Some time ago, I wrote a series of blog posts offering tips and advice on how clinics and small hospitals can survive in an increasingly competitive healthcare environment. I was surprised to find that these articles became the most popular posts on my blog, as confirmed by Google Analytics and the Jetpack app. Some of my fellow healthcare workers also got in touch with me, asking me to write more on the topic—a clear sign that small healthcare facilities are indeed searching for ways to survive and stay relevant.
Reading through recent literature, I came across an interesting quote by Nitin Seth, the author of Winning in the Digital Age:
“If you do not think anew, someone else will cannibalize you.”
This is particularly relevant to clinics and small hospitals, which are being threatened by the huge expansion of corporate hospital chains, technological advancements, and shifting patient demands. Clinics and hospitals will be displaced by larger players unless they embrace innovation and flexibility.
The Hard Reality: Why Clinics and Small Hospitals Are Under Threat
The healthcare industry is transforming at a level never dreamed possible. Aggressively expanding are the large corporate hospital systems, capitalizing on sophisticated technology, vast capital, and high-tech marketing. Meanwhile, telemedicine and AI-driven diagnoses are transforming how patients are being treated, generally reducing their reliance on the traditional visits to smaller clinics.
Consider the case of a 30-bed hospital in a semi-urban area that thrived due to personalized care and patient relations. Two corporate hospitals, within a span of five years, opened nearby multi-specialty centers with state-of-the-art diagnostic equipment, robotic surgery, and a seamless digital patient experience. The 30-bed hospital, which was rooted in traditional patient interaction and word of mouth, lost footfalls gradually. Being unable to keep up with the times, it was ultimately shut down.
The message is clear: complacency is not an option. Until and unless small hospitals and clinics change, they will be outperformed, outspent, and ultimately outmanoeuvred by their competitors.
Revisiting Strategies: How Small Healthcare Organizations Can Survive and Prosper
Clinics and small hospitals must transform their mindset and take bold action to be competitive. Some key strategies are:
1. Implement Digital Transformation Wisely
Several small health centers still adopt traditional methods such as walk-in visits and paper records. Meanwhile, corporate hospitals are adopting AI-powered chatbots, app-based appointment scheduling, and electronic medical records (EMRs) to enhance patient engagement.
My senior colleague and a Mysore-based ENT Surgeon, Dr. Harindra Narayana successfully implemented an online booking system and teleconsultation services. This not only increased patient convenience but also helped the clinic reach more people beyond the local area. By adopting digital technologies, it created an alternate source of income and remained competitive.
2. Identify and Dominate a Niche
Competing head-to-head with large hospitals on all services is a losing strategy. Clinics and small hospitals must find a niche and become the experts in that niche.
There was a small Pune orthopedic center that was solely focused on non-surgical spine therapies. By promoting itself as the ideal option for non-surgery back pain therapy, it had a steady stream of patients choosing non-surgery over surgery.
Instead of attempting to do all things, excel in one.
3. Develop a Patient-Focused Brand
Today’s patients desire more than a medical cure—they desire a positive experience. Small hospitals have the clear advantage of being able to give personalized attention, which large corporate hospitals have difficulty doing because they are so large.
A Hyderabad-based children’s clinic established a child-friendly ambiance through play areas, interactive storytelling, and a mobile application providing parents with tips on child health. This patient-centric approach generated strong patient loyalty in the face of competition from multi-specialty hospitals.
4. Form Strategic Alliances and Networks
One of the most common mistakes made by small healthcare providers is to operate in isolation. By pooling resources with other small hospitals, diagnostic centers, and specialty consultants, they can enhance their services without having to make huge capital investments.
A group of small clinics in Chennai formed a strategic partnership in which each center specialized in one area—orthopedics, dermatology, ophthalmology, and gynecology. By cross-referring to each other, they provided a seamless healthcare experience, reducing the need for patients to go to larger hospitals.
5. Create Innovative Service and Pricing Strategies
Large hospitals have rigid pricing systems, which could be a disadvantage to price-conscious patients. Small hospitals can attract and retain patients by implementing new pricing strategies such as bundled services, membership plans, or family health packages.
One cardiology center in Delhi introduced a ‘Heart Health Subscription Plan’, where patients paid a low monthly fee to get regular follow-ups, discounted diagnostic tests, and priority appointments with experts. This generated steady income and ensured patient loyalty.
Learning from the Corporate Sector: Adapting Business Strategies to Healthcare
Small medical facilities can take a page from successful business strategies. Take, for example, Amazon, which didn’t fight brick-and-mortar retailers on their own grounds but remade convenience, price, and patient experience. Similarly, smaller medical providers must discover where they can outshine corporate hospitals, maybe through enhanced patient relations, specialty expertise, or nimble delivery.
As Steve Jobs would have said, “Innovation distinguishes between a leader and a follower.” The choice is clear to small hospitals: embrace innovation and lead, or resist change and get left behind.
Final Thoughts: Adaptability Is Key to Survival
The healthcare scenario will continue to evolve, and the challenges to small clinics and hospitals will only mount. However, by adopting an innovative strategy—using digital transformation, niche services, patient-centricity, and strategic partnerships—small healthcare facilities will not only survive but thrive in the new scenario.
To all the hospital and clinic proprietors out there: The time to change is today. Change is certain—either you lead it or get left behind.
What do you think? Have you incorporated any innovative methods into your practice? I would be happy to hear about your experience in the comments below!
Dr. Prahlada N.B
MBBS (JJMMC), MS (PGIMER, Chandigarh).
MBA in Healthcare & Hospital Management (BITS, Pilani),
Postgraduate Certificate in Technology Leadership and Innovation (MIT, USA)
Executive Programme in Strategic Management (IIM, Lucknow)
Senior Management Programme in Healthcare Management (IIM, Kozhikode)
Advanced Certificate in AI for Digital Health and Imaging Program (IISc, Bengaluru).
Senior Professor and former Head,
Department of ENT-Head & Neck Surgery, Skull Base Surgery, Cochlear Implant Surgery.
Basaveshwara Medical College & Hospital, Chitradurga, Karnataka, India.
My Vision: I don’t want to be a genius. I want to be a person with a bundle of experience.
My Mission: Help others achieve their life’s objectives in my presence or absence!
My Values: Creating value for others.
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Dr. Prahlada N.B Sir, thank you for choosing this highly relevant topic for small clinical setups like ours. Your insights are especially valuable for freshly passed out doctors, including specialists and super specialists, who often struggle to find their footing in the competitive healthcare landscape.
As you pointed out, many young doctors prefer not to work under someone in corporate hospitals, where they may feel stifled without opportunities for individual growth and development. Your emphasis on the need for small clinics and hospitals to innovate and adapt to stay ahead is well-taken.
In our medical profession, we must stay updated on the latest developments in diseases and treatments. Moreover, being available round the clock, at least over the phone, is crucial – after all, emergencies can arise at any moment!
To illustrate this, consider the example of a small clinic that implemented a telemedicine service, allowing patients to consult with doctors remotely. This not only increased patient convenience but also enabled the clinic to reach more patients beyond its local area.
Another key takeaway from your post is the importance of identifying and dominating a niche. By focusing on a specific area of expertise, small clinics and hospitals can differentiate themselves from larger corporate hospitals and establish a loyal patient base.
For instance, a small orthopedic center that specialized in non-surgical spine therapies was able to attract a steady stream of patients seeking alternative treatments.
In conclusion, your post serves as a timely reminder for small clinics and hospitals to think differently and adapt to the changing healthcare landscape. By embracing innovation, staying updated, and focusing on niche areas, we can thrive, sustain, and survive alongside corporate hospitals.
As you aptly put it, 'The time to change is today. Change is certain—either you lead it or get left behind.' Thank you for sharing your valuable insights, and I look forward to implementing these strategies in our own small medical setup.
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