Why holistic clinics are the future
publication date: Jun 23, 2010
Holistic clinics which bring together a series of specialists from surgeons to physiotherapists to treat a specific condition (anything from coronary conditions to pelvic floor) are tiny today. But they are the future. Here’s why.
From zero in the early noughties, specialist holistic clinics have grown to now account for sales of €350m in the Netherlands. That is still less than 1% of the total curative care budget, but the rise is fairly dramatic.
However, in many countries, this growth is likely to pale into insignificance compared to what will come over the next decade. Here’s why.
I think holistic clinics score on several grounds.
Better outcomes Willem Koelewijn, general manager at Dutch specialist Alant Vrouw says: If all you do is pelvic floors then you are likely to be expert at it.”
Proving that is difficult. According to Per Batelson, who heads up Global Healthcare Partners, Europe's only listed holistic clinic network, outcomes are not measured in any systematic way within the normal hospital network in any European country, so clinics can not compare their results to a norm. They are, however, taking steps to come up with results. In Batelson's case by comparing outcomes to those at Sana, one of the top four hospital chains in Germany. Meanwhile, Koelewijn says that patients intuitively get the idea that specialist clinics are likely to deliver better results.
Shorter queues These clinics bring together specialists under one roof. This makes it easier to ensure fewer delays. In the Netherlands they claim that the patient can start treatment within 3-4 weeks whilst in public hospitals he or she is likely to be passed from specialist to specialist with a further long wait for tests.
Better marketing Holistic clionics really score when it comes to marketing their services. This applies to Google, where it is still relatively easy for a specialist to work their way to the top for many conditions, but also to public relations. If all you do is pelvic floors, then getting press on the subject in women’s magazines and TV programmes is not difficult. You can build a strong and convincing brand presence in a matter of a year or two. General hospitals, which handle a vast range of conditions, are going to struggle to compete in these niche markets.
In a sense, these clinics are marching with progress, rather than against it. The dramatic rise in ambulatory day surgery helps. The rise of patient choice also favours them. And the concept of meshing together the set of specialist skills needed to treat a specific condition is attractive to employees and patients.
The one downside is, of course, payor resistance. But in the Netherlands this is melting away as the big mandatory insurers find that these clinics are often able to undercut hospital treatment by 5-10%. Even in NHS systems, such as Sweden, Per Batelson at Global Health Partners says that the NHS is prepared to finance treatment - although the UK is a lot less friendly.
Building scale will, however, take time. Most clinics have sales of only €2-3m per unit.
I think their growth is likely to be dramatic. This applies particularly where they have been able to demonstrate convincing proof of concept to consumers and referring GPs. These proofs are not as yet readily available. When they are, expect the sector to take off.