Karan Rekhi, CEO of consultancy firm Forte Healthcare, has observed that healthcare chains were seen to be more resilient than their counterpart, the humble standalone clinic
These chains benefited and cut costs as they were able to shuffle their staff, rotations, and rapidly make adequate adjustments within their facilities to accommodate the changing landscape.
Standalone clinics, alternatively, were forced to shut down operations entirely and made to implement solutions upon reopening, functionally arresting their operations with alternative patient flow management as advised by regulatory authorities.
Services provided involve establishing an institution right from its commencement; from the basics of strategic business planning, executive searches, and operations management, to specific healthcare-related actions such as equipment planning, healthcare management, and business setups. They warn that the upcoming 18 months will drastically shift dynamics in this sector, but with proper guidance moving forward, should not be an area of concern to investors of big chains.
Forte Healthcare provides excellent advisory services to healthcare investors and institutions, and have successfully catered to more than 116 startups for more than two decades. They established last year in The UAE, with a vision to endorse diversity and novelty in the field of healthcare.
“Due to heavy financial investments made before lockdown, borrowing interests piled up on many healthcare clinics, leaving them with few options on recouping losses.” Rekhi reflects.
The UAE underwent a mandated two-month lockdown at the beginning of 2020 to contain the virus, initially seen as a source of dismay to investors. “Lockdown was painful for many sectors and healthcare was undoubtedly one that took a hit,” Rekhi claims, “however, these businesses managed to rebound in some aspects.” There also have been many new entry players for hospitals and clinics who have entered the healthcare segment mostly international investors and operators.
Mainframe hospitals and healthcare chains saw a rise in hospital efficiency and financial improvement, as corporations realigned themselves to adapt to the changing climate. Tele-health and online consultations, additionally, came to the forefront at this time, benefiting both the patient and the institution.
Following the strenuous lockdown period, purely outpatient clinics suffered closures from authorities - the lack of a chain comprehensive reaction seen in bigger hospital setups was required to keep up with the backlog of delayed day surgeries. Rekhi, backed by his team at Forte Healthcare, remains optimistic that breakthrough plans to revive smaller clinic operations post-pandemic will transpire.
He deduced that small clinics and elective surgeries should be merged into larger hospitals, as this particular market calls for consolidation and integration. Big institutions would benefit from additional income, while the smaller clinic could use the provided facilities to carry out business as per normal. As progressively grander facilities open up in the region, any business growth will subsequently be divided among units, leaving standalone clinics with a net loss in yearly income, should they choose not to integrate.
Healthcare across the region varies widely - while some countries relish world-class centres and facilities, others lack basic long term care. Utilising their professional talent and indispensable expertise, Forte Healthcare aims to unify the global landscape of the healthcare industry as a whole, allowing for a more fruitful and robust approach to health management.
