Big is not always better. This is proving to be true in the case of big hospitals where profitability is like a malnourished child, stunted in growth. Also chipping away at their incomes are smaller hospitals, which are only going to get better, thanks to bait that the insurance regulator is dangling. Just about this time last year, in July 2016, it took a bold step. The Insurance Regulatory and Development Authority asked every healthcare provider—be it a 500-bed multi-speciality hospital or a five-bed nursing home—to achieve a certain standard of quality.
Move over big hospitals, lean ones could be closing in
The insurance regulator has set the trap—if a small hospital wants numbers that come with cashless insurance, it will have to deliver on quality. Can this new breed of small hospitals challenge the big ones?
In July 2016, the Insurance Regulatory and Development Authority asked every healthcare provider to achieve a certain standard of quality to attract patients with cashless insurance
The insurance regulator gave hospitals two years. A grace period that ends in July 2018 to meet the entry level standards laid down by National Accreditation Board for Hospitals (NABH)
Investors see the future of healthcare delivery in small secondary level hospitals, with the role of large multi-speciality tertiary care hospitals limited to conducting surgeries
The pricing walls closed in on big corporate chains nearly a decade ago. And the subsequent years brought a slowdown for multi-speciality hospital chains