So what did we learn at HBI 2017?
The biggest “Aha!” from Healthcare Business International 2017 was the impact that digital patient platforms are going to have on consolidation. We got 570 delegates from over 50 countries to the event in London which makes it the largest global conference for the private health care sector, with combined operator revenue of nearly $100bn.
Health care providers who have a lot of patient touch – that see patients several times a year – are the only providers who will be able to build meaningful digital platforms. Why, as a patient, would I want use the platform of a hospital where I had a hip replacement five years ago?
But I will want my data to be with the provider where I see a doctor 2-3 times a year. And I will want to be able to text and Skype with my doctor there, regularly. And a good digital platform will stop me from straying. Why look elsewhere if the app gives me access and data? Big Finnish outpatient groups like Mehilainen and Terveystalo are leading the world here.
Click here to see Mehilianen’s CEO Jan-Olli Järvenpää’s presentation.
So the combination of outpatient services, primary care, some tests and a good digital health platform is massively compelling. And the more touch the provider has, the greater the lifetime value of the patient and (most importantly) their family to the provider.
This means that unsexy, low margin, but high patient touch sectors, like primary care, will suddenly become crucial. And we will see a lot of acquisitions across sub-sectors with labs adding primary care, or hospitals adding outpatient imaging. All this is much easier to do in Emerging Markets than in Europe, where pesky payors and regulators will keep operators stuck in silos in many countries.
Where will it end? We reckon we will see the development of three to four global healthcare service brands seeking to meet patient needs from the cradle to the grave, each with sales of €80-100bn+, and a web of outpatient centres and hospitals covering cities and countries. Such groups will incorporate insurance and elderly care as well. In 10-20 years, these brands will be as well-known as Apple, Google or Coca-Cola and as international. That is the future.
We would welcome your thoughts on this story. Email your views to Max Hotopf or call 0207 183 3779.
