26 August 2025
Chitradurga.

The fifth and one of the most essential survival strategies for small Indian hospitals, using the McKinsey 7S Model amidst increasing corporatization, is leadership style. I remember reading an excellent book, “Who Says Elephants Can’t Dance?”, in which Lou Gerstner wrote about his historic achievement of bringing IBM back from the brink of insolvency to lead the computer business again.  I would say that “Little rabbits can dance“, too.  Last week, Gajarat’s Bharuch-based 25-bed cardiac hospital Maple Hospital raised ₹4.02 Cr in the smallest IPO at a valuation of ₹15.2 Cr.  It oversubscribed 356 times and closed with a 90% premium on the first day of the listing on 21 August 24.  It clearly indicates that we are entering the era of Tier-2, single-speciality, doctor-run hospitals.  A month back, Kolkata-based, doctor-run, end-to-end kidney hospital chain Nephrocare India raised ₹41.26 Cr and was over-subscribed by 715 times.  Most of the big corporate hospitals or hospital chains in India started small; thus, every small hospital in the country has similar potential.  In this article, I will quote the people and hospitals that started as small.  The success story of all these hospitals boils down to one of the most critical factors: the leadership style.  

In the healthcare sector, leadership means more than just managing resources and seeing that everything is efficient; it is all about inspiring and motivating the entire workforce to do their very best. The latter is true because the leadership style is significant for small hospitals where, in reality, the organizational structure is less hierarchical and more personal. This may have a large impact on the hospital culture, performance, and the ability to compete in a corporatized healthcare environment. The best style for leading small healthcare settings is transformational, with visibility, approachability, and hands-on involvement. In this article, learn how the leaders in small hospitals could assume and implement this style to establish an environment of motivated innovators working for patient care, with an underpinning of actual examples that have been implemented.

The Impact of the Style of Leadership on Hospital Culture

The culture of a hospital is likely to result from the dominant leadership style. In small hospitals, where leaders likely have face-to-face interactions with both staff and patients, the effect of leadership on the overall culture is felt to an even greater degree. An accessible, approachable leader who exhibits a strong commitment to the hospital’s mission sets a powerful example for the entire team.

Effective and Engaging Leadership: Visibility and Accessibility

In a hospital, visibility in leadership is an essential skill. Leaders who are approachable to staff, patients, and their families facilitate a relationship of trust and communicate to all their open-door policies. For example, Dr. Devi Shetty, founder of Narayana Health, is known for being very hands-on with his approach toward leadership. Dr. Shetty heads one of the largest hospital chains in India, yet he regularly walks into the wards to visit patients and is part of the decision-making process. His approachability and real commitment to patient care have really helped in building a very strong team at Narayana Health where every person working feels valued and hence motivated to contribute to the common mission of the hospital. In small hospitals, where staff members must wear many hats, the visible and accessible leader may serve to reduce stress and increase morale. Just being present and showing a genuine interest in the well-being of both the patient and staff creates an environment of support and inclusivity within one team.

Living by Example: Dedication to Patient Care and Excellence

Leading by example is one of the foundations of transformational leadership. The hospital leaders set the bar for commitment in delivering excellence for patients and in operational performance. Dr. Prathap C. Reddy, chairman of Apollo Hospitals Group, has lived by this precept from the outset: quality care, ethical practice, and innovation in health care. Under his leadership, Apollo Hospitals has become a yardstick for quality in Indian healthcare. It paved the way for many other healthcare providers in the private sector. This is the only kind of leadership that should be at the helm in smaller hospitals. When leaders show they are ready to do anything for their patients—whether that is staying up at night to ensure some critical procedure happens alright or coming back to check the recovery of a patient—they invite their staff to commit at the same level. This, in turn, significantly boosts the outcomes of patients and builds an atmosphere of excellence that gets reflected in all spheres of hospital operation.

Transformational Leadership: Inspire and Motivate Employees

To be considered a transformational leader, one must inspire employees to go beyond what they believe is achievable. In the small setting of a hospital, where resources are limited and challenges are many, this leadership style could especially be effective at driving innovation and continuous improvement.

Fostering a Collaborative Environment: Empowering Staff to Innovate

A key aspect of transformational leadership is fostering a collaborative environment where staff feel empowered to share ideas and take initiative. When employees are encouraged to contribute their ideas and solutions, it leads to a more dynamic and innovative workplace. HCG Cancer Hospital in Bengaluru exemplifies this approach. With Dr. B.S. Ajaikumar at the helm of affairs, the hospital breathes an ethos of togetherness and innovation. His style of leadership motivated other staff members to create and institute advanced treatment protocols and patient care models, thus scoring great improvement in patient outcomes. In small hospitals, leaders can create such environments by involving every level of staff in the decision-making process, ranging from nurses to administrative personnel. By providing a forum for everyone to have an input and giving credit to every member of the team, leaders achieve ownership and pride among the members of staff. This always translates into practical innovations that can boost the efficiency and care for patients in the hospital.

Promoting Continuous Improvements and Adaptation to Changing Health Landscapes

A lot is changing in health, and for the small hospitals to survive, they have to be very agile. With very high standards in the set and the challenge toward this character, transformational leaders play a crucial role by setting these higher standards—challenging their teams always to find ways to make things even better. Dr Naresh Trehan, Founder of Medanta – The Medicity, has been one such great votary in believing for continuing excellence in health care, urging this belief by being in practising ways of staying ahead in trends, embracing the best of current technologies, and continually honing patient care processes. It can take many forms, from honing administrative processes to constant improvements in adopted medical technologies, even in the smallest hospital. Leaders can establish this culture by showing that the innovative ideas of staff are valued and rewarded; after all, motivation should be an effective motivator. It’s why, simultaneously, they need to provide opportunities for the further professional development of staff and cultivate the vision of every person being a lifelong learner. This way, they ensure that the hospital remains competitive and can serve patients with quality even in a difficult healthcare environment.

Real-World Examples of Transformational Leadership who started small: Dr. Kiran Mazumdar-Shaw at Narayana Health’s Mazumdar Shaw Medical Centre

One example of an important transformational leader in the Indian biotech industry is Dr. Kiran Mazumdar-Shaw. She has taken her transformational leadership style from the biotechnology sector into health through her work with Narayana Health’s Mazumdar Shaw Medical Centre in Bengaluru. Her leadership style emphasizes innovation, patient-centric care, and collaboration. Dr. Shaw has been the one to incorporate advanced research into clinical care, which in turn has developed the environment of medical professionals and researchers working in line with them to develop and offer advanced treatment protocols. Her approach, for one, has improved the treatment process in its efficacy toward better patient outcomes but also placed Mazumdar Shaw Medical Centre as a leader in oncology care.

Wrap-up: The Power of Leadership in Small Hospitals

In small hospitals, the leadership style is what can determine the success and failure of the organizations. Good leaders who take on the transformational style are seen, available, and involved; they inspire the staff to offer optimum patient care. It creates a culture of collaboration, continuous improvement, and survival by these small hospitals in this intense marketplace of health care. The examples provided from real settings here are going to show that, with good leadership, small hospitals might not just survive but also set new standards in providing quality healthcare that is very patient-centered.

Dr. Prahlada N. B
MBBS (JJMMC), MS (PGIMER, Chandigarh). 
MBA (BITS, Pilani), MHA, 
Executive Programme in Strategic Management  (IIM, Lucknow)
Senior Management Programme in Healthcare Management (IIM, Kozhikode)
Postgraduate Certificate in Technology Leadership and Innovation (MIT, USA)
Advanced Certificate in AI for Digital Health and Imaging Program (IISc, Bengaluru). 

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