Dermatology emerges as a strong revenue and growth driver for hospitals and specialty clinics

Dermatology in India has evolved well beyond the treatment of basic skin infections and allergies, emerging as a significant contributor to hospital and specialty clinic revenues. In this interview, Dr Aparna Santhanam, Dermatologist and Head Medical Operations, Kaya, speaks to Kalyani Sharma about the expanding scope of medical and procedural dermatology and growing demand from tier 2 and tier 3 markets

How is the dermatology segment evolving as a revenue and growth driver for hospitals and specialty clinics, particularly with the rising demand for advanced medical and procedural dermatology services?

Dermatology in India now treats conditions which extend past skin infections and allergies. The market segment now generates substantial revenue for hospitals together with specialty clinics. People now seek more acne treatment and hair loss solutions and pigmentation fixes and cosmetic procedures because they have become more aware of their skin and hair appearance through social media and their changing way of life. Patients from tier 2 and tier 3 towns show readiness to spend their own money for achieving noticeable medical outcomes. Medical dermatology continues to expand because patients with chronic skin conditions including psoriasis and eczema and vitiligo require ongoing medical care. The outpatient nature of dermatology care makes it suitable for hospitals because this specialty does not need extensive bed capacity. Medical and aesthetic services operated together in hospitals to generate continuous revenue streams which supported their financial growth and stability of their operations.

What role are technologies such as AI-enabled imaging, dermatoscopy, and digital pathology playing in improving diagnostic accuracy and operational efficiency in dermatology practices?

The Indian dermatology field receives better care through the progressive development of technological solutions. Doctors use dermatoscopes as tools to study skin lesions better which results in accurate diagnoses through non-invasive procedures. AI-based skin imaging technology operates in both large hospitals and startup clinics to help doctors identify skin problems at an early stage while enabling virtual patient care but it needs further development. Digital pathology enables experts based in major cities to examine biopsy samples which benefits rural areas with limited medical resources. The Covid-19 pandemic made tele-dermatology more accepted because it enabled patients to access specialist consultations through remote consultations. Basic digital systems have started to enhance operational efficiency through their ability to decrease the number of patient visits while simultaneously improving treatment and diagnosis accuracy.

From a hospital management perspective, what are the key challenges in scaling dermatology services across tier 2 and tier 3 markets while maintaining clinical quality and standardisation of care?

Ans: The process of expanding dermatology care throughout smaller Indian communities proves to be extremely challenging. The main obstacle stems from insufficient numbers of trained dermatologists because these specialists choose to practice in urban metropolitan areas. The implementation of advanced equipment which includes lasers and energy-based devices requires significant financial investment and demands personnel who possess specialised training. The public remains unaware about the condition because patients tend to postpone their medical care while they search for affordable and fast treatment options. The hospital management needs to exercise complete control for implementing standardised protocols and hygiene practices and pricing systems. Staff training and retention are ongoing issues. The availability of connectivity and data systems remains limited in particular regions. Hospitals require established clinical guidelines together with scheduled training sessions, senior doctor tele-support, and funding growth that matches their local patient needs to solve this problem.

How are partnerships with pharma, medical device companies, and diagnostics players shaping innovation and service delivery in dermatology, especially in areas like biologics, injectables, and energy-based devices?

The development of dermatology services in India depends heavily on the establishment of partnerships. Pharmaceutical businesses provide support for biologic treatments of psoriasis and other chronic skin diseases through educational programmes for doctors and patient assistance initiatives. The partnerships enable hospitals and clinics to deliver contemporary medical care while sharing the expenses with their partners. The vendors provide maintenance services together with upgrade support and marketing assistance to their customers. The partnerships between these organisations exist more strongly in metropolitan areas but they now reach out to establish presence in smaller urban centers. The adoption of international standards by Indian dermatology clinics becomes possible through their partnerships which operate at speeds that match their specific market requirements.

With increasing regulatory scrutiny and the need for evidence-based outcomes, how are dermatology practices measuring clinical effectiveness, patient outcomes, and return on investment for new therapies and technologies?

The practice of dermatology in India now emphasises both treatment outcome assessment and delivery of high-quality medical services. Doctors monitor clinical improvement by assessing symptom reduction and disease severity ratings and performing before-and-after photographic evaluations. The practice measures its success through three essential performance metrics which include patient satisfaction, the number of patients who return for follow-up care and the amount of new patient referrals. Hospitals track three main elements which include procedure numbers, safety results, and patient recovery duration for their new technology implementations of lasers and injectables. The evaluation of return on investment depends on three performance indicators which include equipment operational rates, treatment adoption rates, and decreased complication rates. The growing regulatory oversight requires clinics to adopt evidence-based practices for their operations.

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