New Delhi: Small and Medium Enterprise (SME) hospitals are the backbone of India’s healthcare system, delivering a significant portion of healthcare services and accommodating a majority of hospital beds. However, these vital institutions face a multitude of challenges that threaten their sustainability.
India invests a mere 2.4 per cent of its GDP in health, ranking 174th in the world. This low investment makes it all the more challenging for SME hospitals. The NABH accredits a mere 2 per cent of India’s hospitals, making them far more disadvantaged in terms of quality perceptions.Patient preferences vary widely across income groups. Wealthier individuals tend to choose premium healthcare services offered by larger chains, while middle-income patients balance cost and quality by opting for private clinics or specialist doctors.
Low-income groups, often reliant on government healthcare schemes, frequently delay treatments or depend on SME hospitals for affordable care. This shifting landscape has negatively impacted SME hospitals, reducing their patient volumes and business performance.
SME hospitals face multiple operational challenges, including low occupancy rates, inefficient processes, and patient dissatisfaction stemming from long wait times and inadequate facilities. Larger hospital chains also outspend SMEs significantly in marketing, making it harder for smaller hospitals to attract new patients.
The main problems are lower ARPOB, perhaps due to the size of the hospitals. Big chains claim something like ₹50,000 of ARPOB, while SMEs range between ₹25,000 and ₹30,000. Therefore, ALOS in SME hospitals is higher, hence the costs and longer time for patients to leave.
The report indicates several strategies that would help SME hospitals overcome these challenges. Some approaches include enhanced revenues through cardiology, orthopedics, and oncology.
As far as group purchasing strategies, operational efficiencies for SME hospitals can be enhanced by improving their capacities to negotiate deals with the vendor.
Digital technologies are also changing the face of healthcare. Telemedicine, electronic health records, and online appointment systems enable hospitals to streamline services while changing them towards a much more patient-centric approach. Expanding telehealth services-especially in rural areas improve access to care while reducing costs.
