Merck Supports Healthcare Marketplace HD in Southeast Asia
The Growing Role of AI in Healthcare
Introduction
In recent times, major technology and pharmaceutical companies have aggressively adopted artificial intelligence (AI) to enhance healthcare services. For instance, AWS (Amazon Web Services) has partnered with General Catalyst to develop and implement AI tools specifically for healthcare. Similarly, GE Healthcare has collaborated with AWS to create generative AI solutions aimed at improving medical services.
HDmall: A Revolutionary Healthcare Marketplace
What is HDmall?
A new player in this space is HDmall, a healthcare startup based in Thailand. The company has developed a marketplace that aims to digitalize the fragmented medical industry in Southeast Asia. HDmall helps users locate healthcare services, such as hospitals and clinics. It also assists patients in finding specific surgeries and health check-ups, combines services to reduce costs, and offers installment payment plans for additional financial flexibility.
Recent Developments
Recently, HD has raised $7.8 million in equity funding, demonstrating strong interest from investors. This funding includes significant participation from Merck Sharp & Dohme (MSD), one of the leading global pharmaceutical companies, marking its first investment in a healthcare technology startup in the Asia Pacific region. Other investors included SBI Ven Capital, M Venture Partners, FEBE Venture, and Partech Partners. This latest funding round increases HD’s total funding to $18 million, following a previous round of $5.6 million.
According to Sheji Ho, co-founder and CEO of HD, MSD’s interest was largely due to HDmall’s success in distributing HPV vaccines online, which are administered at various partner hospitals and clinics. This partnership could potentially bolster vaccine distribution and healthcare accessibility across the region.
Marketplace Growth
HDmall’s marketplace hosts over 30,000 items from more than 2,500 healthcare providers, including hospitals and clinics, as well as collaborations with pharmaceutical companies. With around 400,000 paying customers in Thailand and Indonesia, the platform has generated an impressive $100 million in annual gross transaction volume. HDmall aims to expand its network to 5,000 healthcare providers and reach 600,000 patients by 2025.
Jib AI: AI-Powered Healthcare Assistance
Introduction to Jib AI
In early 2024, HD introduced an AI chatbot called Jib AI. This tool is designed to streamline initial healthcare inquiries and support for patients. Jib AI is trained on anonymized healthcare data, transaction records, and chat interactions, employing advanced language models for better engagement. The implementation of generative AI has led to about 60% of customer interactions being handled by AI agents, ensuring customers receive instant responses around the clock.
Benefits for Healthcare Professionals
Jib AI allows healthcare professionals, including nurses and doctors, to concentrate on providing high-quality patient care by managing initial triage and navigation tasks. Looking ahead, HD plans to expand Jib AI’s capabilities by incorporating features such as order and refund processing, assisted checkouts, appointment scheduling, tracking electronic health records, and retrieving medical information.
Future Plans and Expansion
Strategic Partnerships
HD is aiming to grow its network of external partners over the next two years. The focus will be on collaborating with various stakeholders, including insurance and pharmaceutical companies, as well as educational institutions and employers.
Sheji Ho points out that while companies in the U.S. have focused directly on business-to-business (B2B) models for care navigation, HD is adopting a unique business model labeled as ‘B2C2B.’ This strategy involves leveraging their success in business-to-consumer (B2C) markets to transition into B2B offerings, thereby enabling revenue generation from the start.
Healthcare Landscape in Southeast Asia
Challenges and Opportunities
The healthcare environment in Southeast Asia is markedly different from that in Western countries. Traditional healthcare systems often lack designated family doctors, which can complicate patients’ access to suitable healthcare. Many individuals often go directly to clinics and hospitals, making it significantly challenging to navigate the healthcare landscape.
Ho emphasizes that many telehealth services have been struggling to sustain the interest of both consumers and investors post-pandemic. Platforms like HDmall are filling the gap by providing transparency, ease of service comparison, and clear cost structures—an essential need in a region where individuals usually bear a larger portion of healthcare costs.
How HDmall Works
Consumer Focused Approach
Instead of simply listing individual general practitioners (GPs) or offering appointment schedules, HDmall functions more like the "Amazon of healthcare." The platform enables healthcare providers to market specific services such as health check-ups, cancer screenings, and various surgical procedures. This approach aligns with customers’ common practice of searching for specific medical services rather than searching for doctors.
Currently, HDmall operates in Thailand and Indonesia, with plans to extend into Vietnam and potentially Myanmar due to their comparable healthcare systems. The company aims to bridge the gap in private healthcare services in these regions and tap into the growing insurance market.
Conclusion
As users in Southeast Asia become increasingly familiar with technology to assist in healthcare decisions, platforms like HDmall stand poised to empower individuals in navigating their healthcare journeys. By combining the power of AI with a consumer-focused approach, HDmall is transforming healthcare access and making significant strides in an industry that desperately needs clarity and efficiency. The future looks promising as they continue their expansion and enhance their offerings through technology and strategic partnerships.
