Description
Problem Definition
The health insurance claim process is notoriously slow in India – each discharge takes upwards of 6 hours, and average payment TAT from insurers is over 45 days across the country. Add to this the lack of clear tracking of receivables, insurance management is a hassle for most hospitals, and a significant strain on the working capital cycles. Conversely, Insurers constantly struggle with accuracy of information and documentation provided by hospitals and reconciliation of payables with hospitals.
Solution
Healspan has built a claim filing and tracking platform that enables hospitals to file, manage and track their health insurance claims much better with an aggregator portal that can take health insurance claims for over 30 insurers and TPAs and a simplified workflow for claim filing using OCR, smart document generation and guidance on document /data requirements. Their future pipeline currently under development also includes financial products that reduce the overall payment realisation time (for insurance) from ~45 days to 1 day.
Market Opportunity
Healspan estimates the health insurance gross transaction volume to be currently ~INR 73,000 crores, estimated to grow to ~INR 205,000 crores by 2028. Healspan is estimated to have a Total Addressable Market of INR 10,000 Cr by 2028.
Following are a few highlights of Healspan:
- 50+ client hospitals, including Apollo, Kauvery, Be Well hospital chains
- Partnership with 30+ insurers and TPAs
- Company’s revenues have commenced : Monthly revenue as of February 2024: INR 8.3 Lakhs
About the Founders
- Sabarinath U – Product , Strategy , and Support functions – XLRI Jamshedpur – Ex Hero, Whirlpool and Myntra
- Abhishek Sinha – Sales & Operations – 8+ years of experience in insurance, TPA and project management
- Vinayaka Naik – Head of Engineering – 12 years of experience as a principal architect across companies like Flipkart, HPE and Yubi with Cross-stack SaaS expertise
Customer Feedback
Lead Angels Fintech also conducted a customer feedback call with one of Healspan’s oldest clients, Avis Hospitals, who has been their client since December of 2022.
Highlights of the Customer Feedback call were as follows:
- Since using Healspan, they have had 100% claim settlement rate, they still have open claim cases since 2020 but after Healspan, the settlement rate is at 100%
- Query rates have gone down significantly due to the document generation ease and capacity
- The team is doing a good job at client servicing with regular jam sessions to resolve queries if any
Details of the Investment Round
They are raising INR 4 Cr at a pre-money valuation floor INR 16 Cr and valuation cap of INR 24 Cr with a discount of 20% to the valuation found at the next round of funding.
The investment in Healspan is open through our SEBI-registered AIF Category 1 VCF Angel Fund, Lead Angels Fund. In case commitments exceed the allocated amount, allotment will be on a “First Come, First Serve” basis.
