI’s potential. Companies like Amazon Web Services (AWS) are teaming up with traditional healthcare entities to create lasting changes in how care is administered. For example, a partnership between AWS and General Catalyst is aimed at accelerating the development of healthcare AI applications. Similarly, GE Healthcare’s collaboration with AWS seeks to harness generative AI technology for medical purposes, with aspirations set for deployment in 2024.
Amid these developments, smaller startups are making significant strides. One such company is HD, a Thailand-based healthtech startup that has created a digital marketplace, HDmall, aimed at streamlining access to healthcare services across Southeast Asia. By enabling users to find healthcare providers, schedule appointments, and access a range of medical procedures, HDmall addresses some of the region’s most pressing healthcare challenges.
The healthcare marketplace established by HD is particularly noteworthy. Featuring over 30,000 stock-keeping units (SKUs) from more than 2,500 providers, HDmall caters to an extensive user base, amounting to an annual gross transaction volume of $100 million. With support from investors—including a $7.8 million investment from Merck Sharp & Dohme (MSD)—the startup has garnered attention for its innovative approach to healthcare delivery.
Co-founder and CEO Sheji Ho articulated the significance of this funding and partnership. Interestingly, MSD’s interest in HD stems from the startup’s success in selling HPV vaccines online through various hospitals and clinics. This indicates a mutual benefit, wherein MSD can leverage HD’s existing infrastructure to promote vaccination efforts, thus enhancing public health outcomes.
In total, HD has secured approximately $18 million in funding since its inception, including a recent $5.6 million round. The company’s plans for 2024 include the introduction of Jib AI, a chatbot designed to assist users in navigating healthcare options. This AI-driven model enables HD to automate up to 60% of customer interactions, reflecting an innovative approach to enhance user experience.
The reliance on AI innovations like Jib AI not only streamlines operations but also allows healthcare professionals more time to focus on patient care. By managing initial inquiries and guiding users through services, AI can reduce the burdens on medical staff, leading to improved patient outcomes. Over the next year, HD evaluates the prospect of incorporating features such as order processing, scheduling, and medical information retrieval into Jib AI, which would significantly amplify the assistant’s capabilities.
The company’s blend of business models resonates well in Southeast Asia, where healthcare behaviors often differ from those in Western countries. Instead of a traditional family doctor system, many patients directly seek hospital care, making a digital marketplace particularly advantageous for facilitating service access and navigation.
Ho’s vision for HD also recognizes that many healthcare startups in Southeast Asia have overly relied on telehealth solutions. In the wake of post-pandemic realities, this model has lost appeal among consumers and investors alike. By strategically positioning itself between direct consumer services and business-to-business healthcare solutions, HD aims to cater to the unique dynamics of its target markets.
As the startup looks to expand its services into Vietnam and potentially Myanmar, it recognizes the similarities in healthcare systems across these markets. The high proportion of out-of-pocket expenses in healthcare, coupled with a lapse in comprehensive private insurance coverage, further emphasizes the demand for platforms that offer greater transparency and cost-efficiency.
Another pivotal element of HD’s strategy is the focus on empowering individuals in their healthcare decisions. The growing tendency of consumers to utilize online platforms for healthcare information searches aligns perfectly with HD’s offerings. By catering to this trend, HDnot only facilitates user autonomy but also builds trust and engagement with its customer base.
The convergence of AI technology and healthcare is shaping a new paradigm for service delivery in Southeast Asia. Startups like HD are at the forefront of this evolution, illustrating the transformative impact of digital solutions in improving access, affordability, and user experience in healthcare. As they continue to innovate and adapt, the future landscape of healthcare in the region stands to benefit significantly, ultimately enhancing the well-being of millions.