Changing with the times is the key to success. Healthcare is an ever-evolving segment. Newer technology and novel procedures are being discovered by the minute in this field. Every physician should make the commitment of bringing these advancements within the reach of the masses.  If you feel that your hospital should be part of this evolution, you may have to think about expansion of their hospital’s facilities.

Moreover, expansion can help you tap unexplored markets, cater to a wider patient population and improve your profits.

However, remember, expansion is no bed of roses. It is a tough and tedious task that will eat your time, drain your resources and sap at your energy. It will require strict financial scrutiny and assessment of your strengths and weaknesses.

There are different types of expansion strategies in healthcare.

Some hospitals may want to access newer markets; they may want to reach newer places like tier 2 or tier 3 cities. They may want to tap new markets and leave a bigger footprint. This can be on a regional or a national or a global scale. This will involve starting a chain of hospitals. This can be referred to as Geographical expansion.

Other hospitals may want to diversify to newer segments. This can add on to the basket of services being offered to their patients. This will be a synergistic advantage to both the hospital and the patients as gaining access multiple services and facilities under the same roof will be beneficial for the patients and profitable for the hospital.

e.g., A gynaecological hospital expands to house an ultrasound unit and a neonatal care unit within its premises.

Some hospitals may want to expand because they want to break new frontiers in technology. To reach this goal, they will need advanced equipment, space to house these machines, workforce who will operate these machines etc. This type of expansion will necessitate an in-depth analysis of technical challenges.

Some hospitals aim at expansion to provide more space for the convenience of their workforce and the comfort of their patients as their footfall increases.

If you make an in-depth study of these points, you can make your expansion tale a sterling success story.

1. Define your expansion target

As a healthcare entrepreneur, you will have to first define your goal so that you can exactly know where you stand. Before jumping into the band wagon, carefully oversee the growth opportunities and assess the pros and cons of each option with reference to your goals, as well as your core strengths and weaknesses.  Try to map your future milestones in terms of benchmark, return on investments and profits. Define a timeline to chart your goals so that you can trim and tweak your plans if you are falling behind your targeted milestones.

2. Invest in a feasibility report

It is always better to know in advance if your dream expansion project is not simply an aspiration but a practical and profit-making scheme. A feasibility report developed by experts can help you predict this before you make any costly and irreversible mistakes.

3. Define your budget

You should have lucid clarity about your budget and your expansion plans should be properly aligned with your financial capacity. However, at the same time, you should remember that cutting corners in the present can lead to more costs in the future. Budget allocation and planning should be done with careful consideration to future needs, regulatory norms etc.

4. Think about the extra funds

Expansion will require additional funding and you may have to avail of loans from banks or other financial organizations. So be sure to have a sturdy business plan ready and assure that your previous financial records are impeccable.

5. Analyse your existing facilities

You will have to evaluate the operational efficiency and cost-effectivity of your existing facility’s space, equipment, operations and workflows. Your team and a panel of experts will have to evaluate and assess the operational functionality before zeroing in on what will work best after the expansion has taken place. This merger has to be done in an efficient and seamless manner.

To summarize, expansion in healthcare is a tough proposition. It involves multilateral planning, organized execution and tedious legwork at every stage. As a busy physician, you may not have the time to invest in every step of your expansion endeavour. If this is the case, you can rely on Hospertz, a leading hospital consultancy firm of India. We have a team of experts who specialize in helping hospital entrepreneurs in every stage of hospital planning, operations and expansion.

Blog has been written by Dr. Vishal Jadhav, a veteran in the field of hospital consultancy with a rich experience of more than 20 years and founder of the Healthcare Consultancy Firm, Hospertz.

Dr. Vishal Jadhav, Director
hospertz@gmail.com
+91 9867712705/ 9820833149