Built to Suit construction
An insight into the growing acceptance of the asset light model in Indian healthcare construction.
The year 2020 threw a wrench in our perceptions of health and well being in particular. We are now in the second year of a pandemic that wreaked havoc across the world. As a result, healthcare today is prioritized in our lives like never before. There is a larger awareness of the benefits of healthy living and preventive care.
Many new technological innovations are happening in the industry, the increasing number of financial challenges are grappling the industry with an equal speed. In a conducive but challenging space of Indian healthcare delivery, plagued by lower operating margins and rising operational costs, asset-heavy, vertically integrated models tie up significant capital and frequently prove less flexible in a fast-changing environment. Subsequently, increasing number of healthcare providers are adopting cost trim alternatives like asset light model, also called as built to suit model. This "asset-light" strategy, which has been adopted with great success by hotel brands in India is also leading the healthcare providers to consider using the infrastructure provided by smaller hospitals in cities, trusts, or real estate owners, saving them the trouble of starting from scratch and shortening the payback period.
This report aims to provide an insight into the growing acceptance of the asset light model in Indian healthcare construction and how it is beneficial to each party involved.