The healthcare sector faces multiple entry barriers, from regulations to market demands. Despite the general requirement, the public still considers the healthcare industry the least trusted segment. Various medical errors, customer-unfriendly products, and ineffective treatments form the basis for contrasting opinions against the medical sector.
World Health Organization states,
“Creation of quality health products and services to scale-up efficiency in medical support demands a comprehensive understanding of barriers.”
If healthcare ventures aim to build a robust business strategy, keeping a note of these roadblocks is mandatory. It helps organizations gauge the market value of their products, analyze the kind of backlash they can receive, and make their investments accordingly.
Here are some common entry barriers businesses face when developing a healthcare marketing strategy.
Contents hide5 Solutions to Overpower Healthcare Market Barriers
Long Approval Time And Changing Regulatory Framework
Governments worldwide must comply with an organized accreditation mechanism to deliver holistic healthcare. Based on safety, labeling, and efficacy factors, each drug can take 12 to 15 years before its launch through Food and Drug Administration process. These regulatory frameworks keep shifting over time depending on the technical standards, environmental impact, and services offered.
Besides, with the involvement of nontraditional players like Amazon in the healthcare industry, compliance standards are constantly changing to drive the future of health.
Since the healthcare sector simultaneously involves providers, patients, payors, and policymakers, any regulatory revision creates a snowballing effect.
Multiple Stakeholders in Purchase Decisions
Unlike other industries, the healthcare sector comprises multiple stakeholders, including patients, professionals, pharmaceutical firms, insurance companies, doctors, and policymakers. Insurance firms are responsible for covering the healthcare needs of the patients. These organizations help the pharma firms with investments to develop new medicines. Physicians describe these novel drugs to patients in need. At the same time, policymakers devise measures and frameworks for the effective usage of drugs.
With the involvement of multiple individuals in a purchasing decision, the average duration not only elongates but also turns complicated.
The Hegemony of Existing Healthcare Businesses
The Healthcare sector is rife with existing providers monopolizing the distribution of healthcare supplies. The long-term presence of companies like Roche carries the patients’ enormous trust, enabling them to capture their audience’s attention easily. From medical insurance to hospitals, monopoly is one of the most pertinent barriers to consider before digging into the healthcare market.
The more time a healthcare organization spends in the market, the higher power it carries to enhance its visibility. On top of this, the dominant players can also create enormous intellectual property disputes causing a delay in the approval and causing decline after patent expiry.
Compliance with Healthcare Technology Assessments
For businesses devising innovative devices, healthcare technology assessments is an additional mandate to comply with, amongst other measures. In this method, the experts evaluate the overall effect of healthcare technology on economic, social, and ethical aspects of society.
The main aim of this assessment is to improve the inclusion of cost-effective technologies that enhance the health of the medical sector. With the expected rise of medical healthcare to USD 410 billion by 2025, evaluators are now developing stringent measures to check the healthcare tech against them.
But tough accreditation measures are not the only roadblocks. The most critical barrier faced in the overall analysis is the absence of reliable data to verify the efficiency of medical tools. Privacy concerns are also a barrier for healthcare companies obstructing medical technology adoption and proliferation.
Solutions to Overpower Healthcare Market Barriers
More than 75% of healthcare startups fail to see success due to the inability to overcome barriers. Merely focusing on the monetary aspect of a medical business doesn’t prove effective in streamlining sales and increasing its revenue.
Here are the key strategies to easily supersede the market barriers!
Create An Elaborate Value Proposition
If you’re describing your medical service as ‘effective’ and ‘reliable,’ you must also answer the question ‘how.’ With multiple dominant healthcare companies in the market, banking on the mere show of efficiency of products isn’t enough today.
According to Deloitte, customers focus more on their health and consumer products to ensure longevity. As a result, the emphasis on communicating the specific values of healthcare products and services is much higher in the post-pandemic era.
Develop An Evidence-generation Methodology
Whether it’s the time required for drug approval or the data for gaining insights into consumer preferences, an evidence-based strategy perceives the long-term impact of an action. This unique method is crucial for the healthcare sector as it requires businesses to create a model based on forecasts, data analytics, market research, current expenses, potential returns, and risks.
Evidence-based healthcare tactics involve integrating different avenues within the business to the specific action. Doing this ensures the inclusion of social, economic, regulatory, and ethical cognizance related to the product at hand.
Leverage Connections And Customer Base For Feedback
Reviews from industry experts and customers are pivotal to the success of any healthcare product or service. Because of the diverse needs in the market, it’s impossible to develop a one-size-fits-all product that caters to all. However, with the help of consumer feedback, businesses can plug in loopholes that can cause significant delays.
To Be Precise
The healthcare industry is a consumer-centric segment that requires constant innovation. However, catering to all the requirements of the consumers becomes a challenge in the middle of fierce competition. On top of this, modifications in policies and regulatory frameworks pose additional roadblocks for healthcare ventures to succeed.
That said, companies can still pave the way for success with strategic model creation involving costs, regulations, implications, and alternatives. All in all, healthcare ventures need in-depth research along with perseverance in their endeavors every step of the way to excel. Not only it saves them from making costly mistakes, but it also ensures the management of incoming hurdles with ease.
She is currently working at InfoCleanse as a Marketing Team Lead. She has hands-on experience in B2B marketing and loves to write blogs and tips, read b2b articles, create business strategies, and travel.