Many companies and institutions, especially those looking to grow quickly within a certain time period, inevitably tend to expand their service portfolio and/or reach. They want to stand out from the crowd and offer comprehensive, end-to-end solutions that meet a whole range of needs and appeal to a much wider audience across a larger geographic area.
At first glance, it may seem like this strategy would make a company more attractive to potential customers or shareholders, but in fact, broad diversification comes with a number of disadvantages. This “wide scaling” strategy may not be the best choice, especially in the healthcare sector.
First, demand is a key driver for expanding product or geographic choice. The healthcare market, especially in India, is still vastly underserved. The growing burden of disease in the country, coupled with higher life expectancy, greater willingness to spend on healthcare and growing insurance penetration are just some of the many reasons for the increasing demand.
Second, this approach results in expertise and resources being spread across many services and products, limiting focus. For hospitals, hyper-specialization is the need of the hour as specific conditions require targeted care and attention from professionals who have extensive training and experience in that specific area. Specialists are also better able to stay updated with the latest advances and treatment protocols in their field. That is why, despite the rise in multi-specialty hospitals, we continue to see a greater focus on one to two or maximum three specialties as “centers of excellence”. Building healthcare infrastructure requires significant capital and has long payback periods, so optimizing both capital and resources is crucial.
Third, a one-size-fits-all approach simply cannot work in a field such as healthcare. Patients have different backgrounds, different needs and sensitivities, and every medical case is unique.
The era we live in is one of personalization in all areas, and healthcare is no exception. Patients with complex conditions expect personalized treatment tailored to their individual needs and requirements. In addition, personalized care can significantly increase patient satisfaction and adherence to treatment plans, leading to better health outcomes. While there are standardized protocols to ensure that no unintentional errors occur, the high variability within each patient justifies personalization.
Finally, the logistics involved in managing a sprawling healthcare system with a wide range of services pose significant practical challenges. Managing a wide range of services often leads to inefficiencies as resources are spread thinly and coordination becomes increasingly complex. This can lead to potential gaps in care where patients may receive ineffective treatments due to a lack of specialization. This problem is further exacerbated by the concentration of key health workers in certain urban areas. This is a major reason for the urban-rural healthcare gap because although nearly 65% of Indians live in rural areas, the healthcare equation is reversed, favoring urban markets.
On the contrary, a more focused approach can produce better results in both quality metrics and business outcomes. And there are many national and global examples of focused players with successful delivery models achieving a much greater impact. Experts who understand the intricacies of a specific disease or condition provide better, improved care to patients while improving communication and trust. Creating evidence-based treatment plans and targeted treatment protocols tailored specifically to a specific patient population enables faster recovery times and greater efficacy. Healthcare providers can also streamline their operations and ensure the effective delivery of high-quality care by focusing their resources on a specific area.
A good example of specialized solutions with many benefits is the field of home care. The goal is to provide medical treatment in the comfort of patients’ homes, meet special needs, and provide convenient and personalized healthcare to those who need it most. Companies that offer home care services can tailor their programs to the specific needs of patients recovering from surgery, managing chronic diseases, or requiring rehabilitation.
The healthcare sector ultimately depends on precision, expertise and effective treatment. While “scaling broadly” can enable rapid expansion, it also brings its own challenges given the volatility of demand, limited choice of supply in expansive markets and essentially limited focus given the distribution of bandwidth.
Conversely, a more focused approach that looks closely at service and market options can lead to better and more sustainable results.
(Vishal Lathwal is CEO of Apollo Home Healthcare, Apollo Hospitals)
(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)
