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20154948 Healthcare and Hospital Industr1

20154948 Healthcare and Hospital Industr1

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Published by: SE Tan on Aug 18, 2011
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02/25/2013

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Sections

  • HEALTHCARE AND HOSPITAL INDUSTRY
  • The Hospital Industry
  • THE SERVICE MARKETING TRIANGLE:
  • Classification of Hospitals
  • 7 Ps of marketing for hospitals
  • Marketing hospitals
  • SOME PLAYERS
  • Opportunities
  • The Future

HEALTHCARE AND HOSPITAL INDUSTRY

Healthcare industry is a wide and intensive form of services which are related to well being of human beings. Health care is the social sector and it is provided at State level with the help of Central Government. Health care industry covers hospitals, health insurances, medical software, health equipments and pharmacy in it.

Right from the time of Ramayana and Mahabharata, health care was there but with time, Health care sector has changed substantially. With

improvement in Medical Science and technology it has gone through considerable change and improved a lot.

The major inputs of health care industries are as listed below: I. II III. Hospitals Medical insurance Medical software

IV. Health equipments

Health care service is the combination of tangible and intangible aspect with the intangible aspect dominating the intangible aspect. In fact it can be said to be completely intangible, in that, the services (consultancy) offered by the doctor are completely intangible. The tangible things could include the bed, the décor, etc. Efforts made by hospitals to tangiblize the service

offering would be discussed in details in the unique characteristics part of the report.

Different types of health care services available in India

Hospitals Pathology Clinics Blood Banks Meditation Centres Emergency services like Ambulances, etc. Online Medical Services Telemedicine Naturopathy Yoga Centres Fitness Centres Laughter Clubs Health Spas

In

the Constitution

of India, health is a state subject. Central govt’s

intervention to assist the state govt is needed in the areas of control and eradication of major communicable & non- communicable diseases, policy formulation, international health, medical & para-medical education along with regulatory measures, drug control and prevention of food adulteration, besides activities concerning the containment of population growth including safe motherhood, child survival and immunization Program. The plan outlay for central sector health programme in the Annual Plans 1997-98 is Rs.920.20 crore including a foreign aid component of Rs.400 Crore. A major portion of outlay is for the control and eradication of diseases like malaria, , blindness being implemented under Centrally sponsored schemes. Another major component of the central sector health programme is purely Central schemes through which financial assistance is given to institutions engaged in various health related activities. These institutions are

responsible for contribution in the field of control of communicable & noncommunicable diseases, medical education, training, research and parent -care. In our project our focus has been the hospital sector which is the major component of the healthcare industry.

The Hospital Industry

Some Facts

India’s healthcare industry is currently worth Rs 73,000 crore which is roughly 4 percent of the GDP. The industry is expected to grow at the rate of 13 percent for the next six years which amounts to an addition of Rs 9,000 crores each year.

The national average of proportion of households in the middle and higher middle income group has increased from 14% in 1990 to 20 % in 1999.

The population to bed ratio in India is 1 bed per 1000, in relation to the WHO norm of 1 bed per 300.

• •

In India, there exists space for 75000 to 100000 hospital beds. Private insurance will drive the healthcare revenues. Considering the rising middle and higher middle income group we get a conservative estimate of 200 million insurable lives

Over the last five years, there has been an attitudinal change amongst a section of Indians who are spending more on healthcare.

Corporate hospitals mushroomed in the late eighties. The boom remained shortlived and out of the 22 listed hospital scrips, most are being trading below par. An increasingly fragmented market, lack of statistics, capital intensive operations and a long gestation period are all wise reasons to shy

Good corporate hospitals are still too few to amount to a critical mass. the hospital hardware and the software companies that have come together to create the boom. thus opening up the sector. The focus has been on epidemiological profile of the medical care and not on comprehensive healthcare. the healthcare sector was recognized as an industry. contributed to greater attention being paid to health. Hence it became possible to get long term funding from the Financial Institutions. With the rise in the . little has been done to update or amend the policy even as the country changes and the new health problems arise from ecological degradation. now.away from investing in the healthcare industry. higher levels of income and increasing awareness through deep penetration of media channels. The government also reduced the import duty on medical equipment’s and technology. Many of the trust hospitals suffer from poor management. there are the insurance companies. However. Government and trust hospitals dominate the scene. Socio-Economic Changes: The rise of literacy rate . Since the National Health Policy (the policy’s main objective was ‘Health For All’ by the Year 2000) was approved in 1983. Factors Attracting Corporates In the Healthcare Sector Recognition as an industry: In the mid 80’s. Corporate hospitals failed a decade ago because they emerged in isolation and weren’t part of a larger phenomenon.

GIC takes upto 6 months to process a claim and reimburses customers after they have paid for treatment out of their own pockets. they develop a good image in the markets which further improves the brand image of products from their other businesses. Currently. The opening up of the insurance sector to private players is expected to give a shot in the arms of the healthcare industry. has never aggressively marketed health insurance. 60% of the total health expenditure comes from self paid category as against governments contribution of 25-30 %. This will give a great advantage to private players like Cigna which is planning to launch Smart Cards that can be used in hospitals. travel insurance. By lending their name to the hospital. Brand Development: Many family run business houses. etc. . in India only 2 million people ( 0. Moreover. A majority of private hospitals are expensive for a normal middle class family. it became necessary for regular health check-ups and increase in health expenses for the bread-earner of the family. Health Insurance will make healthcare affordable to a large number of people. Opening Of The Insurance Sector: In India. whereas in developed nations like USA about 75 % of the total population are covered under some insurance scheme.2 % of total population of 1 billion). Extension To Related Business: Some pharmaceutical companies like Wockhardt and Max India. approx. General Insurance Company.system of nuclear families. have ventured into this sector as it is a direct extension to their line of business. have set-up charity hospitals. patient guidance facilities. are covered under Mediclaim.

Medical Software and Hospitals will see the biggest boom. . The insurers will use PPOs. Financiers and Insurance Agencies are to benefit from this boom.The Consultants. Medical Equipments. that will grow into HMOs. to assume insurance risks on clients behalf.

which will satisfy the customer’s (patient’s) expectations (of getting cured). as he is the one who comes in direct contact with the patient. A satisfied patient is a very important source of word of mouth promotion for the organization. the inseparable part of the hospital is the provider. .  Customer: The patient who seeks to get cured is the customer for the hospital as he is the one who avails the service and pays for it. The reputation of the hospital is directly in the hands of the doctor.  Provider: Doctor. the hospital is the company that dreams up an idea of service offering (treatment).THE SERVICE MARKETING TRIANGLE: HOSPITAL DOCTOR PATIENT  Company: Here.

Classification of Hospitals HOSPITALS Objective Ownership TeachingcumResearch Path Government Size Allopath District Semi-Govt General Voluntary Agencies Ayurved Taluk Homeo Special Primary Health Centre Unani Private Charitable Others Teaching .

An individual would only be able to experience the same. Since the offering cannot be seen or felt there would be no stock and hence one would not be able to jeep a track of the sales etc.-Unique Characteristics: - The service industry has the following characteristics. . 1) Intangibility: Intangibility means that a customer would have to visualize the service offering. This characteristic also makes it different to measure the benefits and utilities of the product.

It would also give the customer a certain level of confidence regarding the services provided in the hospital. hospitals fall in the bracket of highly intangible where the service has credence qualities. i) The services of a doctor i.e. These can only be experienced by the customer. the consulatation provided by the doctor . There is no ownership over the doctor or the services provided by him .In the product service continuum. One can only visulalise the same. . his diagnosis etc cannot be touched felt or seen. The remedial measures to overcome intangibility are:- a) The marketer should visualize the product/service for the patient. b) Association: The association of a hospital with any well known personality would help as a good image building exercise . ii) They can also not measure the benefits.In case of hospitals any visual of the hospital displaying the well maintained interiors. the hi-tech equipments used for treatment would help to tangibilise the product.

They are owned by these corporate families. ( Eg) Apollo Hospital.Hospitals like the Tata Memorial Hospital or the Hinduja hospital are associated with Corporate Houses. c)Physical Representation :- Intangibility could also be overcome in case of hospital through physical Representation in the form of :1)Color. 3)Symbols – The Red Cross is the common logo with which people indentify hospitals.e how well maintained it is d)Documentation –There are a numbers of hospitals which have received ISO 9000 certificates. 4)Buildings – In case of hospitals the external appearance of the building or the maintenance i.The Red Cross signifies the Hospital. (eg 2)The Dinanath Mangeshkar Hospital. Since it is owned by Lata Mangeshkar the customer is sure to receive quality services.The white uniforms of the Doctors And Nurses in enemy hospitals. 2)Uniforms. Also logos of hospitals like Wockhardt. Hence a customer is sure about the services provided in these hospitals. .For (eg 1).

(Eg). A situation may also arise when the doctor may be unable to attend to some of his patients due to a huge rush. In such a case the hospital too may lose all its patients for that day.Same would be the situation faced by the hospitals. He loses all his patients for that day.Rajgovind Hospital in CBD appoints interns of Medical College for night duty on a stipend . So if the service is not consumed immediately then it loses its value. -Solution to the problem of perishability a) In such a situation the doctor can appoint an assistant who could cater to the excess patients or he could have students training under him who during their course of training could also help him with the excess patients.2) Perishability A services cannot be stored . In such a case again the doctor could lose out on all his patients. For Eg – If a doctor does not reach his dispensary on time or has his clinic locked for that particular day.

b) Peak time Essential Services In a rush hour situation when there are too many customers to attend to only essential services should be catered to. one from a municipal hospital and another from a reputed hospital may treat a person for the same problem. skills. . In such a case doctors/hospitals are the internal customers and the patients are the external customers. attitude etc For Eg :. But their quality might differ.2 Doctors. For (eg 1) In hospitals during the late night when accident reportings are high all hands are required at the trauma centers (eg 2) Part time volunteers for national Emergencies. (ie) Irrespective of the fact that the job carried out by them is the same the service quality may differ because they may be from different backgrounds have different aptitude. 3) Variability It means that the quality of service provided to different people may not be the same.

(Eg) A patient suffering from Arthritis may be required to lose weight for further treatment. 1)The doctors could be given training and could be updated with all the latest happenings in the medical field in regular intervals. They could be given a chance to perform the small parts of an operation in order to gain experience.Since a transaction is always two way communication. background. a customers willingness. attitude etc may also effect the transaction For ( Eg) . Solutions 1)The internal customers or the fresh recruiters could be given training. 1)Training of External customers ( Eg) Diabetic patients are trained to inject insulin on their own . For (Eg ) AMA prescribes for its member doctors 6 weeks training every year and 6 months training every 6 years. But the patient may not have the drive/willingness to lose weight .A patient may want to avail of a doctors services but may not be able to afford the services.

( Eg ) In Case of health care services. 4)Inseparability For any service to take place it is necessary that both the service provider and the customer be present in the location at the same time ( eg) An operation cannot be conducted without the doctors presence. These kind of training programmes provided to the external customer helps to increase the quality of transaction. a gym instructor may teach his members to use the gym equipments on their own. Solutions This can be overcome to a certain extent through the following:- 1)Training of internal customer- . ( Eg ) Auto Diagnostic equipments are used in hospital. As a result a number of patients due to geographical distances lose out on the opportunity to get themselves treated from the very best surgeons and doctors.

Only recently have instructions for operation through video conferencing been initated but mostly video conferencing has been used in the medical world as a pedagogical tool. 3) Video Conferencing Business Conferences. Consultancy and the Medical world . For Eg A surgeon during an operation is surrounded by interns watching the operation. They could also carry out some small parts of the operation.(eg) A unique and rare brain tumour operation can be broadcast live all over the world to subscribed medical colleges. . 2)Innovational ServicePsychiatrists have innovated group therapy where they call in 10+ patients together to an oval conference table and encourage them to talk about themselves and their ailments.Here one experienced person can provide training to the amateurs.

blood-banks. the dresses and clothes are also required to be made bacteria free. To get the best result from OT. catering. In addition. . The patients are required to wear disinfected linen which should be made available. in a true sense determine the quality of services made available by medical and para-medical personnel. the quality of services cannot be improved. The service product of the hospitals normally have the following features: o Quality Level: When we talk about marketing hospitals. we find sophisticated equipments and unless hospitals make the same services available the same. Of late. it is natural that we are very particular about managing our services in the right fashion. These services which include laboratory. The radiology department should have hi-tech facilities keeping in view the pressure of work.7 Ps of marketing for hospitals  Product: The service product is an offering of commercial intent having features of both intangible and tangible. Supportive services play an important role in improving the quality of medicare. They get a strong base for treatment since the diagnostic aspect determines a direction. Hospital industry is action oriented and there is a lot of interaction with the customers (patients). seeking to satisfy the new wants and demands of the consumer. radiology and laundry. it is natural that equipments are properly sterlised.

laundry. Hospitals have different wards . for the customers (patients)who are willing to pay extra. at once. etc. o Packaging: It is the bundling of many services into the core service. cardiology department. cafeterias. etc. say rupees 1 lakh for all procedures. Similarly other hospitals also offer package deals for health check-ups.General and Special. etc. and within the dental department it has dental surgery. Many hospitals provide additional services such as catering. tests.o Accessories: This is a very good way of segmenting customers. to differentiate themselves. For example if a person has to undergo a bypass surgery. yoga sessions. Certain hospitals provide services for the family members of the patients (when they are not from the same city) – accommodation and catering. root canal. o Product line: hospitals through their services offer many choices to the patients and cover a wide range of customer needs. and their services from others use a brand name. he can pay a lump sum amount during admission. etc. stay. o Brand name: The hospitals. For example: Apollo hospital has dental department. Eg: Apollo hospital offers a full health check-up to the patients. The intangibility factor of the service makes it all the more important for the hospitals to do so. .

This focuses on the instrumentality of almost all who are found involved in making services available to the ultimate users. that is the doctor may be a visiting doctor for different hospitals at different locations to beat the place factors. It can be unambiguously accepted that the medical personnel need a fair blending of two important properties i. A typical small village / town may be having small . place factor for the hospitals play a very crucial role. Unlike other service industries. The kind of services a hospital is rendering is also very important for determining the location of the hospital. which is geographically vast and where majority of the population lives in the rural areas. – they should be professionally sound and should have in-depth knowledge at psychology. which you can find all over other places. Now in this case the service provided. In a country like India.e. Tata memorial hospital specializes in cancer treatment and is located at a centre place unlike other normal hospitals. A particular doctor might be famous for his case handling records but he may not be made available for all the patients because of the place factor. distribution of Medicare services plays a crucial role. under hospital marketing all efforts should be for making available to the society the best possible medical aid. Place Under hospital marketing. In case of hospitals the location of hospital plays a very important role. Eg.

For that they will have to be dependent on the hospitals in the urban areas. .dispensaries but they will not have super speciality hospitals.

which has to be understood by the doctors and other staff. One of the major classifications of hospitals is – private and government. In Indian government hospitals except a few almost all the hospitals and their personnel hardly find the behavioural dimensions significant. supporting staff etc. People Under hospital marketing the marketing mix variable people includes all the different people involved in the service providing process (internal customers of the hospitals) which includes doctors. Under hospital marketing a right person for the right job has to be appointed and they should be adaptable and possess versatility. so the people factor is very important. The patients in the hospitals are already suffering from trauma. nurses. The people of the hospital should be constantly motivated to give the best of their effort. It is against this background that even if the users get the quality medical aid they are found dissatisfied with the rough and indecent behaviour of the doctors. Hospital is a place where small activity undertaken can be a matter of life and death. The earliest and the best way of having control on the quality of people will be by approving professionally sound doctors and other staff. In the government hospital the people factor has to be specially taken care of. .

A typical process involved in a medium sized hospital can be as follows. Apart from this flow there are other allied activities like record keeping administration at services etc which fall under the process factor. The experience of the patient depends on the final interplay of all these factors. Process Process generally forms the different tasks that are performed by the hospital. . These stages do not exist separately but are interlinked. The process factor is mainly dependent on the size of the hospital and kind of service it is offering. The most important elements are lines of communication within the setup.

Examples 1. logos. as the core benefit a customer seeks is proper diagnosis and cure of the problem. 2. a smart building infrastructure indicates that the hospital can take care of all the needs of the patient. . which helps. Physical evidence also helps in beating the intangibility factor. Physical evidence can be in the form of smart buildings. In recent days some major super speciality hospitals are using physical evidence for distinguishing itself as something unique. in developing in the minds of the people. the impression that it is the safest option among the different hospitals available to the people. For a local small time dispensary or hospital physical evidence may not be of much help. which can be easily identified. Fortis and Apollo hospitals have a unique logo. Physical evidence It does play an important role in health care services. mascots etc. Lilavati hospital has got a smart building.

In villages. hoardings and wall writings near the markets and recreation centers attract the attention of villagers. The use of celebrities is not as effective as that of a common man. The identification with the common man is easy and quick. This group has a large discretionary income. Unlike the urban area. appearance and nutrition conscious population. . in rural areas newspapers and magazines do not have the same impact in conveying messages. In case of health care products and services use for “common man” appeal is widely prevalent. budget and the sales promotion. An ordinary person thinks that if it works well for people like him. Since a few years the prime times in T. These discerning consumers are very careful in choosing health care services. Besides TV. use of different types of contraceptives. care for the girl child and so on. media type. it will also work equally well for him. The last decade has witnessed a health. These commercials use the common man approach for reference group appeal. This market consists of 180 million strong middle income group and a small income group. Promotion: Hospitals for promotion use either advertisement or PR or both after taking into consideration the target customers. are reserved for advertising social issues like family planning.V. other media of promotion are to be used innovatively.

Therefore.The health care field has become very competitive. The patients who come to a hospital generally have the old patients of that hospital as referrals. A person in need of a health care service does not know for sure where to search for relevant information. Word-of-mouth plays an important role during information acquisition stage of the customers as there are no objective performance measures to judge the various alternatives available to them. One factor that is likely to have a significant impact on the health care scene is the growth of hospital chains such as Apollo Hospitals. Artificial heart transplants and other complex operations although are few in number and generate a small portion of the total revenue. but they may operate from the urban area. they help in generating word-of- . Therefore. the images of the firms swill affect their competitive standing. The patients of upper middle and upper income group have a wide choice to make from a number of clinics and hospitals. Although around onefourth of our population stays in urban India.etc. In a competitive market place. three fourths of the total doctors have engaged themselves in this part. many hospitals have abandoned traditions and adopted marketing strategies to woo more and more patients to their clinics. Birla Health Centres . Many of these doctors visit the contiguous rural areas. He consults his family members. relations and friends first. Word-of-mouth plays a very important role in promotion of hospitals. satisfied past patients of a hospital can bring more number of patients to that hospital than a number of advertisements.

mouth which health care providers are actually interested. . Many of these companies are spending a lot in corporate advertising for Image building.

This argument however became favourable in the late nineties as corporate companies like Wockhardt and Max India started venturing into the hospital industry. In addition to the above a major factor that contributed to the acceptance of marketing in hospitals was an increase in the delivery of services. Even the TPAs started building tieups with corporate clients and there was already an abysmal utilisation of resources in the existing hospitals. apart from the ongoing mergers and acquisitions that were already taking place at that time. But the major argument at that time lay in understanding whether this professional orientation was really required for its viability.Marketing hospitals Marketing in Hospitals Marketing is unethical” was the frequent refrain in the eighties. profitability and sustainability. Ultimately. ‘Perception of patients’ was another important consideration for hospitals. marketing was . when very few hospitals realised that it was necessary to incorporate marketing as an integral function in the hospital operations. as they felt that the patients would take them as profit oriented organisation rather than service oriented organisation.

Besides the presence of eminent personalities creates a sense of confidence in the minds of people. working in the companies of these Trustees.accepted only by a few while the others discarded the concept. Some of them are listed below: • Many hospitals have eminent personalities from the industry in their Board of trustees. the hospitals follow various marketing and brand building exercises. In an era where hospitals are experiencing a major shift in their clientele. which further sends them to the hospital for check-ups and treatment. This indirectly leads to increase in. • Private hospitals can attract their shareholders by offering discounts. Any case of sickness found in the employees of these corporates refer them to the PPO’s . As hospitals spend millions of rupees in technology and infrastructure. In order. inflow of patients. that they attract patients and generate funds. For example. which further have understanding with corporates. to do the same. it becomes necessary. • Hospitals have long-term understanding with PPO’s (Preferred Provider Organization). Hospitals who accepted marketing also carried out their functioned by concentrating around corporate clients. Lately it has been felt that many Indian hospitals have a dilemma regarding the functions of marketing. they are worried more about the patients’ perception of hospitals and therefore the concept of brand restructuring and brand engineering is vital. . a special discount of 20 % on all preventive health checks is offered to all shareholders of Apollo Hospitals Limited.

reflect the technological and knowledge. • Hospitals can also promote medical colleges. • Hospitals hold seminars and conferences relating to specific diseases. Hinduja Hospital is known for its high-quality healthcare at reasonable rates. For example. . This makes the hospital well known amongst the doctors. for detailed discussion. This helps them to generate extra resources in form of fees.• The success rate of crucial operations and surgeries. using the same infrastructure. which becomes a natural advantage for the hospital.based edge of the hospital over the competitors. • Some hospitals by means of their past track record have created a niche market for themselves. whereas Lilavati Hospital is known for its five-star services. who could in future refer complicated cases to the hospital. Such successes are discussed in health magazines and newspapers. where they invite the doctors from all round the country.

The group is planning to invest Rs.15. The Apollo group is India’s first corporate hospital. . represents the changing face of healthcare in India contemporary and corporatised.000 employees across the country. Indian Hospitals Corporation Ltd. The recent merger between its 3 group companies. will help the group raise money at a better rate and by consolidating inventory. comprising of one of the largest networks of 26 hospitals.SOME PLAYERS The Apollo Group of Hospitals Driven by its line of being the “architect of healthcare” in India. 3.4 million treated patients. Nepal and Malaysia. Apollo claims to maintain the best of medical standards with a record of over 7. 10 clinics and over 10. Deccan hospitals Corporation Limited and Om Sindoori Hospitals Limited. in India. Apollo is one of Asia’s largest healthcare players. to bulid around 15 new hospitals. 2000 crore . it will save around 10% of the material cost. Sri Lanka. With 2600 beds. the Apollo Hospitals Group. the first to set-up hospital outside the country and the first to attract foreign investment. It has been the first private company to administer health insurance in the country and Indraprastha Apollo Hospital in Delhi is the fourth largest corporate hospital in the world.000 preventive health checks done..

which was an integral part of the hospital inception project. HIS contains all the information relating to appointment schedules of the doctors.000 cardiac surgeries.98. The hospital today boasts of an integrated HIS. education or telemedicine. which provides for end-toend integration of the various processes and functional areas within the hospital to make for a seamless workflow. Depending on the availability of the doctor. materials. Hence. whether it is day-to-day running of hospitals. finance. This information is then fed into the system and the updated information is available to the doctor in real-time. purchase and HRD. The workflow process starts with the patient seeking an appointment with the doctor. Indraprastha Apollo. And helping the company maintain a balance between the corporate culture and rigorous medical excellence is recognition of IT as intrinsic to every process. engineering. the need for an end-to-end integrated solution. . etc. throws light on the extent of the automation drive within the company.5 percent success rate in 45. The work processes of the hospital are primarily divided into two areas the patient (comprising of inpatient and out-patient) and the non-patient all the back-end departments like housekeeping. the patient is given the date and time of appointment. The management realised the fact that in order to have a modern hospital in place all the work processes had to be related to IT. This led to the implementation of the Hospital Information System (HIS). The application of IT in the day-to-day working of the largest hospital of the group.

which are integrated with the patient areas wherever required. Incorporated in 1999. This data is feeded into the system with a Unique Hospital Identifier (UHI) number allotted to the patient so that by the time the patient meets the doctor.On the date of his appointment. The hospital has also developed a very effective mailing system for its employees. he already has all the required basic information. accounting and inventory. The company’s Intranet is being used to run mailing applications as well as information relating to company policies. which means a lot when it comes to saving a life. the data is again keyed into the system as a patient record under his UHI and is accessible for quick reference. Apollo . HIS also acts as a kind of ERP for the hospital with its automation of various back-end areas like financial. One of the biggest advantages of HIS is that any medically relevant information related to the patient is available at the click of a button. which is based on Microsoft Exchange. and of great relevance to a developing country like India in taking healthcare to the masses. is the area of telemedicine. the patient registers himself at the counter by filling up of a form. which contains all the basic information related to the patient. thereby saving precious time. Telemedicine Healthcare for all A very significant IT initiative of the Apollo Hospitals Group. This is followed by 15 minutes of consultation with the doctor after which the doctor gives his prescription. leave information and basic information relating to the company.

Hyderabad and Chennai and distant locations across the country. A patient and his doctor can interact with specialists based in the specialty centers and receive second opinion or interpretations to complex medical cases. The group has forged alliances with government organisations like the Indian Space Research Organisation (ISRO) for VSAT bandwidth and Wipro for hardware. The division is working towards developing a strong Apollo Telemedicine Network. The patient reports can be transmitted from a consulting canter to a specialty canter using the telemedicine software and the communication link. which could be ISDN or VSAT connectivity. Teleme-dicine ensures that the benefits of hi-tech medicine can go to everyone. and provides their clientele access to better healthcare in areas not adequately served by the medical community. which allows the participant sites to collaborate with institutions in the country and abroad. and not just to people who live in big cities.Telemedicine Enterprises (ATEL). the telemedicine division of the Apollo Hospitals Group. . to provide telemedicine facilities to far-flung and rural areas. It has developed competence in developing costeffective turnkey telemedicine solutions. has already set up over 10 telemedicine links between the Apollo Institutions at Delhi.

00am . Cards. -Apollo Food Plaza There is food facility located in the atrium of the hospital serving a delightful array of delicacies. Books. Timings : 8.Other Services offered by Apollo: -Apollo Pharmacy Apollo Pharmacy operates round the clock catering to all your medicine needs. -Bank Facilities -The Oriental Bank of Commerce . Newspapers.9:00pm -Fast Food Cafe For the convenience of ICU attendants there is a 24 hours cafe in the ICU lobby. It offers a wide selection of snacks and a variety of meals. -Gift Shop The Gift Shop carries a wide range of gifts including Confectionery. -Café Apollo Café Apollo is a sit down dining facility of the hospital. Magazines and other novelties.

Max India plans a three tier structure of medical services – Max Consultation and Diagnostic Clinics.12:00pm The bank remains closed on Sundays and National Holidays. MaxMed.The Indraprastha Apollo Branch of the Oriental Bank of Commerce is located at one of the Gates. for education and research. Bank Hours Monday to Friday : 10:00am . . Analjit Singh has decided to invest around 200 crores. a 400 bed hospital. to arrange travel and stay for patients and family. for setting up worldclass healthcare services in India. Escorts . The company has already tied up with Harvard Medical International. 200 bed cardiac hospital. to undertake clinical trials for drugs. The company has plans of increasing the capacity to around 375 beds and also plans to tie up with an overseas partner. Max India After selling of his stake in Hutchison Max Telecom.Fortis Healthcare Fortis is the late Ranbaxy’s Parvinder Singh’s privately owned company. The company is a 250 crore. The company also has 12 cardiac and information centres in and around the town. located in the town of Mohali. under research abroad and setting up of Max University. a 150 bed multispeciality hospital and Max General. -The ICICI ATM Counter The ICICI ATM counter is also located in the hospital.2:00pm Saturday : 10:00am .

The hospital has a total 77 Critical Care beds to provide intensive care to patients after surgery or angioplasty. The EHIRC is unique in the field of Preventive Cardiology with a fully developed programme of Monitored Exercise. WOCKHARDT and DUNCANS GLENEAGLES INTERNATIONAL also have major expansion plans. .EHIRC located in New Delhi has more than 220 beds. Yoga and Meditation for Life style management. This report is prepared by Mona Pandit and Parin Mehta of Sydneham Institute of Management exclusively for India Infoline as part of their project curriculum. emergency admissions or other patients needing highly specialized management including Telecardiology (ECG transmission through telephone).

8 trillion. A big opportunity for the industry emerges from the privatisation of the insurance segment. .Opportunities With global revenues of approximately US$ 2. According to a recent study.000 hospital beds each year to meet the demand of its population.2 percent of the total population are covered under Mediclaim. The huge shortage of beds outlines a major opportunity for the industry. As per the Insurance Regulatory and Development Authority (IRDA). because of its high population. The healthcare industry is a fast growing industry and coupled with strength of Indian innovative and scientific manpower and also low costs. the healthcare industry is the world’s largest industry and India is emerging as a major player in this industry. which would extrapolate into a new delivery system in India. There is a vast insurable population in India. only 10 percent of the market potential has been tapped till date and market studies indicate a 35 percent growthin thecomingyears. as per the IRDA. A World Health Organisation report states that India needs to add 80. Further. there are 315 million potentially insurable lives in the country. the Indian healthcare industry has the potential to show the same exponential growth that the software and pharmaceutical industries have shown in the past decade. it is slowly achieving key industry status in India. given that only 2 million people ie 0.

The Healthcare Industry is on the threshold of a major Growth Spiral which shall assimilate all new technologies to provide cost effective Healthcare. including Medical and all Para-medical staff. most of the Countries in the world (Other than USA) shall add more Hospital Beds. it is anticipate that the Healthcare Industry shall grow at an accelerated pace and will achieve a Growth Rate of 8 . And world-wide it is slated to be a $4 trillion market by 2005.8 % per annum in most of the Countries of third World. As a result. in the next decade. As a result. It shall also be the biggest consumer of all new technologies.10 % per annum in India and a Growth Rate of 4 . Specifically. whose performance hasn’t been upto the mark. It shall not only employ the largest chunk of all available capital but shall also employ a large proportion of the skilled work force. It is anticipated . the Medical Education Sector. The Corporate hospitals will play a positive role in the healthcare sector by taking the load off government hospitals. This accelerated growth will require a large body of skilled Healthcare Providers. The Healthcare Industry is poised to become the biggest Employer in all Countries. investor-owned hospitals in the country as a "dramatic" development. A World Bank Report in November 1999 points at the emergence of large-scale.The Future Healthcare industry is booming all over the world. In the US it is already the largest service sector. shall also witness a faster growth.

It shall specifically affect the Medical and Surgical Supply Segment and there too. This will necessitate a greater interaction between the Healthcare Provider. It must.that the numbers of skilled Healthcare Providers shall double in next decade. the Earth's Population shall reach a peak number. It shall also fuel the growth of Pharmaceutical Industry. The average age of Earth's Population shall increase. meet . The addition of Hospital Beds shall catalyse a Growth in Hospital Equipment Industry. This growth of Healthcare Industry shall be supported by Political Will and Social Understanding at all levels of any Society. This. There shall be a shift in focus of providing Healthcare. the Medical Charge and the other segments of Healthcare Industry. as is available in the Joint Family Environment to more than half the population of world today. These new modalities shall not follow the rigid standards as set for Hospitals & shall employ a smaller number of trained medical manpower. These modalities shall augment the Home Care. while new cost effective modalities shall provide intermediate care or nursing only care. the Prosthetic Devices Segment shall witness a very rapid growth. therefore. This will require a far superior understanding of Multiple Organ Syndromes and there treatments. In the next decade. The Hospitals shall tend to be the providers of Acute & Intensive Healthcare. coupled with availability of better Healthcare shall lead to a higher Expectancy of Life at Birth.

by providing cost effective Healthcare in a manner that improves the Quality of Humane Life. .the new challenges.

A large percent of revenues come from specialized services like operations and surgeries. US research shows that 80% of the revenues form a patient comes in the first 72 hours post. which caters to specific diseases like cardiac. Typically large hospitals with approximately 500 bed capacity takes about 9-10 years to break even whereas superspecialty hospitals with about 100 beds take about 6-7 years to break even. Global experience shows that hospital with more than 250 beds don’t do well. is misleading. are profitable. Research shows that there exist a lot of space for super-specialized hospitals with 100-150 beds. Therefore. The general perception that large hospitals. cosmetic surgery. Many Indian hospitals are following the US healthcare industry. neurology etc. 2. Some hospitals make it mandatory for the . by decreasing the average length of stay of patients and increasing patient turnover.admission.Some Suggestions for improving the position of the hospitals 1. because the patient turnover is very high. It is because of these reasons that many corporates are planning for a small 100 beds specialized hospitals. with high bed-occupancy rate. going in for super-speciality hospitals seems to be a more viable option today. Hospitals generate a lot of revenues from General Inspection. which generate revenues equivalent to large 500 bed general hospital. Hospitals could also generate revenues from medicines if they are supplying them in-house.

Corporate Counselling. Claims Administration. . Pharma companies). welfare Programmes.This programme provides a medical perspective of stress and is conducted by a medical professional. For example Family Health Plan Services (FHP).With a wide net work of Hospitals and Healthcare providers countrywide. FHP offers a range of services to employees and dependants. 3. 4. Health Plan packages can be provided by hospitals to family and corporate. a subsidiary of Apollo Hospitals does health management of employees of its clients. For example ‘Effective Stress Management Programme’ offered by Wockhardt Hospital. and a tie -up with General Insurance Corporation of India. with a clinical Psychologist highlighting the factors responsible for inducing stress. Apart from preventive healthcare. Patient-care Coordination and so on. The programme includes a series of one-to-one sessions. So FHP's healthcare packages. stress management programs could be provided.patients to buy medicines from the hospital’s chemist shop. A margin of 15-20 % can be charged for such medicinal supplies. can generate good returns from medicine supply. but new entrants or corporates for whom private healthcare sector is a direct extension of their line of business ( eg. optimize the benefits while keeping the cost under control. such as Preventive Healthcare. and the methodologies. Though many hospitals run by Trusts do not earn this way. which can be adopted to cope with this phenomenon practically.

e.e. . laundry and linen etc will become "purchased" services. particularly for products in lower demand. These third-party operations will increase the profit margins. which will affect spending productivity. So there exists a lot of supply management opportunity. to help the merged organisations benefit from one another's individual strengths by applying them across the board. VHA / UHC and AmeriNet gives them the clout to exert price pressure on suppliers.i. when medicines. Alternatively hospitals can go in for Group Purchases. The buying power of large GPOs in USA like Premier. And as GPOs have consolidated. manufacturers have offered bigger discounts to hang on to their contracts.5. Hospitals can become integrated healthcare systems i. as in USA. It also helps them to make joint investments in branding or information technology and also to react effectively to the changed market forces. food services. 6. Mergers could be used for synergy of skills .

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