“Amidst the pulse of medical breakthroughs and the rhythm of patient care, the Global Healthcare industry stands resilient. With life expectancy soaring across the globe—from less than 60 years in some Sub-Saharan African countries to over 80 years in Europe and Japan—our collective pursuit of well-being knows no borders.”
The operational framework commences with individuals experiencing symptoms of illness, prompting them to seek professional health consultations. Subsequently, comprehensive diagnostic tests are administered to ascertain the nature and severity of their conditions. Based on the diagnostic outcomes, a tailored treatment plan is devised, ranging from pharmaceutical interventions to therapeutic measures, rehabilitation, and, in more critical cases, surgical interventions.
The requisite medications are typically sourced through either local pharmacies or in-house hospital facilities. Pharmaceutical entities actively gather insights into evolving disease patterns by collecting data from medical institutions such as hospitals and pharmacies. This data-driven approach guides their strategic focus on manufacturing medications in high demand, prompting substantial investments in research and development.
Within the healthcare domain, the intricate facet of reverse logistics assumes a pivotal role in managing the disposal or treatment of used, expired, or unsafe medical products, including medicines, surgical tools, and gloves. Pharmaceuticals, cognizant of safety concerns, retrieve unsafe medications for proper disposal. Concurrently, other medical waste undergoes meticulous processes such as incineration, sanitation, or recycling to ensure responsible and sustainable waste management practices are upheld.
These points contribute to the increased costs of the healthcare industry in Bangladesh:
1. Shortage of Quality Healthcare Workers: Shortage of Quality healthcare workers often puts a ceiling on the number of patients an organization can serve. It includes longer wait times, medical mishaps and ultimately dissatisfaction of healthcare seekers.
2. Healthcare Infrastructure and Supply Chain Disruptions: Disruptions in healthcare infrastructure and supply chains, such as shortages of medical supplies or disruptions in transportation networks, can significantly raise procurement expenses for healthcare providers in Bangladesh. For example, during the COVID-19 pandemic, global shortages of personal protective equipment (PPE) led to inflated prices and logistical challenges in sourcing essential medical supplies, putting strain on healthcare budgets and increasing operational costs.
3. Easy and Cheap Access to Foreign Services: Despite efforts to improve local healthcare infrastructure and services, some Bangladeshi patients still seek medical treatment abroad, particularly for specialized procedures or advanced treatments not readily available in the country. This trend contributes to revenue losses for domestic healthcare providers and increases healthcare costs as patients incur expenses related to travel, accommodation, and treatment abroad.
4. Lack of Affiliated Services: Many healthcare facilities in Bangladesh operate without comprehensive affiliated services, such as diagnostic laboratories, imaging centers, or rehabilitation services. This forces patients to seek these services separately, leading to fragmentation of care and additional out-of-pocket expenses. Healthcare providers may incur higher operational costs by outsourcing these services or investing in in-house facilities, ultimately raising overall healthcare costs.
5. Government Ceilings: Government-imposed price ceilings on medical services and medications, aimed at ensuring affordability for patients, can constrain profit margins for private healthcare providers in Bangladesh. Limited reimbursement rates set by the government may not adequately cover the costs of delivering quality care, forcing providers to either reduce services or absorb losses, ultimately driving up healthcare costs for the industry as a whole.
6. Pressure for Investing in Technology: The increasing demand for advanced medical technologies and digital health solutions in Bangladesh places pressure on healthcare providers to invest in expensive equipment, electronic health records systems, and telemedicine platforms. While these technological advancements can improve patient care and operational efficiency, they also incur significant upfront and maintenance costs, adding to the overall expenses of healthcare providers and rising healthcare costs for consumers.
7. Dependence on Foreign Direct Investment (FDI): Bangladesh's healthcare industry relies on foreign direct investment (FDI) for infrastructure development, equipment procurement, and technological upgrades. However, dependence on FDI can expose healthcare providers to currency fluctuations, regulatory risks, and potential constraints on profit repatriation, which may increase the overall cost of doing business in the healthcare sector.
The revenue or growth drivers of the healthcare industry is mainly due to:
1. Demographics and Patient Characteristics: Bangladesh's booming population, coupled with an aging demographic, creates a rising demand for tailored healthcare services. For instance, the prevalence of chronic diseases such as diabetes and cardiovascular conditions among the aging population in Bangladesh underscores the necessity for specialized care and treatment facilities catering to these demographics.
2. Health Insurance Coverage: The health insurance coverage in Bangladesh is pretty low. As health insurance becomes more accessible and affordable, more Bangladeshis seek medical attention. Government initiatives like Swasthya Karta (health cards) and private insurance plans are driving healthcare access in urban and rural areas.
3. Advancements in Health technology: Health technology plays a pivotal role in shaping the healthcare landscape in Bangladesh. The introduction of telemedicine platforms like Telenor Health's 'Tonic' and technological innovations such as portable diagnostic devices have enhanced healthcare delivery in remote areas, addressing accessibility challenges and driving demand for healthcare services. The adoption of digital health solutions like mobile health applications and electronic health records systems streamlines processes, improves efficiency, and enhances patient care experiences across the country. For example, Praava Health, a digital healthcare platform in Bangladesh, utilizes telehealth services to provide consultations with doctors remotely, thereby increasing access to healthcare for individuals in underserved area
4. Government Policies: Government Policies wield considerable influence over the healthcare industry in Bangladesh. For instance, government investments in healthcare infrastructure and research and development, as outlined in the Health Sector Programme (HSP), contribute to technological advancements and improved service delivery. Additionally, regulatory measures implemented by the government, such as price controls on essential medicines, influence the cost and availability of healthcare services.
5. Disease Shifts: Disease trends also impact healthcare demand in Bangladesh. The rising prevalence of non-communicable diseases (NCDs) like hypertension and cancer underscores the need for specialized treatments and preventive care services. Healthcare providers in Bangladesh are adapting to these disease trends by expanding their offerings to include comprehensive NCD management programs.
6. Shifts in Consumer behavior: Consumer Behavior in Bangladesh, characterized by a growing awareness of preventive care and a preference for personalized medicine, shapes the healthcare industry. For example, initiatives promoting health education and preventive screenings, such as community health awareness campaigns led by organizations like BRAC, influence consumer behavior and drive demand for preventive healthcare services.
7. Globalization and medical tourism: This sector presents opportunities for the healthcare industry in Bangladesh but it is yet to gain traction in terms of ensuring quality service.
8. Mergers and Acquisitions: Investments in healthcare infrastructure and mergers/acquisitions within the industry drive growth in Bangladesh. For instance, collaborations between local healthcare providers and international organizations facilitate knowledge exchange and technology transfer, enhancing the quality of healthcare services available in the country.
The Porter’s Five Forces analysis for the Healthcare industry in Bangladesh are outlined below. These factors impact how businesses compete and conduct business in Bangladesh's Healthcare sector, hence defining the sector's strategic landscape.
1. Threat of New Entrants (Moderate): While regulations and licensing requirements exist, the private healthcare sector is growing, opening doors for new entrants, especially in niche areas.
2. Bargaining Power of Suppliers (High): Reliance on imports and limited local production make suppliers have strong bargaining power, especially for essential items.
3. Bargaining Power of Buyers (Low): Limited insurance penetration and reliance on out-of-pocket payments give patients little bargaining power, especially in rural areas.
4. Threat of Substitutes (Low): Traditional medicine and self-care practices act as substitutes in some cases, but access to quality healthcare alternatives is limited.
5. Rivalry among Existing Competitors (High): Intense competition among private hospitals and clinics for patients and market share, leading to price wars and service differentiation.
Numerous significant trends are propelling transformative advancements in the future of healthcare. Patient care is poised for a paradigm shift as digital health technologies and personalized medicine continue to proliferate, customizing treatments to suit the unique requirements of each patient and augmenting medical results. Furthermore, an increasing focus is being placed on preventive healthcare and disease management, with the ultimate goal of enhancing population health outcomes through the early detection and resolution of health concerns. The provision of healthcare services in rural regions has been made more accessible and equitable through the implementation of mobile health solutions and telemedicine, which effectively bridge geographical barriers and extend medical care to underserved communities.
There has been a substantial increase in financial support allocated to medical education and research, which promotes the development of novel ideas and guarantees a proficient labor force capable of addressing the ever-changing complexities of healthcare. Finally, it is imperative to establish a resilient healthcare financing system in order to support and finance these developments in a sustainable manner, thereby ensuring that medical care remains affordable and accessible to all. As a whole, these patterns portend a positive outlook for the healthcare sector, marked by enhanced results, availability, and effectiveness.
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