creating differentiation in healthcare provision in a competitive_mark adams_v4

Creating Differentiation in Healthcare Provision in a Competitive Market Place

GCC Healthcare Innovation Congress Mark Adams, CEO, Anglo Arabian Healthcare 25th November 2014


WHERE IS THE UAE HEALTHCARE SECTOR TODAY?

• Fragmented delivery of primary, secondary and tertiary care

• Multiple regulators with a level of disconnection across Emirates

• Polarisation of standards according to the ability to pay

• A lack of public confidence and too high a level of outbound health tourism

• Hostile relationships between Insurers and Providers• Over utilisation by some providers and over

rejection from some insurers• Mandatory Health Insurance slowly being

introduced across the UAE• Rapid expansion of the sector• Looming consolidation!

25 November 2014


DRIVERS OF CHANGE

Change

Healthcare

Funding

Technology

NewCompetiti

on

Super Brands

InboundInvestme

nt

Regulation

25 November 2014


FUNDING

• Mandatory Health Insurance is slowly being rolled out across the MENA region

• Health Insurance companies struggle to have a positive combined ratio. With low initial premiums and high benefits, Insurers are facing 95-120% combined ratios (administration costs and claims)

• Insurers will leave quality concerns to regulators and will push for the lowest possible prices.

• With a fragmented Insurer market, more and more will use TPA’s to aggregate their purchasing to drive down prices.

• We are already seeing Daman move to halve reimbursement for diagnostic tests in Abu Dhabi in a unilateral move

• Next we will see the growth of Networks where patients will only be allowed to go to approved clinics and hospitals

25 November 2014


TECHNOLOGY

Technology changes the game:• Internet empowers the consumer – researching

their illnesses and treatment options, checking out reputations of Doctors and Providers – Think ‘Trip Advisor’ for healthcare

• Surgical procedures are changing; Cataracts, Laproscopic Procedures, Robotics

• Doctors don’t need to be in the room; telemedicine allows access to the best specialist radiologists, geneticists and specialist consultations

• Diagnostic capabilities of new equipment, Stem Cell applications and Chromosomal modifications at conception – tackling thalassemia and other conditions – all point to a very different way of applying medicine in the future

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NEW COMPETITION

• There is unprecedented growth in new healthcare facilities across the region – 18 new hospitals are under construction in Dubai alone

• The DH is licencing 1.5 new facilities per day• Enlightened operators are building ‘feeder clinics’ to secure their

referral base into Secondary Care – 2-4% outpatient to inpatient referrals

• Market is segmenting into four categories of provider:1. Labour Camp (20%) 2. Low cost (50%) 3. Mid Market (20%) 4. Luxury(10%)

• Quality, Pricing and Customer Experience are all being challenged

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SUPER BRANDS

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INBOUND INVESTMENT

Private Equity Groups see healthcare as a growing, profitable and defensive area to invest in, they will help to continue market growth and consolidation;• Ithmar Capital, Farj Capital, Abraaj Capital, Al

WAHA Capital are just some of the investors specifically targeting healthcare

• Stock market Floatation's have also been successful with Al Noor and NMC and the Dr Moopen Group should list next year. Access to capital markets and Investors wanting to see continued expansion will also increase the consolidation of smaller operators.

25 November 2014


REGULATION

Regulation builds public confidence and allows systems to mature with the right checks and balances, however regulation will also:• Increase costs of operating• Force some historic facilities to close

(Hospitals in residential buildings, facilities without good access and egress, property without the right HVAC systems etc)

• Make it difficult for one man clinics to see patients and cope with the reporting and paperwork involved

• Drive out poor practices like referral fees and commissions to Doctors

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SO WHAT SHOULD EXISITING OPERATORS DO?

• Ignore?• Sell? • Retire?• Evolve?

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FORCED EVOLUTION!

Questions to ask?

1. What sector of the market am I targeting?2. How am I going to be sure that I remain empanelled on Insurer networks, what makes my facility

special?3. With the majority of the population moving out of the UAE every 3-5 years, how will I continue to

attract replacement patients to my clinic/hospital?4. How will I retain and attract good doctors in a very competitive new world?5. How good is my marketing, customer care, recall procedures, first impressions as you enter the

facility and are my staff brand ambassadors for me?6. For my specialty, am I really up to date and setting the right standard7. How am I able to demonstrate my commitment to quality?

25 November 2014


WHAT DOES BUILDING A BRAND MEAN?

For many Clinics and Hospitals in the region the basics are not even being met and there is a journey to reach an acceptable standard before thinking about outflanking the competition and differentiating the business model.In an era where we are dealing with SARS, H1N1 and Ebola, is your facility using modern sterilisation techniques, does it have the hand washing dispensers (regularly topped up) and are you clear on who is in charge of cross infection control, who is in charge of life safety, is your Head of Quality, Nursing and Medical Director appointed in each premises.Many facilities still don’t sterilise correctly, they wash endoscopes in the sink or use Sidex sterilising solution for other equipment. Unless the basics are in place no amount of marketing or cheap pricing will sustain the business for the long term.

25 November 2014


BUILDING A BRAND

• Be clear on what your service stands for; Family Medicine, Chronic Conditions, Well Man, Well Woman, Cardiology, Multi Service Polyclinic etc.

• Get the basics right: appropriate and trained staff, standard operating procedures in place, good and well maintained equipment, correct disposal of medical waste, code blue policies and equipped and maintained crash carts etc.

• Move towards ISO, JCI or equivalent standards• Make sure all staff have job descriptions and understand them• Reception staff are vital to any organisation, is the phone answered in a

maximum of four rings, do the reception staff stand up to greet a new patient, what is the average length of time for a patient to settle a bill

• Do you measure patient satisfaction and train accordingly?

25 November 2014


Hospitals

• We need to move away from small ‘General Hospitals’

• Dedicated centres of Excellence are the next stage in GCC healthcare

• Recent Examples:1. Imperial College Diabetes2. Moorfields Eye Hospital3. Burjeel and Medcare

Orthopaedic Hospitals4. Neuro Spinal Hospital

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For Many Small Healthcare Facilities the Brand is ‘You’

What is your personal brand?

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PLANNING FOR SUCCESS

• Appropriate investment into the facility for the sector targeted but cleanliness, clear policies on display and a visible commitment to quality and safety essential for all.

• Regular team meetings with review of successes and failures

• Strong patient engagement through social media, SMS’s and newsletters and regular recall for screening and check ups

25 November 2014

What to do wrong?

• Poor presentation of the facility• No visible commitment to patient safety

and quality• No training to staff at reception and poor

attitude in front of patients• No team culture • Invisible leadership• No SOP’s and staff guessing what to do• Communication with patients only if they

visit

What to do right?


STARTING TO DIFFERENTIATE

• Work with clinics who you respect to actively cross refer

• Work to build purchasing groups with other clinics to negotiate with Insurers on prices and discounts

• Offer local employers access to your ‘network’ for the different services that they need

• Invest in expensive diagnostics on a syndicate basis to maximise utilisation

25 November 2014

External Networking

• Corporate partners with special prices or Occupational Health services

• Schools and Colleges to build credibility with staff, pupils and parents

• Corporate Social responsibility, building credibility as a group who put something back

• Active development of relationships with journalists and broadcasters to offer expert opinion or even regular articles or radio shows

Build referral networks


MORE ADVENTUROUS DIFFERENTIATION

25 November 2014

Mobile Healthcare Homecare


TECHNOLOGY AND OTHER BUSINESS MODELS CAN HELP

• Work with partners to run HR, Payroll, Claim processing, Quality training, Customer Care and Marketing.

• If these business areas are not core strengths, bring in partners who free clinical time and avoid full time costs

25 November 2014

Technology

• Mobile applications exclusively for your patients

• Active management of patients with Diabetes, Asthma, High blood pressure or other chronic conditions – bespoke treatment plans, telemedicine, emails and newsletters

• Outsource some clinic functions to telemedicine partners for access to more expertise or second opinions

Outsourcing


WITH THE BASICS IN PLACE - GET THE MESSAGE OUT THERE

25 November 2014

[email protected]

www.angloarabian-healthcare.com

Office 101, 1st Floor, Ibn Rushd, Building 33, Dubai Healthcare CityDubai, United Arab Emirates

Thank You

creating differentiation in healthcare provision in a competitive_mark adams_v4

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