Local is Drawing Closer

India started witnessing a healthcare revolution since 1990 with increasing momentum from the corporate sector; and the affordability boost from medical insurance. Two decades hence, we are now in the 2nd phase of this revolution. Rapid expansion in all forms; new players; huge investments; heightened patient expectations; all in all a completely new outlook. That means new challenges and new risks. And new demands; redefined accountability; talent crunch; mounting inflation and so on. This chaotic pace of expansion may end-up with a mass of under- or non-performing capacity - unless we as an ecosystem learn and participate in optimizing costs. Across the spectrum from large standalones to large and small chains and finally to the significant smalls - everyone will finally be dragged to play the cost-game. I clearly see cost to be the real driver. It will further become imperative for hospitals to find new ways to control costs. Add to it the uncertain balance of power between providers and insurers. Top lines getting insurance boost may get punctured suddenly.

Stating the obvious, the stretched affordability anyhow fuels price wars. But there is a big difference in price competitiveness and cost competitiveness. Focus is needed on getting cost competitive without opting for price over quality. Today?s environment is cashing on differentiating quality through superior infrastructure and patient experience. It will be difficult to make the current competitive advantage sustainable in the long-term as others will also adapt to service these newly created patient expectations. We have to consider the golden rule Healthcare is Local, that is, the patient will choose convenience of proximity wherever acceptable level of treatment assurance is available. With rapid advances all healthcare establishments are upping their levels. This is making local closer.