Up until January 2015, Brazil’s hospital market relied primarily on local investors. However, a big change in foreign investment law has opened the door to global investors of the hospital markets, creating huge opportunity for hospitals to get a needed infusion of capital and thus serve more insured patients.
However, hospitals and investors haven’t always been great at articulating their investment thesis, therefore creating a gap between their suggested business strategies and the strategy execution that will raise value for investors and needed capital for hospitals.
L.E.K. Consulting believes the local market structure is the best starting point for a strategy between hospitals and investors, and asks three questions to help guide the strategic process:
- Is there space in the market for hospital infrastructure?
- How much competition is in the market?
- What is the relative balance between hospitals and payers?
Given the answers to these questions, L.E.K. recommends a three-prong approach to building a defined strategy that will attract the best investors to meet your hospital’s needs. In this Executive Insights, learn how a carefully considered strategy can benefit hospital businesses and potential investors, helping them adapt to structural realities in the local markets.