Trends in European health care - Roland Berger

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Study
Improving the value chain
The German health care providers – such as acute care hospitals or rehabilitation
clinics – have been forced to review their value chains. This had led
then to form partnerships with players who focus solely on business and the
cost-benefit ratio. Examples include the management of operating rooms by
external partners or the co-operation with facility management specialists.
This structure proves advantageous in a multitude of ways: The traditional
players can offer complex services instead of just individual products (see
the example of B. Braun in chapter 3.2), and – due to longer-term contracts
– continue to participate economically. In addition, these "integrated care
networks" enhance efficiency and quality. If a patient has to change their
provider, he or she can be offered a cost-efficient alternative with a comparable
standard of quality.
Building a secondary health care market
The amount the Germans are willing to spend on private health care
has soared in the recent past. Since preventative measures are only partly
covered by the health insurance schemes, this provides dynamic business
opportunities for both established and new players.
Adapting private sector management methods
Almost half of the beds in German acute care hospitals are still owned by
the respective federal state. Although this traditional structure frees the
owners from any responsibility for the economic situation, it is not expected
to change soon: The privatization trend of the recent years has ground to a
halt, in part because of the requirements placed upon private companies by
the Antitrust Agency. However, tight federal budgets have not been able to
finance all mandatory investments. Thus, Public Private Partnership (PPP)
or bank-financed models have grown very popular. Although these schemes
require higher interest rates, the costs can be off-set against an improved
infrastructure and an optimized medical process.
Marketing and Branding
In order to attract potential patients and clients more easily, German health
care providers are discovering the value of building a brand. A prime
example for a successful implementation is the German Charité hospital,
which we will discuss in more detail in chapter 5. Private hospital chains
have already undergone great efforts, and public and not-for-profit players
are now following suit.