The most sustainable healthcare businesses are those that make care accessible to the most people.
Affordable healthcare remains out of reach for many, with cost cited as a top reason that people skip care. When third-party insurers and hospital owners charge extortionate prices, reaping the profit and leaving crumbs for the healthcare providers doing the actual work, affordable care might seem out of the question. However, I believe that when you’re working in healthcare, you should solve the patient’s problem first—and then think about the money. In my experience, affordability and profitability are not in conflict. I believe the healthcare businesses that will win long-term are the ones that have figured out how to deliver both.
A Business Case for Keeping Costs Low
Many hospitals do not cater to lower-margin services because their operating costs are so high; the return is simply too small for them to invest in. A leaner healthcare business can serve those patients profitably where hospitals cannot, and in doing so, build a large, loyal customer base that a high-cost competitor can never reach. It’s a market opportunity hiding in plain sight.
Consider the thyroid test. Thanks to new technology, I can now sell one for RM1 (one Malaysian ringgit—less than $0.25 USD) instead of RM7, with the results delivered directly to the patient’s phone. Those savings pass to the patient. The same principle applies to equipment purchases. When a healthcare business buys in volume, suppliers offer substantial discounts, a discount that can be passed on to the patients. This creates more affordable healthcare—and it’s also good for business.
