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In this article

Pros and cons of commercialisation of the healthcare industry

SNATIKA
Published in : Health and Social Care . 11 Min Read . 1 year ago

Introduction

There are only a handful of industries where their services are considered critical to the survival of the country, society, or civilization. Some of these industries are education, defence, and health care. In these industries, privatisation or commercialisation can have both positive and negative impacts. While the positive impacts can boost a country's growth, the negative ones can be catastrophic for the nation. Due to the nature of the work involved, it is safe to say that these industries must be free from human evil like greed or corruption. However, we can see well-established and thriving privatised systems even in the above-mentioned industries in recent times.


The world is increasingly becoming more commercialised. Every industry seems to be commercialised. When we consider the nature of the above-mentioned industries, their workforce or employees must exhibit the virtues of selfless service. Especially in the healthcare industry, which saves lives, serves those who are suffering, and treats critical medical conditions must be adapting to change cautiously. In this article, we will discuss the advantages and disadvantages of the commercialization of the healthcare industry.

The advantages of the commercialisation of the healthcare industry

1. Better infrastructure

Infrastructure is a prominent need in all medical facilities. Hospitals are sought out for some of the most pressing needs or medical conditions. Some dire situations like accidents, dysfunction of critical internal organs, and injuries, need immediate medical assistance. In most cases, this assistance requires that the facility has modern technological solutions available. The critical facilities like the lab, oxygen supply, surgery room, machinery, and power backup are all critical components of a facility. The lack of any of them can result in the death of the patient. Buying this advanced equipment and building the required infrastructure needs an aggressive management style by the facility.


A government-controlled system is too slow to adapt to the technological revolution. Due to the levels of bureaucracies and decision-making processes involved, governmental facilities are painfully slow to adapt and upgrade to modern technology that could save lives. Moreover, in developing countries or poor countries, corruption is rampant and the funds raised for critical medical services are swallowed by corrupt officials in the system. According to a survey, every year, over $500 billion of public spending is lost to corruption globally (Source: Anti-corruption Resource Centre). All these can make government-controlled facilities relatively incompetent according to global standards.


Privatisation, on the other hand, offers a great alternative to the economic factors involved, these facilities invest heavily in modern technological solutions like better labs, a range of surgeries performed, and the quality of medical services. As a result, patients find these facilities to be a one-stop where they can easily address all their medical needs. As these facilities have everything inbuilt, they don't have to move around for availing of different tests and services. These hospitals will have essential time, medication facilities, and consultancy facilities for everyone who comes in.

2. Hygiene will become a priority

Hygiene is the absolute standard for any hospital. The presence of germs can obliterate the standard of medical care. If the environment is not hygienic, the quality of medical services falters. As a medical facility receives hundreds of patients and visitors every day, the germs of pathogens in the facility get exposed. This can increase the levels of medical risk. For example, during the COVID-19 outbreak, thousands of healthcare staff caught the virus through their patients and a lack of PPE kits (Source: Kartikeyan, Pranav, Vijay, NCBI). In such a situation, hygiene makes a world of difference between a healthcare facility and a disease hotspot.


Government-controlled healthcare facilities, especially in poor and developing countries have long neglected the most important quality standards set by the medical profession which is the hygiene factor (Source: P. Shears, NCBI). Other critical services like ambulance service which can save lives in transit are also neglected in many facilities. A lack of funding can also be a factor in this.

3. Medical logistics system gets a boost

Privatisation of the healthcare industry will greatly influence its operational structure. In the age of globalisation, logistics play a vital role in the quality of the healthcare system. Healthcare facilities need a well-functioning logistics system for operational success. Critical and perishable medical goods like medicines, tablets, syrups, and equipment are all some of the foundational supplies for medical facilities. Moreover, patients who need immediate critical medical care need the highest quality of ambulance service and coordination between the hospital and the ambulance to give the highest quality critical care for the patient while in transit.


According to the National Crime Records Bureau, nearly 24,012 people die each day due to a delay in getting medical assistance (Source: The Hindu). The commercialization of the healthcare system can give the industry the boost it needs in high-quality logistics. As private healthcare facilities operate based on profits, they give importance to the well functioning of their critical care system. This includes patients who are in emergency need of healthcare to be directly brought towards the medical facility. This makes competition fierce and private facilities innovate and attract customers through their competent logistics.

4. Supplies and storage

In government-run healthcare systems, patients will need to go to other facilities to buy prescription drugs which makes it time-consuming as well as unproductive in emergency cases. For example, during the COVID-19 pandemic, oxygen cylinders were in short supply (Source: WHO). As a result, many patients were forced to buy oxygen cylinders from outside the hospitals where it cost them a fortune (Source: Business Insider). This resulted in the unethical selling of oxygen cylinders outside the market.


Not only that but other critical vaccines and prescription drugs were sold on the black market to gain extraordinary profit margins at the expense of patients' lives. The pandemic toppled the structure of the healthcare system, but it still showed the importance of critical prescription drugs and medical supplies stored within the healthcare facility itself. Privatisation of the healthcare system can make it competitive with state-of-the-art warehouses and storage rooms.

5. Better utilisation of resources

One problem with the government-run healthcare system is that they can make quicker decisions in their management system but they cannot. As was mentioned above, due to layers and layers of bureaucracy, the system is painfully slow and any decision to change the system within itself must pass through these layers. Hence, the utilisation of critical resources needs to be decided by bureaucrats outside the facilities. This makes the government systems incompatible with the quickly changing patient care needs, industry standards, innovations, and adaptability. A bureaucratic system hinders the critical decision-making process which is the foundational aspect of a well-functioning healthcare system,

6. Quality healthcare services

As mentioned earlier private medical facilities are driven by plans to gain massive profits. As a result, to attract the right customers or patients, advanced medical facilities will be made available on the premises. This makes the facility better than other government-run medical facilities and competent with global standards. As a result, the surrounding population gets global standard healthcare facilities.

7. Cost-effectiveness if there is competition

Today's private healthcare system is defined by the high cost. However, if there is competition between two hospital chains in the same locality, it can benefit the patients. To attract patients to their facilities, private healthcare facilities reduce their prices and increase their quality. As a result, customers get to say the final words in choosing healthcare facilities that offer and cater to their needs. This can make society healthier and stronger while also boosting the economy and the overall health of the country.

8. Privatisation might reduce corruption

One thing that is rampant in the government healthcare system is corruption. As mentioned earlier the bureaucracy that is layered above the healthcare system makes it harder for patients to stand against corruption. It is hard for them to take it to the notice of higher authorities. This is why only bribes can get you the right treatment in countries that are haunted by corruption. However, in some cases, the commercialised healthcare system makes corruption difficult to survive. As the facility is run by entrepreneurs the control over the hospital staff will be tighter and accountability will be transparent to the management (Source: Tina Søreide, Research Gate). This might be beneficial in avoiding corruption. If a staff member asks for a bribe, it is easier for patients to report it to the authorities.

The disadvantages of commercialization of the healthcare industry

1. The involvement of economic benefits matter

The commercialised or privatised hospital makes profits from the treatment of patients admitted to it. Here, profits are a critical element which determines the survival of the facility. The economic gain drives the system. It can be counterproductive and raise the chances for misuse of the facility and power. There are countless examples where hospitals have used patients to make more money even after their death (Source: Times of India).


Such incidents rob the medical field of its dignity and philosophy. When making profits becomes the main element of a profession it can become increasingly corrupt from top to down as opposed to state-run facilities. When profits are the sole aim, these facilities try to treat only those who can afford their margins. This mentality can deprive healthcare of those who cannot afford it.

2. High costs can create a divide

As was mentioned earlier if there is competition in the surrounding locality, commercialised healthcare systems will provide their services at a reduced cost. However, the tables turn when there is no competition. If a commercialised healthcare facility is the sole operator of quality healthcare services within a locality, then the prices will be raised. This results in a divide between poor and rich patients. Only the rich will be able to get services from the facility.

3. Bias against the poor will defeat the purpose of healthcare

Bias is an evil everywhere in the world. For example, according to a survey by the University of Michigan Medical School, 21% percent reported experiencing some type of discrimination during a health care encounter. Bias or partiality against the poor in the medical facilities that are run for profit is rampant and unethical. The poor who cannot afford advanced medical services find it hard to pay medical fees that get heaped up over time. This puts hospitals on the defensive where poor patients are treated as second-class patients. As a result, bias or partiality against poor patients can get the best out of a commercialised healthcare system.

Solutions for minimising these disadvantages

While taking into account these advantages and disadvantages, there exist several solutions that can avoid and minimise these disadvantages. Here are some solutions.

1. Strict government regulations

The first solution is the proper regulation of commercialised healthcare facilities. Governments must be able to regulate the costs in all commercialised healthcare facilities. There also must be a national healthcare scheme that could help individuals to avail advanced medical services from these commercialised facilities regardless of their financial status.

2. Morals and ethics in Healthcare Education

The lack of morals and ethics in the healthcare profession will only result in greed, bias, and corruption. This puts all its practitioners in a mostly bankrupt state because it only focuses on making profits. Such a system misses the whole point of the healthcare system which is to serve those who are suffering while also making some profits. Starting the profession with a service mindset, higher morals, and ethics can change this mindset.

3. Cultivating a service mindset

This service mindset must be cultivated even from the beginning of medical education. Businesses must adopt moral and ethical standards to treat patients regardless of their financial state. If the healthcare system is perceived as an industry that serves rich and poor patients without bias, then the industry will be living up to its expectations.

Conclusion

We have seen the commercialization of the healthcare system has its own advantages and disadvantages. Some better advantages are better and high-quality infrastructure, highly trained and experienced staff, better management, a hygienic environment, and better logistics solutions. Along with that, a commercialised healthcare facility offers quality solutions and cost-effectiveness if there is competition.


However, just like a coin has two sides, a private healthcare system also has its own disadvantages. While it avoids corruption, it is also described as cultivating bias against poor patients. This bias can make it harder for the underprivileged to get quality medical services. The sole purpose of making profits can hinder the purpose of the healthcare industry which is to provide medical services.


If the government makes the right policies and controls these commercialised healthcare industries and keeps its costs in check, then these disadvantages can be removed from the system. Moreover, cultivating a service mindset with moral and ethical teaching can have a positive impact on the system. In this way, the commercialization of healthcare facilities will be more of a boon for the population of a country.


And finally, if you are a healthcare manager who needs a prestigious UK Masters degree in Healthcare, SNATIKA is the right place for you. SNATIKA provides a prestigious UK Masters degree program in Health and Social Care Management to senior professionals like you. If you have managerial experience, then apply for our program right away and complete your education within 12 months completely online. Download the brochure now!


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