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Hospitals, insurers rejig operations as DPDP kicks in next year

India's healthcare and health insurance sectors are accelerating efforts to strengthen data protection frameworks as the Digital Personal Data Protection (DPDP) Act comes fully into force on May 13, 2027, reshaping how organisations collect, process and safeguard personal data.
Major hospital chains and insurers say they are moving beyond basic compliance to embed privacy and security into their core operations, amid growing volumes of sensitive patient and policyholder information.
Narayana Health said it is aligning its practices with the DPDP Act while also navigating global privacy regimes. The hospital network has operations in India, the UK and the Cayman Islands.
“As a global healthcare organisation, we operate within a broader landscape of data protection regulations beyond the DPDPA,” said Jagadeesh R, chief digital officer at Narayana Health. “As far as DPDPA is concerned, we are taking measured steps, including updating privacy policies, strengthening consent mechanisms, conducting internal training, and implementing dedicated tools to support compliance.”
Manipal Hospitals, one of the country's largest hospital chains, said the organisation started its DPDP implementation journey about one and a half years ago, when the legislation was still in draft form.
The DPDP Act, however, significantly broadens the scope of responsibility beyond IT systems alone. “It is not only patient data anymore. Employee data, supplier data and third-party data that directly or indirectly processes our information also come under the Act,” Nandkishor Dhomne, chief information officer at Manipal Hospitals, said.
Dhomne acknowledged that DPDP compliance requires both one-time and ongoing investments. “There is an initial cost but also sustained spending to audit systems and ensure continued compliance,” he said, adding that from a technology standpoint, data protection principles are largely the same across industries.
In the health insurance space, ManipalCigna Health Insurance, a joint venture between the Manipal Group and US-based Cigna Corporation, views the DPDP Act as a turning point for the sector.
“Handling sensitive personal and medical information demands that insurers go beyond compliance and embed privacy and protection into every customer interaction,” said Sumeet Aggarwal, chief technology officer at ManipalCigna Health Insurance.
While compliance will require operational recalibration and investments in technology, he described it as an opportunity to modernise legacy systems and adopt privacy-by-design approaches.
With the 2027 deadline approaching, industry leaders agree that the DPDP Act is not just a regulatory requirement but a chance for building long-term trust in India's healthcare and health insurance landscape.
Source: EconomicTimes
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