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.

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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

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

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

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

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

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 .

-Unique Characteristics: - The service industry has the following characteristics. This characteristic also makes it different to measure the benefits and utilities of the product. 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. . 1) Intangibility: Intangibility means that a customer would have to visualize the service offering.

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

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

2) Perishability A services cannot be stored . (Eg).Rajgovind Hospital in CBD appoints interns of Medical College for night duty on a stipend . In such a case the hospital too may lose all its patients for that day. So if the service is not consumed immediately then it loses its value. For Eg – If a doctor does not reach his dispensary on time or has his clinic locked for that particular day. In such a case again the doctor could lose out on all his patients. He loses all his patients for that day. A situation may also arise when the doctor may be unable to attend to some of his patients due to a huge rush.Same would be the situation faced by the hospitals. -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 Doctors. one from a municipal hospital and another from a reputed hospital may treat a person for the same problem. 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. attitude etc For Eg :. . 3) Variability It means that the quality of service provided to different people may not be the same.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. In such a case doctors/hospitals are the internal customers and the patients are the external customers. But their quality might differ. skills.

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. 1)Training of External customers ( Eg) Diabetic patients are trained to inject insulin on their own . attitude etc may also effect the transaction For ( Eg) . (Eg) A patient suffering from Arthritis may be required to lose weight for further treatment. 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. a customers willingness. Solutions 1)The internal customers or the fresh recruiters could be given training. For (Eg ) AMA prescribes for its member doctors 6 weeks training every year and 6 months training every 6 years. 1)The doctors could be given training and could be updated with all the latest happenings in the medical field in regular intervals. background.

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.( Eg ) In Case of health care services. ( Eg ) Auto Diagnostic equipments are used in hospital. a gym instructor may teach his members to use the gym equipments on their own. 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. Solutions This can be overcome to a certain extent through the following:- 1)Training of internal customer- .

. They could also carry out some small parts of the operation. Consultancy and the Medical world .Here one experienced person can provide training to the amateurs. 3) Video Conferencing Business Conferences. For Eg A surgeon during an operation is surrounded by interns watching the operation. 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.(eg) A unique and rare brain tumour operation can be broadcast live all over the world to subscribed medical colleges.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.

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

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

In a country like India. under hospital marketing all efforts should be for making available to the society the best possible medical aid. – they should be professionally sound and should have in-depth knowledge at psychology. Place Under hospital marketing. It can be unambiguously accepted that the medical personnel need a fair blending of two important properties i. The kind of services a hospital is rendering is also very important for determining the location of the hospital. In case of hospitals the location of hospital plays a very important role. This focuses on the instrumentality of almost all who are found involved in making services available to the ultimate users. Now in this case the service provided. 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. which you can find all over other places. Eg. Unlike other service industries. place factor for the hospitals play a very crucial role. that is the doctor may be a visiting doctor for different hospitals at different locations to beat the place factors.e. Tata memorial hospital specializes in cancer treatment and is located at a centre place unlike other normal hospitals. which is geographically vast and where majority of the population lives in the rural areas. distribution of Medicare services plays a crucial role. A typical small village / town may be having small .

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

 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. . Hospital is a place where small activity undertaken can be a matter of life and death. which has to be understood by the doctors and other staff. nurses. so the people factor is very important. 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. The people of the hospital should be constantly motivated to give the best of their effort. One of the major classifications of hospitals is – private and government. The patients in the hospitals are already suffering from trauma. 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 Indian government hospitals except a few almost all the hospitals and their personnel hardly find the behavioural dimensions significant. supporting staff etc. In the government hospital the people factor has to be specially taken care of. Under hospital marketing a right person for the right job has to be appointed and they should be adaptable and possess versatility.

A typical process involved in a medium sized hospital can be as follows. Process Process generally forms the different tasks that are performed by the hospital. The experience of the patient depends on the final interplay of all these factors. The most important elements are lines of communication within the setup. The process factor is mainly dependent on the size of the hospital and kind of service it is offering. These stages do not exist separately but are interlinked. Apart from this flow there are other allied activities like record keeping administration at services etc which fall under the process 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. a smart building infrastructure indicates that the hospital can take care of all the needs of the patient. Physical evidence It does play an important role in health care services. which helps. in developing in the minds of the people. Lilavati hospital has got a smart building. . 2. logos. Examples 1. the impression that it is the safest option among the different hospitals available to the people. Fortis and Apollo hospitals have a unique logo. mascots etc. which can be easily identified. For a local small time dispensary or hospital physical evidence may not be of much help. as the core benefit a customer seeks is proper diagnosis and cure of the problem. Physical evidence also helps in beating the intangibility factor.

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

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. Birla Health Centres . they help in generating word-of- . A person in need of a health care service does not know for sure where to search for relevant information. The patients of upper middle and upper income group have a wide choice to make from a number of clinics and hospitals. three fourths of the total doctors have engaged themselves in this part.etc. the images of the firms swill affect their competitive standing. satisfied past patients of a hospital can bring more number of patients to that hospital than a number of advertisements. but they may operate from the urban area. relations and friends first. He consults his family members. Word-of-mouth plays a very important role in promotion of hospitals. The patients who come to a hospital generally have the old patients of that hospital as referrals. Many of these doctors visit the contiguous rural areas. many hospitals have abandoned traditions and adopted marketing strategies to woo more and more patients to their clinics. Therefore. 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.The health care field has become very competitive. Although around onefourth of our population stays in urban India. In a competitive market place. Artificial heart transplants and other complex operations although are few in number and generate a small portion of the total revenue. Therefore.

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

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

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

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

The group is planning to invest Rs. 2000 crore . Sri Lanka. comprising of one of the largest networks of 26 hospitals. to bulid around 15 new hospitals. With 2600 beds. 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. in India. . Indian Hospitals Corporation Ltd. it will save around 10% of the material cost. represents the changing face of healthcare in India contemporary and corporatised..15. 3. The Apollo group is India’s first corporate hospital. Apollo claims to maintain the best of medical standards with a record of over 7. the first to set-up hospital outside the country and the first to attract foreign investment. Deccan hospitals Corporation Limited and Om Sindoori Hospitals Limited. 10 clinics and over 10. Nepal and Malaysia. will help the group raise money at a better rate and by consolidating inventory.SOME PLAYERS The Apollo Group of Hospitals Driven by its line of being the “architect of healthcare” in India.000 employees across the country. The recent merger between its 3 group companies. Apollo is one of Asia’s largest healthcare players.000 preventive health checks done.4 million treated patients. the Apollo Hospitals Group.

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

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

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

Other Services offered by Apollo: -Apollo Pharmacy Apollo Pharmacy operates round the clock catering to all your medicine needs. Timings : 8.9:00pm -Fast Food Cafe For the convenience of ICU attendants there is a 24 hours cafe in the ICU lobby. Cards. -Bank Facilities -The Oriental Bank of Commerce . Newspapers. -Apollo Food Plaza There is food facility located in the atrium of the hospital serving a delightful array of delicacies. Books. It offers a wide selection of snacks and a variety of meals.00am . -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.

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

The hospital has a total 77 Critical Care beds to provide intensive care to patients after surgery or angioplasty. . WOCKHARDT and DUNCANS GLENEAGLES INTERNATIONAL also have major expansion plans. 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. Yoga and Meditation for Life style management.EHIRC located in New Delhi has more than 220 beds. The EHIRC is unique in the field of Preventive Cardiology with a fully developed programme of Monitored Exercise. emergency admissions or other patients needing highly specialized management including Telecardiology (ECG transmission through telephone).

There is a vast insurable population in India. . it is slowly achieving key industry status in India.2 percent of the total population are covered under Mediclaim. A World Health Organisation report states that India needs to add 80. As per the Insurance Regulatory and Development Authority (IRDA). The healthcare industry is a fast growing industry and coupled with strength of Indian innovative and scientific manpower and also low costs. 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. According to a recent study.000 hospital beds each year to meet the demand of its population. only 10 percent of the market potential has been tapped till date and market studies indicate a 35 percent growthin thecomingyears. there are 315 million potentially insurable lives in the country. A big opportunity for the industry emerges from the privatisation of the insurance segment. Further. given that only 2 million people ie 0. the healthcare industry is the world’s largest industry and India is emerging as a major player in this industry. The huge shortage of beds outlines a major opportunity for the industry. because of its high population. as per the IRDA. which would extrapolate into a new delivery system in India.Opportunities With global revenues of approximately US$ 2.8 trillion.

8 % per annum in most of the Countries of third World.The Future Healthcare industry is booming all over the world. investor-owned hospitals in the country as a "dramatic" development. It shall also be the biggest consumer of all new technologies. The Healthcare Industry is on the threshold of a major Growth Spiral which shall assimilate all new technologies to provide cost effective Healthcare. whose performance hasn’t been upto the mark. A World Bank Report in November 1999 points at the emergence of large-scale. Specifically. In the US it is already the largest service sector. The Corporate hospitals will play a positive role in the healthcare sector by taking the load off government hospitals.10 % per annum in India and a Growth Rate of 4 . including Medical and all Para-medical staff. it is anticipate that the Healthcare Industry shall grow at an accelerated pace and will achieve a Growth Rate of 8 . shall also witness a faster growth. And world-wide it is slated to be a $4 trillion market by 2005. the Medical Education Sector. The Healthcare Industry is poised to become the biggest Employer in all Countries. As a result. most of the Countries in the world (Other than USA) shall add more Hospital Beds. This accelerated growth will require a large body of skilled Healthcare Providers. It is anticipated . As a result. It shall not only employ the largest chunk of all available capital but shall also employ a large proportion of the skilled work force. in the next decade.

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

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

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

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

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

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