Franchising is highly applied in the healthcare industry in both high-income countries and middle and low-income countries. Franchising consists of a vowed arrangement between the franchisor (one firm) and the franchisee (second firm). This way, the franchisee gets all the rights to promote services or goods under the brand name of the franchisor.
Dr.G.Balamurali a popular neuro specialist in Chennai has briefed us on how franchising in health care is valuable and types of franchise opportunities present in the healthcare industry. If you have plans to enter into the franchisee industry or wondering whether it works out or not, you will find this entire guide useful in taking the right decision.
When it comes to business franchising, one of the common methods of franchising is franchisee, who also gets the right to utilize the business format. It includes the specifications of services and products, support systems and brand name that are required to be delivered. At present, 42 franchises in different African and Asian countries were recorded by 2009. Trade magazines and websites document the survival of about 50 franchise methods in the USA under various kinds of care like pharmaceutical care, paramedical care, dental care, hearing and eye care, home care, and elderly care.
Franchising is highly utilized in high-income countries and middle and low-income countries as a structural model to manage various challenges in the healthcare industry. Several countries are challenged with inequalities in health and access outcomes, unreliable quality and increasing shortage of healthcare specialists and continuously increasing healthcare expenses. Privatization and high market competition in the healthcare industry in most developed countries are pushing care providers to adopt organizational models that can improve their survival probabilities and help in creating competitive benefits.
Franchising has the prospective to be an important organizational plan to organizations, society, and clients. However, the evidence base remains weak for strong conclusions. Franchises were performing exceptionally better or equal to the non-franchised healthcare organizations on client volumes, utilization, accessibility and certain kinds of quality care. The practitioners should discover the benefits of franchising by establishing franchises of several kinds of health care. Such developments have to be complemented with outcome and process evaluations to further analyze the original results of franchising in various contents to prove continuous investment is franchising is beneficial as an organizational form.
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Pharmaceutical franchise: It is the authorization of distribution and marketing rights offered by the pharmaceutical company to a pharmacy distributor or professional. In the last few years, there has been a strong growth trend in the pharmaceutical industry. This industry has witnessed high fragmentation and reasonable drug prices when compared with the structured markets. The pharmaceutical franchise industry is mostly driven by quality, low production expenses, skills, and knowledge. Because of this, there has been demand from the international and domestic markets.
Hospital franchise: One of the lucrative and attractive business opportunities in the world is investing in the hospital franchise. Some of the factors like change in disease profile, change in demographic profile, etc. are predictable to shoot industry growth.
Pathology and diagnostics: It is one of the highly fragmented industries as it contains more than 40,000 laboratories chains all over urban cities. The market has been growing at about 15 to 20%. By establishing a diagnostics center franchise in tier-III and tier-II cities, there are high chances of good profits.
Retail pharmacy franchise: One of the latest trends that are seen all over the world in recent years is retail chain pharmacy openings. It is said to occupy the second position in terms of share in the healthcare industry. Pharmacy retailing is becoming organized and has chances to develop as a retail pharmacy outlet in the future. Establishing a retail pharmacy franchise helps in earning exceptional profits.
Equipment and medical devices franchise: This industry has been developed in the last 10 years with industry and government taking various measures to grow the market. To step into this franchise business, one needs to get engaged with top medical companies through franchising and obtain handsome returns on the investment.
We hope you have understood how franchising in health care is important and also about different kinds of franchise opportunities.