Strategy, collaboration, capital and people skills key to success for healthcare industry
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In today’s competitive and evolving healthcare industry, aligning clear goals to strategy, access to capital to accelerate scale or growth and staff engagement are crucial, according to Macquarie Business Banking’s Perspective on Health Business Models report.
Changes in the economic backdrop, advances in technology and the ongoing impacts of the pandemic have reshaped the trajectory of the healthcare industry, requiring more focus on strategy building sustainable medical businesses.
Adele Creighton, Head of Healthcare at Macquarie Business Banking said being clear on business strategy, the roles and responsibilities of people, how patients’ needs will be met and accessing capital have become an even more important part of delivering successful outcomes.
“Operating or building a business in this dynamic landscape can be challenging and costly, and one solution some of our clients have adopted to mitigate this is through collaboration with peers to form a business, which can help with the cost of equipment, wages and new technology,” Creighton said.
“Choosing an appropriate business model is crucial for long term sustainability and profitability, particularly when seeking growth opportunities and creating business value.
“At Macquarie Business Banking, we’ve observed and assisted in the growth of medical businesses by transitioning from consulting to larger models, where economies of scale can lead to more profitable business outcomes and enhanced patient service offerings.”
Creighton said transitioning between business models requires strategic thought on how this growth and transformation will be implemented.
“Choosing an appropriate funding source or bringing partners into the equity ownership could accelerate business growth and create a robust succession plan. While this can create complexities, multiple owners can bring together diverse perspectives, help to spread risk, and enhance business value by enlisting a wider pool of further incentivised revenue earners,” Creighton said.
“And of course, the expertise and service offered to patients, caregivers, referral partners, suppliers and colleagues remains fundamental to driving business’ value.”
Creighton said in a people focused sector, staff engagement, as well as a positive patient experience play a key role in success.
“It’s critical to build a medical business that provides colleagues and staff with opportunities to participate in ways they feel motivated and aligned to the business vision,” Creighton said.
“Our 2022 Business Barometer research showed that 66% of healthcare business owners see attracting and retaining staff as a significant challenge, with 24% reporting that staff were exiting the healthcare industry entirely. In response, 66% are providing more flexible working arrangements, while 83% are recognising workplace culture as important as salary when attracting staff.
“In an extremely competitive and historically tight labour market, with a shortage of skilled doctors and support staff, recruitment and retention strategies are critical to immediate and enduring success. Businesses require a clear business strategy and a supportive workplace culture to achieve this,” Creighton concluded.
To access the full report, fill in the form below:
Ritchelle is a Content Producer for Healthcare Channel, Australia’s premier resource of information for healthcare.
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