How healthcare brands can strategize as per changing business environment for maximum brand value

Private hospitals, which were once seen as a profitable business opportunity in Indian healthcare sector, have been going through a rough patch in the recent times. Even though their prime areas of focus have been on building infrastructure, interiors, facilities, customer services and advancements in technology, today, most of them are in a period of consolidation. With low margins on one hand and rising costs on the other, profits at corporates hospitals are souring.

With that said, what can be the way forward for these hospitals to increase their brand values and gain a competitive edge?

Pricing

Investing in healthcare with a strong commitment to prioritise quality healthcare above everything else can enable the healthcare providers to stay the course. As per the analysis done by Brandzwatch across various healthcare chains, one thing is certain – hospitals need to maintain a balance between patients’ budget and their medical expectations to stay afloat and maintain their patient footfall. This is because, healthcare is one such market that caters to a price-conscious customer base. Many hospitals have been upgrading their infrastructure, medical equipment and leveraging the latest technology, but all of these hold no value if the cost of treatment is way beyond what a common man can afford.

Value-based Healthcare

As India moves towards a public-funded universal healthcare, it is imperative that healthcare providers measure success not by quantity but by value. Value-based healthcare is a framework of focusing on improved outcomes at a reduced cost. For a private chain of hospitals, value should pertain to various factors including complex to simple surgical procedures, recovery time, length of hospitalisation, rate of re-admissions, etc. By taking these metrics into consideration, hospitals can drive best business practices to improve patient outcomes.

Customised solutions

It can be undoubtedly challenging to deliver a value-based healthcare however, companies will be required to go an extra mile and come up with customised solutions. Considering the mature IT sector that our country boasts of, healthcare brands can also adopt technology as a means to ensure the delivery of the best possible care. Digital tools and technology are within hands reach in today’s time which they can leverage. In addition to this, they can consider diversifying their services all the while keeping the pricing and expenses at bare minimum.

According to many healthcare experts, developing alternative channels such as establishing presence overseas can also boost the patient footfalls for healthcare companies. For this, business models have to be tweaked accordingly. Most of the top hospital chains in India are multi-specialty, providing world class treatments. Acquiring certifications from other countries can serve as icing on the cake for promoting services in international markets. Furthermore, convenience and efficiency for patients should also be taken into consideration whether it is in terms of travel or accommodations. India is already known for high standards medical treatments at competitive price however, accommodations and infrastructure facilities are the major factors refraining the country from becoming a medical tourism destination.

With the changing business environment, hospitals need to realign accordingly. This includes cost-efficiency, adoption of new-age technology and prompt delivery all the while ensuring that the main social impact factor is not being overlooked.