Problems in India's Diagnostics Sector
The diagnostics sector is rapidly growing with 300,000 labs, but remains under-regulated and fragmented.
Diagnostics make up 9% of India’s healthcare industry, valued at ₹860 billion in 2024, projected to grow to ₹1,275 billion by 2028.
The sector faces uneven standards and many small, unaccredited labs.
Regulatory Challenges
The Clinical Establishments Act, 2010 aims to regulate diagnostic centers but is only adopted by 12 states with poor enforcement.
States like Karnataka and Tamil Nadu have weak regulation, resulting in labs run by unqualified individuals and unqualified staff performing tests.
Issues like "ghost pathologists" and untrained personnel undermine the reliability of lab results.
Shortage of Trained Staff and Urban-Rural Divide
There is a shortage of trained doctors, technicians, and pathologists, leading to poor-quality lab reports.
Rural areas face severe gaps, with only 24% of diagnostic revenue coming from these regions, even though 70% of the population resides there.
Government labs suffer from staff shortages and outdated facilities, pushing patients toward the private sector.
Pricing and Sector Issues
Pricing remains a significant concern in private diagnostics, although some government initiatives, like Telangana's T-Diagnostics, help reduce costs.
Small labs face difficulties with regulatory requirements for space and staff qualifications in states like Kerala and Tamil Nadu.
There is a push for stricter regulations, including licensing, accreditation, and mandatory quality checks across the country.
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