There is no doubt that private hospitals are becoming an increasingly popular option for those in search of quality and personalized healthcare.
But who is the target market for these hospitals? And what are the factors that influence people’s decisions about where to seek treatment?
In this article, we will discuss four of the most important segments of the target market for private hospitals: affluent patients, corporate clients, well-insured patients, and medical tourists.
Each market segment has its own unique needs and preferences when it comes to healthcare. It is important for private hospitals to understand these needs and cater to them in order to attract more patients and grow their business.
Who is the Target Market for Private Hospitals?
As we saw above, in this article we will look at the 4 largest segments of the target market for private hospitals. These are:
- Affluent patients
- Corporate clients
- Well-insured patients
- Medical tourists
Let’s now understand the needs, requirements and preferences of each of these market segments and what they look for when selecting a private hospital to receive their medical care.
Affluent patients
Private hospitals are expensive and so the first and most obvious segment of the target market for private hospitals are people who are very well off.
These are people who can afford to pay for the high-quality, personalized care that private hospitals offer. They tend to be very discerning when it comes to choosing a hospital and will often research their options carefully before making a decision.
Affluent patients look for private hospitals that offer the best possible care, as they are willing to pay a premium for this. They tend to prefer hospitals that are located in major cities and have a good reputation.
They will often have a long-standing relationship with a hospital and so will get priority when they need to go to the hospital in the event of an emergency. For instance, they may go regularly to a hospital for therapy – like physical therapy.
Another important factor for affluent patients is privacy; they often prefer to receive treatment in a hospital that can offer them a high degree of privacy and confidentiality.
Corporate clients
Top-quality healthcare at private hospitals is often a perk that companies offer to attract the best and the brightest to come and work for them. Many companies have corporate contracts with private hospitals, which allows their employees to receive treatment at a discounted rate.
Private hospitals are often seen as providing a higher standard of care than public hospitals, so this is an attractive benefit for employees. It is also beneficial for companies because they know that their employees will be able to receive the best possible care and treatment, which will help them stay healthy and productive with minimal time away from work.
When choosing a private hospital, corporate clients typically look for a few key things. First, they make sure that the hospital can provide the quality of care that their employees need. Then they also ensure that the hospital is conveniently located and easy to get to and from their office or workplace.
Well-insured patients
Having excellent insurance that covers all costs at a private hospital is often the same as being affluent. Many people who have great insurance are able to receive the same standard of care as those who can afford to pay out of pocket.
Just like corporate clients, insurance companies have contracts with specific private hospitals so that their customers can receive a discounted rate. This is often an attractive option for people who have insurance but may not be able to afford the full cost of care at a private hospital.
When choosing a hospital, well-insured patients typically look for the same things as other patients: quality of care, location, and reputation. However, they are also influenced (some would say, restricted) by which hospitals their insurance company has agreements with.
Medical tourists
Medical tourism has been a growing industry in recent years. Medical tourism is when people travel to another country to receive medical care and treatment.
Interestingly, medical tourism goes in both directions. It includes people from wealthy countries, where medical care is expensive, going to other countries where they can get top-notch medical care at a much lower cost.
And it includes wealthy people from countries where the medical care may not be the best, going to wealthy countries where they can receive high-quality (but expensive) medical care at a private hospital.
Medical tourists are an excellent target market for private hospitals because they are often willing to pay well for the best possible care. Money is never a restriction with medical tourists.
Summary
The target market for private hospitals can be mainly divided into the following four segments: affluent patients, corporate clients, well-insured patients, and medical tourists.
Affluent patients and well-insured patients are similar in the sense that they have the financial means to cover the expenses of a private hospital. The main difference is that affluent patients usually pay out of pocket while well-insured patients have their costs covered by their insurance company.
Another difference is that affluent patients often go to the private hospital of their choice while patients with insurance are often limited to the hospitals that their insurance company has agreements with.
Corporate clients often make deals with private hospitals for the benefit of their employees. The objective is to attract the best employees and then keep them healthy and productive by giving them access to top-quality healthcare at private hospitals.
Finally, medical tourists are an excellent target market for private hospitals because the price of healthcare is generally not a concern for them. They are usually independently wealthy in their own country or they are going from a wealthy country to another where medical costs are low but the care is excellent.
