Adopting technology and shifting online will enable companies to survive
The healthcare sector is expected to experience a short-term decline in revenues across all major sectors in 2020
Like other economies, India has been rendered vulnerable by the COVID-19 crisis. However, it’s not that everyone and everything is capsizing. Some sectors in India have made gains and exciting opportunities are emerging, while careful risk mitigation strategies are helping others chart a new course for the future, points out Frost & Sullivan.
Based on dynamic, real-time updates, Frost & Sullivan’s research indicates that COVID-19 could play out in two ways. The first scenario of a Severe Pandemic will be marked by downturns in consumer demand, industrial production, and GDP growth. The outbreak will be mostly contained soon, with the economy showing signs of industry and economic rebound by Q2 FY’20-21and showing full recovery by Q1 FY’21-22, the report points out.
The healthcare sector is expected to experience a short-term decline in revenues across all major sectors in 2020. This will be a result of reduced consumption caused by delays in elective surgery and lower purchases of medicines due to fewer prescriptions. During the pandemic, emergency visits are expected to drop 58%, outpatient and ambulatory care to drop 81%, in-patient admissions to drop 80%, and dental and cosmetics to drop 95%, points out Frost & Sullivan.
Shortages in medical devices like ventilators and test kits and operational issues, including the disruption of clinical trials and inadequate virtual care, will further exacerbate challenges. On the positive side, COVID-19 is poised to trigger double-digit growth in telemedicine and virtual care solutions, highlight the need for higher local production of essential drugs, and underpin the growing importance of online pharmacies.
Externally, strengthening brand equity, and shifting sales channels online will be strategically important. Internally, adopting technologies that support workplace and operational continuity will enable companies to hit the ground running, following the COVID-19 crisis.