The healthcare sector in India is currently going through some seismic shifts. Healthcare CFOs and financial heads of organisations, therefore are trying to adapt to these changing environment and are formulating strategies that will facilitate in overcoming obstacles. Panelists, Yogesh Patel, CFO, HCG Group (moderator), Dinesh Mittal, CA and Financial Expert, Sumit Agrawal, VP Finance, Cloudnine Hospitals, Dilpreet Brar, CEO & MD, medCUBE, Anupam Verma, President, Wockhardt Hospitals and Ravi Bhandari, Strategy Consultant – Healthcare Services & Ex-CEO, Shalby Hospitals brought to light various multi-dimensional risk factors that impact the bottom lines of healthcare organisations. The key discussion surrounded subjects as such; core components of hospitals for managing financial risk, strategies for integrating risk management system within organisations, how to approach health IT and other capital spending initiatives, tips for managing a hospital’s investment portfolio as well as how organisation can improve balance sheets and achieve financial sustainability.
During the discussion experts pointed out on the three major risk factors- cultural integration, obsolescence risk, price changes in the market. They also talked about the current market dynamics that impact the financial strength of healthcare organsiations. Alarming the audience of the coming difficult times, they expressed that profitability will not be earned easily and collaboration would be crucial for future financial growth.
Moreover, panelists shared some examples of best practices that they follow at their organisations. They further urged organsiations to be fearless and put the right processes in place to tackle risk. Moving forward, the discussion also talked about the preparedness of organisations to align with the government’s Ayushman Bharat scheme. Experts contemplated on the financial investments organisations will need to do in order to be part of this scheme and how consolidation will be the new trend for the sector. Organisation big and small will therefore, need to be abreast for the same.
Key takeaways
- Healthcare face risks that are multifaceted and multi-dimensional. Three major forms of risks: cultural integration, obsolescence risk, price changes in the market.
- There are several uncertainties in the healthcare market today. We need to tabulate them and devise effective strategies to tackle them.
- Most private sector players perceive price control measures by the government as a major financial risk for private healthcare players. They believe that profitability will not be earned easily and collaboration would be crucial to future financial growth.
- If there were no capital markets and no risks, great innovation will never come about. Risks are not be feared, they need to be managed. Design the right processes and implement them right to manage risks.
- The private healthcare sector call for more inclusive planning. The government should include private healthcare players and other stakeholders while forming policies for price control in healthcare
- With the advent of Ayushman Bharat, we may see more consolidation in healthcare. Smaller players may consolidate and become bigger players to be more sustainable and profitable.
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