Sunday, March 2, 2014

The healthy you - an investor’s insight…


Healthcare industry in India is undergoing a transformation. From being a typical doctor-driven model, the entire industry is undergoing a transformation to become an institution which delivers with care. ‘Customer centricity’ is no more just a word of an internal market. It has started branching out in the need-based models as well.

There have been many hospitals which have identified & adopted the need of the hour and paying attention & extra care to the high-paying customers; but they seldom do it for the mid and lower mid strata that avail services. India being 70% at the bottom of the pyramid, word of mouth of a bad service is just a blink of the eye away. The perceived ‘inaccessibility of medical services’ is becoming a distant reality.

This being the scenario, the who focus of the industry has shifted towards delivering seamless services under one roof and hence retain the customers. From a management perspective, this means repeated business and probably an extended business at times where a relative comes over as well. But with every brand getting into being a multi-specialty unit, there is immense pressure on the people involved in the system to do it right.

Till date, the hospitals have been a basic necessity of mankind and hence there are funds allocated in the budget in the name of social welfare allocated to healthcare. The scenario has now changed with private players parking their presence in the sector. Especially in tier 1 cities, the focus on customer centricity has been really high to an extent where MIS parameters have now been defined to calculate ‘conversion’ (typically - how many actually took the procedure with the hospitals and how many went out…).

If we dig deep into it, everyone understands the fact that there is big money involved in the healthcare sector. The brands which have been existent since sometime now are seeking the help of private investors for expansion. The typical ‘Eskimo hunters’ are now creeping into the healthcare sector. This means, they need more means of giving awareness to the otherwise healthy community to indicate preventions. To put it in plain text - ‘we need more footfalls’ is the management motto.

There is a sad side to it as well… It is leading to a lot of ethical issues as the doctors are turning to be Eskimo hunters as they are given targets! Are we trying to cure ailments or create scare? Only time will answer it…

Though the interest of private investors is helping the sector to institutionalize, I feel there needs to be a broader thought of contribution from policies, ethics and professionalism which will help to drive it in the right way. Else, we may end up doing what we did back in the 1960s in the name of industrialization (cut all those bloody trees…)!

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