Franchising Healthcare, Digitalization, and Scalability

When discussing healthcare, a premise must be made: this term does not refer to wellness and cosmetics but rather to health in general, including hospital settings.

On the contrary, technological evolution and social changes in recent years have led to a considerable growth in the sector, transforming its composition and making it one of the most economically interesting (and not only) sectors, thanks also to the emergence of numerous startups and the development of innovative services available to all patients.

It is no coincidence that in recent years, franchising healthcare has attracted the attention of multiple investors who have seen its potential in terms of economic returns and technological development. This has made this sector a driving force for the entire economy, realizing growth trends superior to the average.

Would you like to discover the secrets of how the franchising formula works?

Healthcare: Global and Italian Spending.                         

In 2021, the United States will spend around $11,356 per capita on healthcare, while in Pakistan, barely exceeding $50 per capita. And in Italy? OECD countries spend an average of $3,992 per capita, while Italy stops at $3,428 per capita.

Italian citizens supplement deficiencies in public spending with direct purchases. Although our annual growth rate in current health expenditure per capita is only 0.2% (ahead of only Greece, France, and Mexico), the direct spending of Italian citizens, in terms of purchasing power parity, exceeds the OECD average, with $791 compared to $716, surpassing other partner countries such as Germany ($738), the United Kingdom ($629), and France ($463).

Equally positive and above-average data are those related to spending on pharmaceutical products (such as prescribed and over-the-counter medicines). In Italy, in fact, 17.5% of current health expenditure is directed towards this merchandise segment, for a current expenditure per capita at purchasing power parity of $601. In comparison, the average spending on drugs in OECD countries is 16.1% of total health expenditure, with purchases averaging $554.

The prevalent business models in the franchising healthcare sector often offer various types of healthcare services: from more “traditional” ones within multispecialty centres to more innovative ones, through telemedicine services. The offer is provided in different integrated and complementary ways:

Station: a dedicated telemedicine service station that can be installed in companies, pharmacies, and various other settings with different configurations.

Point Medical Care, dedicated to second-level healthcare services.

Apps for accessing medical services remotely, also through. According to GlobeNewswire’s study on “Global Smart Healthcare,” smart technologies applied to the healthcare sector already recorded a market of $144 billion in 2019, and research predicts a potential annual growth of 16.2% until 2027.

Success Story of Healthcare Franchising.

Let’s fly across the ocean to discover BrightStar franchising, specialized in medical and non-medical care services for the elderly. The founder, Shelly Sun, became interested in the sector when she sought quality facilities for the care and assistance of her grandmother, Pat, without finding one that offered 24/7 services, providing both medical and care and companionship services. Hence the decision to found the first BrightStar Care center in Gurnee, Illinois. After validating the business model and opening two other proprietary centers, Sun launched her franchising network in 2006.

Today, BrightStar is an international reality: in 2018, it was present in 329 locations across the United States and Canada, also offering home services when necessary. Since its inception, BrightStar’s strength has been differentiating its offering.

In 2019, BrightStar Care received recognition from the Global Franchise Award as the best franchise in the nursing and healthcare sector, recording almost $2 million in revenue per center.

A Sector on the Rise.

The first factor playing a decisive role in the success of healthcare is the progressive and unstoppable aging of the population. In the coming years, more than ever, healthcare and digital evolution will go hand in hand. This is demonstrated, for example, by the fact that in 2018, investments in digital healthcare exceeded $18 billion, marking sector growth of over 50% compared to 2017, with particular attention to digital therapy, artificial intelligence, and robotics startups. This trend will likely be further accelerated by the explosion of the pandemic, which has almost forced doctors and patients to rely even more on telemedicine.

DO YOU WANT TO CREATE A FORMAT FROM SCRATCH? THEN FILL OUT THIS TEST.

WANT TO SCALE YOUR BUSINESS? THEN FILL OUT THIS TEST.

CONTACT US

If you want to know more about how to create your own format from scratch or develop your franchise network, book a free consultation.

Telephone exchange​

Head office Italy

Via Copernico 38, 20125 Milano (MI)

Legal & Operational Headquarters

Via del Baluardo 19, 64100 Teramo (TE)