Business Model Innovation in Health Care Infrastructure in India
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Healthcare is a fast evolving sector, where global trends force healthcare providers to adapt quickly their business models. India is at the crossroads of an exciting and challenging period in its history. Making healthcare affordable and accessible for all its citizens is one of the key focus areas of the country today. India lacks strong healthcare infrastructure, on the other hand, the country has several inherent weaknesses in its healthcare system. This article focuses on the recent business model innovation of healthcare providers their drivers, characteristics and the effect they have on these firms and the sector as a whole. Healthcare providers are starting to innovate their business models in order to respond to new trends, which are also redrawing the industry architecture of the sector. The recent business model innovations reveals that incremental innovations, such as within-discipline grouping, aim for conservative forms of value gains such as cost reductions and efficiency and rely on strong forms of grouping, such as mergers and acquisitions, to accomplish this. On the other hand, more radical business model innovations, such as competitor- groupings, are incited using value drivers like novelty and innovation potential, and these innovations are implemented through more novel and less stringent governance mechanisms. Though the costs involved in the complete upgrade of the healthcare sector are huge, there are enormous pay-offs in long-term investments in this sector. This will not only raise the quality of life for all but can also make the healthcare industry in India, a key enabler for economic growth.