The fastest, cheapest business model for Emerging Markets
A mix of telco, telehealth provider and local outpatient clinics and pharmacies is likely to be the winning business model in Emerging Markets.
It is interesting to note that many pioneers in Emerging Market healthcare feel the same way. Helmut Schuehsler at TVM Capital has shunned large hospitals and inpatient facilities in favour of outpatient clinics (see interview). Mark Britnell, head of KPMG’s Global Healthcare practice, reckons that a trinity of telehealth, telco and outpatient clinics or pharmacies is likely to be the best way forward. In our recent survey of Mexico we found that small units with up to ten beds are the most profitable route.
And it is noticeable that smaller units where much of the action is. It is the route that Singapore’s Fullerton is adopting in building its South East Asia network. It is what MedicallHome, the Mexican player with 5m subscribers, is now doing in the Philippines, where it claims to have rapidly captured 20,000 subscribers working with a local telco.
Such an approach is much less capital intensive than the development of bigger facilities and enables an operator to swiftly serve many people and to start developing relationships in second tier cities and towns with many new customers.
The big question is can you export a business model from one country to another and rapidly roll out new greenfield developments somewhere else? A lot of operators – MedicallHome (going from Mexico to the Philippines and other Latin American countries), The Medical Center (going from the Philippines to the Gulf) or Fullerton (expanding from Singapore to South East Asia) – are betting on this. Healthcare Nova will be tracking their success over the next year – why not subscribe and join us on the journey?
We would welcome your thoughts on this story. Email your views to Max Hotopf or call 0207 183 3779.
