Spend-IT: Max Healthcare invests in RPA, cyber security to boost patient care

Max Healthcare Institute Limited, a private hospital chain, has steadily increased its technology expenditures over the years. 

 According to an analysis by TechCircle, the company's investment in technology rose by over one-fourth in fiscal years 2023 and 2024, with a focus on digital growth to boost patient care and operational enhancements. The Delhi-based organisation however saw a 14% decrease in FY21, likely as a cost-cutting measure in response to the pandemic. Revenue growth reached a peak of 57% in FY22, accompanied by a one-fourth increase in technology spending. In FY24, revenue growth slowed to 18%, while technology expenditures rose by approximately one-third.

Despite these increases, the proportion of technology spending relative to revenue has consistently remained below 1% during this period, the analysis showed.

With a network comprising 19 hospitals and a workforce exceeding 5,000 doctors, Max Healthcare provides a wide array of high-quality medical services. The organisation aims to improve accuracy and efficiency in tax compliance by incorporating digital solutions into its tax strategy, utilising automation tools for streamlined reporting and timely submissions.

To enhance patient care and operational efficiency, Max Healthcare has also invested in robotic process automation (RPA), targeting areas such as user onboarding, invoice processing, and pharmacy order management. Over the past year, the hospital has implemented surgical robotic systems to expedite recovery and reduce infection risks.

Additionally, the introduction of Generative AI in Radiology and Clinical services, along with a heightened emphasis on AI, machine learning, automation, and data analytics, is currently in progress. Presently, more than 20 RPA bots are in operation to automate repetitive tasks, thereby improving efficiency, accuracy, and productivity.

To further enhance the employee experience, Max Healthcare has launched a comprehensive human resource (HR) platform, ONExp, which consolidates core HR processes and offers a single access point for managing HR functions, thereby improving efficiency and data accuracy.

The creation of in-house Customer Relationship Management (CRM) and Enterprise Resource Planning (ERP) systems have further reduced dependence on external agencies, while an automated logistics management system has helped them lower transportation expenses.

Max Healthcare has established comprehensive cybersecurity measures through a detailed framework that includes policies, training, audits, and incident response strategies. The implementation of stringent access controls, ongoing training for the cybersecurity team, and regular audits are essential for identifying and addressing vulnerabilities.

The hospital also organises frequent employee awareness initiatives and employs advanced security protocols. Additionally, it utilises WhatsApp for patient communication, thereby improving accessibility and engagement.

In September 2024, the hospital chain acquired a 64% stake in Jaypee Healthcare for ₹1,660 crore. Jaypee Healthcare, a subsidiary of the financially troubled Jaypee Infratech, is currently undergoing corporate insolvency proceedings. This acquisition, valued at ₹398 crore, allows Max Healthcare to bolster its position within the healthcare sector.