Market Entry Strategy And The Opinions Of Healthcare Professionals

If you follow the news or even studies conducted within the healthcare industry in India, you would realize that there is a blaring gap between the supply of healthcare services and the demand for it. This by no means is breaking news and has been a matter of concern known to most people, let alone professionals within the healthcare industry. There has been a burst of activity amongst players in the healthcare industry as well as those that are from other fields that now want to fill in these gaps. Plans range from the current established chains of hospitals looking to expand their footprints in new locations with a combination of full fledged and satellite centres, and reputed hospitals expanding their facilities, to doctor groups and non healthcare participants wanting to establish their own facilities, among others.

While it is easy to see the need for a concerted effort in establishing more healthcare facilities, particularly in smaller cities and towns, various factors need to be considered and extensive research must be put into validating these factors. If one ‘feels’ that a certain location requires a certain clinical establishment, the chances of being incorrect are significant. Similarly, you may have available land in a particular location and are keen to establish a heart centre there. While the idea is noble, it may be inaccurate in terms of the clinical specialty in this location. The health demographics play a vital role in determining the type of clinical services required in a particular region. Researched data comprising of demographics, incidence and prevalence rates of various ailments, available healthcare services and facilities, the penetration of health insurance, healthcare seeking habits to a certain extent, and even medical technology are extremely useful when devising a healthcare strategy for a new entrant in the. However, one must note that the frequency of the research conducted is not high and the last available data might be too old to consider for a current study. The healthcare landscape has been changing at a rapid rate and relying solely on secondary data of this nature for a hospital market entry strategy is ill advised.

To understand current trends and gaps, who better to seek out than the actual healthcare professionals and practitioners (general physicians, specialists, hospital administrators, etc.) on the ground whose consultations can be of strategic importance when formulating a healthcare market entry strategy.

• The information they have is time relevant compared to a study that may have been conducted in the past, even if it’s only a few months old.
• They also have information that is an amalgamation of practice and theory, and their experience in a given location is invaluable
• The information they have can provide very strategic insights into the healthcare market that can be useful for a new project as compared to a hunch based on a previous general study
• A healthcare professional that has spent significant time practicing in a certain location will have also seen the changing patterns in healthcare demand and delivery. Their opinions could also serve as a prelude to the immediate future.
• These professionals can act as your healthcare strategy consultants offering valuable insights pertaining to the level of footfalls within each clinical specialty, the level of medical technology available and lacking, the type of clinical and diagnostic services that are in demand and ones that are deficient, the healthcare seeking habits of patients, etc.
• While studies can provide information about the paying capacity of a population in an area, healthcare professionals can also shine some light on their willingness to do so, which is critical.
• While secondary data can provide us with information on the dearth of certain services and professionals in an area, healthcare professionals in that area can provide us strategic guidance for sourcing such professionals as well as specific professionals that patients seek for treatment
• Healthcare professionals during a primary assessment can also provide us with insights to a realistic pricing strategy that can be adopted for the services we intend to offer.

These are just a few of the compelling reasons why opinions of healthcare professionals can turn out to be the “strategic consulting” a new entrant in a healthcare business may need as their inputs would be current and practical in nature. They may not be in a position to divulge more critical information but they can certainly help in developing a market entry strategy for a healthcare facility.