Addressing Healthcare Access and Costs in Africa

For a continent characterized by significant disparities, innovation aimed at improving healthcare access and lowering delivery costs has been limited. Despite consistent investment in conventional care approaches, evidence of their inefficiency and rising expenses continues to mount. The recent pandemic further highlighted these issues, revealing vulnerabilities within the continent’s healthcare infrastructure.

Quro Medical: A New Approach to African Healthcare

Health tech company Quro Medical is pioneering alternative healthcare models, beginning in its native South Africa. Emerging from a period of development, the company has announced the completion of a $1.1 million funding round, providing services focused on managing patients’ illnesses within the comfort of their own homes.

This funding round was spearheaded by Enza Capital, a Kenya-based investment firm, and Mohau Equity Partners, a South African venture capital company.

The Founding of Quro Medical

Quro Medical was established in 2018 by Dr. Vuyane Mhlomi, Zikho Pali, and Rob Cornish. CEO Mhlomi’s understanding of the urgent need for healthcare innovation in South Africa stemmed from personal experiences both before and during his medical training.

Hospitals across Africa frequently face overwhelming patient volumes, creating strain on available bed capacity. This situation also impedes optimal patient care and recovery. Growing up in Cape Town, Mhlomi witnessed these challenges firsthand, as his parents dealt with chronic health conditions requiring lengthy waits in clinics and hospitals.

Further studies in medicine at the University of Oxford provided Mhlomi with new perspectives. Upon returning to South Africa, he recognized the need to address the problems he had previously encountered, leading to the creation of Quro Medical.

The Core Beliefs Driving Quro Medical

“We were united by a shared conviction that the private healthcare sector possesses the capacity, and indeed the responsibility, to alleviate the burden on healthcare provision within this country and across the continent,” Mhlomi explained to TechCrunch. “The increasing costs of care represent the primary obstacle to accessing healthcare in the private sector, placing a substantial strain on our public health system.”

The company’s CEO posits that providing acute patient care in a home setting results in improved clinical outcomes and a better patient experience. This principle forms the foundation of Quro Medical’s operations, with a long-term vision to establish the largest virtual hospital ward in Africa, delivering superior clinical results at a reduced cost compared to traditional care.

A Safer and More Data-Driven Approach

Receiving healthcare at home can often feel more secure than a hospital environment, offering an additional benefit for Quro Medical’s patients. According to COO Pali, beyond the high costs associated with hospitals, patients also face the risk of acquiring hospital-borne infections. While it may seem that Quro Medical simply combines traditional home care with telemedicine, Pali clarifies that this is not entirely accurate.

The company integrates clinical data and remote healthcare monitoring to deliver real-time, data-driven clinical interventions.

Revenue Model and Reimbursement

Patients are admitted into Quro Medical’s care as an alternative to a standard hospital ward admission. The company generates revenue by submitting claims to medical aid and insurance companies, receiving payment through reimbursement. Additionally, Quro Medical collects out-of-pocket payments directly from patients.

The Impact of the Pandemic

The pandemic underscored the importance of the company’s remote patient monitoring services, a key component of its business that attracted investment from Enza Capital.

“As healthcare systems collectively struggle to care for patients outside of hospital walls – a challenge amplified by the COVID-19 pandemic – remote patient monitoring and healthcare delivery will undoubtedly be central to a lasting solution,” stated Mike Mompi, partner and CEO at Enza Capital.

Navigating Reimbursement Challenges

Despite the growing demand, health tech companies offering out-of-hospital services have often faced difficulties securing reimbursement for their services. Quro Medical, however, has experienced considerable success. The company reports successfully onboarding most major medical schemes (health insurance providers) in South Africa, representing over 90% of the country’s total medical scheme market.

Future Growth and Expansion

Quro Medical currently collaborates with approximately 150 doctors. Mhlomi believes his company is a pioneer in Africa, anticipating the emergence of competitors as trends in other markets develop. The company intends to accelerate its hospital-at-home services, expand its operations throughout South Africa to meet increasing client demand, attract and retain skilled personnel, and extend its reach into other African markets.

Dr. Penny Moumakwa, CEO of Mohau Equity Partners, commented on the investment, stating, “We are thrilled to invest in Quro. They have a dynamic management team and are building a global medical solution that will demonstrate the entrepreneurial capabilities of the African continent in advanced digital healthcare.”