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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
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
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
Many of the trust hospitals suffer from poor management. little has been done to update or amend the policy even as the country changes and the new health problems arise from ecological degradation. Hence it became possible to get long term funding from the Financial Institutions. contributed to greater attention being paid to health. However.away from investing in the healthcare industry. higher levels of income and increasing awareness through deep penetration of media channels. Socio-Economic Changes: The rise of literacy rate . With the rise in the . 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. the hospital hardware and the software companies that have come together to create the boom. there are the insurance companies. Good corporate hospitals are still too few to amount to a critical mass. Government and trust hospitals dominate the scene. The government also reduced the import duty on medical equipment’s and technology. The focus has been on epidemiological profile of the medical care and not on comprehensive healthcare. Since the National Health Policy (the policy’s main objective was ‘Health For All’ by the Year 2000) was approved in 1983. the healthcare sector was recognized as an industry. thus opening up the sector. now.
By lending their name to the hospital. travel insurance. 60% of the total health expenditure comes from self paid category as against governments contribution of 25-30 %. patient guidance facilities. A majority of private hospitals are expensive for a normal middle class family. in India only 2 million people ( 0. they develop a good image in the markets which further improves the brand image of products from their other businesses. Currently. Extension To Related Business: Some pharmaceutical companies like Wockhardt and Max India. Opening Of The Insurance Sector: In India. approx. whereas in developed nations like USA about 75 % of the total population are covered under some insurance scheme. Brand Development: Many family run business houses. . has never aggressively marketed health insurance.system of nuclear families.2 % of total population of 1 billion). This will give a great advantage to private players like Cigna which is planning to launch Smart Cards that can be used in hospitals. etc. General Insurance Company. have set-up charity hospitals. GIC takes upto 6 months to process a claim and reimburses customers after they have paid for treatment out of their own pockets. Moreover. Health Insurance will make healthcare affordable to a large number of people. 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. are covered under Mediclaim. The opening up of the insurance sector to private players is expected to give a shot in the arms of the healthcare industry.
.The Consultants. Medical Equipments. Financiers and Insurance Agencies are to benefit from this boom. to assume insurance risks on clients behalf. The insurers will use PPOs. Medical Software and Hospitals will see the biggest boom. that will grow into HMOs.
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.THE SERVICE MARKETING TRIANGLE: HOSPITAL DOCTOR PATIENT Company: Here. 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. the inseparable part of the hospital is the provider. . A satisfied patient is a very important source of word of mouth promotion for the organization. the hospital is the company that dreams up an idea of service offering (treatment). Provider: Doctor.
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. This characteristic also makes it different to measure the benefits and utilities of the product.-Unique Characteristics: - The service industry has the following characteristics. 1) Intangibility: Intangibility means that a customer would have to visualize the service offering. . 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.
There is no ownership over the doctor or the services provided by him . One can only visulalise the same. . It would also give the customer a certain level of confidence regarding the services provided in the hospital. These can only be experienced by the customer. i) The services of a doctor i.e.In the product service continuum. his diagnosis etc cannot be touched felt or seen.In case of hospitals any visual of the hospital displaying the well maintained interiors. ii) They can also not measure the benefits. the consulatation provided by the doctor . b) Association: The association of a hospital with any well known personality would help as a good image building exercise . hospitals fall in the bracket of highly intangible where the service has credence qualities. The remedial measures to overcome intangibility are:- a) The marketer should visualize the product/service for the patient. the hi-tech equipments used for treatment would help to tangibilise the product.
The Red Cross signifies the Hospital. Hence a customer is sure about the services provided in these hospitals. (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. 3)Symbols – The Red Cross is the common logo with which people indentify hospitals.The white uniforms of the Doctors And Nurses in enemy hospitals.For (eg 1). Also logos of hospitals like Wockhardt. They are owned by these corporate families.Hospitals like the Tata Memorial Hospital or the Hinduja hospital are associated with Corporate Houses. Since it is owned by Lata Mangeshkar the customer is sure to receive quality services.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. 2)Uniforms. ( Eg) Apollo Hospital. .
In such a case again the doctor could lose out on all his patients. A situation may also arise when the doctor may be unable to attend to some of his patients due to a huge rush.Rajgovind Hospital in CBD appoints interns of Medical College for night duty on a stipend . For Eg – If a doctor does not reach his dispensary on time or has his clinic locked for that particular day. (Eg). He loses all his patients for that day.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. In such a case the hospital too may lose all its patients for that day.2) Perishability A services cannot be stored . So if the service is not consumed immediately then it loses its value.
skills. In such a case doctors/hospitals are the internal customers and the patients are the external customers. 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. one from a municipal hospital and another from a reputed hospital may treat a person for the same problem. 3) Variability It means that the quality of service provided to different people may not be the same. (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.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. But their quality might differ. .2 Doctors. attitude etc For Eg :.
They could be given a chance to perform the small parts of an operation in order to gain experience. attitude etc may also effect the transaction For ( Eg) . (Eg) A patient suffering from Arthritis may be required to lose weight for further treatment. a customers willingness. But the patient may not have the drive/willingness to lose weight . 1)The doctors could be given training and could be updated with all the latest happenings in the medical field in regular intervals. Solutions 1)The internal customers or the fresh recruiters could be given training. background. 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.A patient may want to avail of a doctors services but may not be able to afford the services.Since a transaction is always two way communication.
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- . ( Eg ) Auto Diagnostic equipments are used in hospital. 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.( Eg ) In Case of health care services. 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.
. They could also carry out some small parts of the operation. For Eg A surgeon during an operation is surrounded by interns watching the operation. Consultancy and the Medical world .(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. 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. 3) Video Conferencing Business Conferences.
The patients are required to wear disinfected linen which should be made available. the quality of services cannot be improved. seeking to satisfy the new wants and demands of the consumer. we find sophisticated equipments and unless hospitals make the same services available the same. in a true sense determine the quality of services made available by medical and para-medical personnel. The radiology department should have hi-tech facilities keeping in view the pressure of work. To get the best result from OT. . it is natural that we are very particular about managing our services in the right fashion.7 Ps of marketing for hospitals Product: The service product is an offering of commercial intent having features of both intangible and tangible. These services which include laboratory. The service product of the hospitals normally have the following features: o Quality Level: When we talk about marketing hospitals. catering. Hospital industry is action oriented and there is a lot of interaction with the customers (patients). In addition. the dresses and clothes are also required to be made bacteria free. Of late. They get a strong base for treatment since the diagnostic aspect determines a direction. Supportive services play an important role in improving the quality of medicare. blood-banks. radiology and laundry. it is natural that equipments are properly sterlised.
at once. Hospitals have different wards . to differentiate themselves. cardiology department. o Product line: hospitals through their services offer many choices to the patients and cover a wide range of customer needs. tests. yoga sessions. For example: Apollo hospital has dental department. etc. o Brand name: The hospitals. stay. etc.o Accessories: This is a very good way of segmenting customers. he can pay a lump sum amount during admission. Eg: Apollo hospital offers a full health check-up to the patients. Certain hospitals provide services for the family members of the patients (when they are not from the same city) – accommodation and catering. For example if a person has to undergo a bypass surgery. for the customers (patients)who are willing to pay extra. and within the dental department it has dental surgery. etc. The intangibility factor of the service makes it all the more important for the hospitals to do so. etc. . cafeterias. say rupees 1 lakh for all procedures. root canal. o Packaging: It is the bundling of many services into the core service. laundry. Many hospitals provide additional services such as catering. Similarly other hospitals also offer package deals for health check-ups. and their services from others use a brand name.General and Special.
under hospital marketing all efforts should be for making available to the society the best possible medical aid. A typical small village / town may be having small . that is the doctor may be a visiting doctor for different hospitals at different locations to beat the place factors. which you can find all over other places. It can be unambiguously accepted that the medical personnel need a fair blending of two important properties i. which is geographically vast and where majority of the population lives in the rural areas. Place Under hospital marketing. place factor for the hospitals play a very crucial role. Eg. distribution of Medicare services plays a crucial role. Now in this case the service provided.e. 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. This focuses on the instrumentality of almost all who are found involved in making services available to the ultimate users. In a country like India. Tata memorial hospital specializes in cancer treatment and is located at a centre place unlike other normal hospitals. In case of hospitals the location of hospital plays a very important role. The kind of services a hospital is rendering is also very important for determining the location of the hospital. Unlike other service industries. – they should be professionally sound and should have in-depth knowledge at psychology.
dispensaries but they will not have super speciality hospitals. For that they will have to be dependent on the hospitals in the urban areas. .
Hospital is a place where small activity undertaken can be a matter of life and death. 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. The patients in the hospitals are already suffering from trauma. supporting staff etc. The people of the hospital should be constantly motivated to give the best of their effort. In Indian government hospitals except a few almost all the hospitals and their personnel hardly find the behavioural dimensions significant. In the government hospital the people factor has to be specially taken care of. nurses. One of the major classifications of hospitals is – private and government. 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. which has to be understood by the doctors and other staff. 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 earliest and the best way of having control on the quality of people will be by approving professionally sound doctors and other staff. .
A typical process involved in a medium sized hospital can be as follows. 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. The experience of the patient depends on the final interplay of all these factors. The process factor is mainly dependent on the size of the hospital and kind of service it is offering. . Process Process generally forms the different tasks that are performed by the hospital. The most important elements are lines of communication within the setup.
the impression that it is the safest option among the different hospitals available to the people. mascots etc. a smart building infrastructure indicates that the hospital can take care of all the needs of the patient. Fortis and Apollo hospitals have a unique logo. which helps. Physical evidence can be in the form of smart buildings. 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. logos. Examples 1. In recent days some major super speciality hospitals are using physical evidence for distinguishing itself as something unique. Physical evidence also helps in beating the intangibility factor. Physical evidence It does play an important role in health care services. Lilavati hospital has got a smart building. in developing in the minds of the people. which can be easily identified. 2.
This market consists of 180 million strong middle income group and a small income group. In case of health care products and services use for “common man” appeal is widely prevalent. In villages. are reserved for advertising social issues like family planning. budget and the sales promotion. it will also work equally well for him. hoardings and wall writings near the markets and recreation centers attract the attention of villagers. The last decade has witnessed a health. This group has a large discretionary income.V. appearance and nutrition conscious population. The identification with the common man is easy and quick. Unlike the urban area. media type. Besides TV. in rural areas newspapers and magazines do not have the same impact in conveying messages. Since a few years the prime times in T. An ordinary person thinks that if it works well for people like him. care for the girl child and so on. . use of different types of contraceptives. These discerning consumers are very careful in choosing health care services. These commercials use the common man approach for reference group appeal. other media of promotion are to be used innovatively. The use of celebrities is not as effective as that of a common man. Promotion: Hospitals for promotion use either advertisement or PR or both after taking into consideration the target customers.
Therefore. Artificial heart transplants and other complex operations although are few in number and generate a small portion of the total revenue. Therefore. many hospitals have abandoned traditions and adopted marketing strategies to woo more and more patients to their clinics. relations and friends first. satisfied past patients of a hospital can bring more number of patients to that hospital than a number of advertisements. A person in need of a health care service does not know for sure where to search for relevant information. Word-of-mouth plays a very important role in promotion of hospitals. they help in generating word-of- .The health care field has become very competitive. 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 . The patients of upper middle and upper income group have a wide choice to make from a number of clinics and hospitals. In a competitive market place. Although around onefourth of our population stays in urban India. but they may operate from the urban area. The patients who come to a hospital generally have the old patients of that hospital as referrals. three fourths of the total doctors have engaged themselves in this part. 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. He consults his family members. Many of these doctors visit the contiguous rural areas.etc. the images of the firms swill affect their competitive standing.
Many of these companies are spending a lot in corporate advertising for Image building. .mouth which health care providers are actually interested.
as they felt that the patients would take them as profit oriented organisation rather than service oriented organisation. 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. But the major argument at that time lay in understanding whether this professional orientation was really required for its viability. marketing was . Even the TPAs started building tieups with corporate clients and there was already an abysmal utilisation of resources in the existing hospitals. when very few hospitals realised that it was necessary to incorporate marketing as an integral function in the hospital operations. profitability and sustainability. apart from the ongoing mergers and acquisitions that were already taking place at that time. ‘Perception of patients’ was another important consideration for hospitals.Marketing hospitals Marketing in Hospitals Marketing is unethical” was the frequent refrain in the eighties. Ultimately.
working in the companies of these Trustees. which further have understanding with corporates. that they attract patients and generate funds. inflow of patients. they are worried more about the patients’ perception of hospitals and therefore the concept of brand restructuring and brand engineering is vital. This indirectly leads to increase in.accepted only by a few while the others discarded the concept. . a special discount of 20 % on all preventive health checks is offered to all shareholders of Apollo Hospitals Limited. it becomes necessary. • 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 . Some of them are listed below: • Many hospitals have eminent personalities from the industry in their Board of trustees. As hospitals spend millions of rupees in technology and infrastructure. In an era where hospitals are experiencing a major shift in their clientele. In order. Lately it has been felt that many Indian hospitals have a dilemma regarding the functions of marketing. the hospitals follow various marketing and brand building exercises. • 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. For example. which further sends them to the hospital for check-ups and treatment. Besides the presence of eminent personalities creates a sense of confidence in the minds of people. to do the same.
which becomes a natural advantage for the hospital. reflect the technological and knowledge. whereas Lilavati Hospital is known for its five-star services.based edge of the hospital over the competitors. Hinduja Hospital is known for its high-quality healthcare at reasonable rates. using the same infrastructure.• The success rate of crucial operations and surgeries. • Some hospitals by means of their past track record have created a niche market for themselves. who could in future refer complicated cases to the hospital. for detailed discussion. Such successes are discussed in health magazines and newspapers. • Hospitals hold seminars and conferences relating to specific diseases. This helps them to generate extra resources in form of fees. where they invite the doctors from all round the country. For example. This makes the hospital well known amongst the doctors. • Hospitals can also promote medical colleges. .
4 million treated patients. will help the group raise money at a better rate and by consolidating inventory. 10 clinics and over 10. Deccan hospitals Corporation Limited and Om Sindoori Hospitals Limited. Nepal and Malaysia. in India. Indian Hospitals Corporation Ltd. Apollo claims to maintain the best of medical standards with a record of over 7. Apollo is one of Asia’s largest healthcare players.15. The Apollo group is India’s first corporate hospital. 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 employees across the country. the Apollo Hospitals Group. . With 2600 beds. Sri Lanka. represents the changing face of healthcare in India contemporary and corporatised.000 preventive health checks done. it will save around 10% of the material cost. to bulid around 15 new hospitals. 3.. 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. The group is planning to invest Rs. 2000 crore . The recent merger between its 3 group companies.
purchase and HRD. finance. engineering. 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. Depending on the availability of the doctor. 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. . throws light on the extent of the automation drive within the company.98. the need for an end-to-end integrated solution. This led to the implementation of the Hospital Information System (HIS). materials. And helping the company maintain a balance between the corporate culture and rigorous medical excellence is recognition of IT as intrinsic to every process. education or telemedicine. etc. which provides for end-toend integration of the various processes and functional areas within the hospital to make for a seamless workflow. The application of IT in the day-to-day working of the largest hospital of the group. whether it is day-to-day running of hospitals. which was an integral part of the hospital inception project. HIS contains all the information relating to appointment schedules of the doctors. This information is then fed into the system and the updated information is available to the doctor in real-time. Indraprastha Apollo. The workflow process starts with the patient seeking an appointment with the doctor.000 cardiac surgeries.5 percent success rate in 45. Hence. the patient is given the date and time of appointment. The hospital today boasts of an integrated HIS.
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. Incorporated in 1999. the patient registers himself at the counter by filling up of a form. is the area of telemedicine. HIS also acts as a kind of ERP for the hospital with its automation of various back-end areas like financial.On the date of his appointment. the data is again keyed into the system as a patient record under his UHI and is accessible for quick reference. This is followed by 15 minutes of consultation with the doctor after which the doctor gives his prescription. Apollo . which is based on Microsoft Exchange. accounting and inventory. leave information and basic information relating to the company. 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. he already has all the required basic information. which are integrated with the patient areas wherever required. 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. thereby saving precious time. which means a lot when it comes to saving a life. which contains all the basic information related to the patient. Telemedicine Healthcare for all A very significant IT initiative of the Apollo Hospitals Group. and of great relevance to a developing country like India in taking healthcare to the masses.
the telemedicine division of the Apollo Hospitals Group. and not just to people who live in big cities. It has developed competence in developing costeffective turnkey telemedicine solutions. Hyderabad and Chennai and distant locations across the country. Teleme-dicine ensures that the benefits of hi-tech medicine can go to everyone. to provide telemedicine facilities to far-flung and rural areas. The group has forged alliances with government organisations like the Indian Space Research Organisation (ISRO) for VSAT bandwidth and Wipro for hardware. which allows the participant sites to collaborate with institutions in the country and abroad. has already set up over 10 telemedicine links between the Apollo Institutions at Delhi. and provides their clientele access to better healthcare in areas not adequately served by the medical community. . 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.Telemedicine Enterprises (ATEL). which could be ISDN or VSAT connectivity. A patient and his doctor can interact with specialists based in the specialty centers and receive second opinion or interpretations to complex medical cases.
-Apollo Food Plaza There is food facility located in the atrium of the hospital serving a delightful array of delicacies. Timings : 8.Other Services offered by Apollo: -Apollo Pharmacy Apollo Pharmacy operates round the clock catering to all your medicine needs. Magazines and other novelties. Cards.9:00pm -Fast Food Cafe For the convenience of ICU attendants there is a 24 hours cafe in the ICU lobby. -Bank Facilities -The Oriental Bank of Commerce . -Gift Shop The Gift Shop carries a wide range of gifts including Confectionery. Books. It offers a wide selection of snacks and a variety of meals.00am . Newspapers. -Café Apollo Café Apollo is a sit down dining facility of the hospital.
The Indraprastha Apollo Branch of the Oriental Bank of Commerce is located at one of the Gates. The company is a 250 crore. Escorts .Fortis Healthcare Fortis is the late Ranbaxy’s Parvinder Singh’s privately owned company. 200 bed cardiac hospital. Max India plans a three tier structure of medical services – Max Consultation and Diagnostic Clinics. The company has already tied up with Harvard Medical International. The company also has 12 cardiac and information centres in and around the town.12:00pm The bank remains closed on Sundays and National Holidays. to undertake clinical trials for drugs. for setting up worldclass healthcare services in India. Analjit Singh has decided to invest around 200 crores. located in the town of Mohali.2:00pm Saturday : 10:00am . The company has plans of increasing the capacity to around 375 beds and also plans to tie up with an overseas partner. a 400 bed hospital. to arrange travel and stay for patients and family. for education and research. Bank Hours Monday to Friday : 10:00am . -The ICICI ATM Counter The ICICI ATM counter is also located in the hospital. under research abroad and setting up of Max University. . a 150 bed multispeciality hospital and Max General. MaxMed. Max India After selling of his stake in Hutchison Max Telecom.
emergency admissions or other patients needing highly specialized management including Telecardiology (ECG transmission through telephone). The EHIRC is unique in the field of Preventive Cardiology with a fully developed programme of Monitored Exercise. 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. WOCKHARDT and DUNCANS GLENEAGLES INTERNATIONAL also have major expansion plans. Yoga and Meditation for Life style management. .EHIRC located in New Delhi has more than 220 beds. The hospital has a total 77 Critical Care beds to provide intensive care to patients after surgery or angioplasty.
A big opportunity for the industry emerges from the privatisation of the insurance segment. it is slowly achieving key industry status in India. Further.000 hospital beds each year to meet the demand of its population. given that only 2 million people ie 0. The healthcare industry is a fast growing industry and coupled with strength of Indian innovative and scientific manpower and also low costs. there are 315 million potentially insurable lives in the country. . the healthcare industry is the world’s largest industry and India is emerging as a major player in this industry.Opportunities With global revenues of approximately US$ 2. 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. There is a vast insurable population in India.8 trillion. According to a recent study. A World Health Organisation report states that India needs to add 80. as per the IRDA. only 10 percent of the market potential has been tapped till date and market studies indicate a 35 percent growthin thecomingyears.2 percent of the total population are covered under Mediclaim. The huge shortage of beds outlines a major opportunity for the industry. which would extrapolate into a new delivery system in India. As per the Insurance Regulatory and Development Authority (IRDA). because of its high population.
8 % per annum in most of the Countries of third World. Specifically. A World Bank Report in November 1999 points at the emergence of large-scale. most of the Countries in the world (Other than USA) shall add more Hospital Beds.The Future Healthcare industry is booming all over the world. shall also witness a faster growth. As a result. it is anticipate that the Healthcare Industry shall grow at an accelerated pace and will achieve a Growth Rate of 8 . whose performance hasn’t been upto the mark. in the next decade.10 % per annum in India and a Growth Rate of 4 . And world-wide it is slated to be a $4 trillion market by 2005. including Medical and all Para-medical staff. investor-owned hospitals in the country as a "dramatic" development. The Healthcare Industry is poised to become the biggest Employer in all Countries. the Medical Education Sector. The Corporate hospitals will play a positive role in the healthcare sector by taking the load off government hospitals. The Healthcare Industry is on the threshold of a major Growth Spiral which shall assimilate all new technologies to provide cost effective Healthcare. It shall also be the biggest consumer of all new technologies. In the US it is already the largest service sector. As a result. It is anticipated . It shall not only employ the largest chunk of all available capital but shall also employ a large proportion of the skilled work force. This accelerated growth will require a large body of skilled Healthcare Providers.
The addition of Hospital Beds shall catalyse a Growth in Hospital Equipment Industry. the Prosthetic Devices Segment shall witness a very rapid growth. while new cost effective modalities shall provide intermediate care or nursing only care. The Hospitals shall tend to be the providers of Acute & Intensive Healthcare. This growth of Healthcare Industry shall be supported by Political Will and Social Understanding at all levels of any Society. meet . This will require a far superior understanding of Multiple Organ Syndromes and there treatments. There shall be a shift in focus of providing Healthcare. as is available in the Joint Family Environment to more than half the population of world today. The average age of Earth's Population shall increase. These modalities shall augment the Home Care. the Medical Charge and the other segments of Healthcare Industry. therefore. These new modalities shall not follow the rigid standards as set for Hospitals & shall employ a smaller number of trained medical manpower. It shall also fuel the growth of Pharmaceutical Industry.that the numbers of skilled Healthcare Providers shall double in next decade. coupled with availability of better Healthcare shall lead to a higher Expectancy of Life at Birth. the Earth's Population shall reach a peak number. It must. In the next decade. This. It shall specifically affect the Medical and Surgical Supply Segment and there too. This will necessitate a greater interaction between the Healthcare Provider.
by providing cost effective Healthcare in a manner that improves the Quality of Humane Life. .the new challenges.
2. neurology etc. Hospitals could also generate revenues from medicines if they are supplying them in-house. The general perception that large hospitals. It is because of these reasons that many corporates are planning for a small 100 beds specialized hospitals. because the patient turnover is very high. Therefore. Research shows that there exist a lot of space for super-specialized hospitals with 100-150 beds. with high bed-occupancy rate. Many Indian hospitals are following the US healthcare industry. Hospitals generate a lot of revenues from General Inspection. going in for super-speciality hospitals seems to be a more viable option today. US research shows that 80% of the revenues form a patient comes in the first 72 hours post.admission. which generate revenues equivalent to large 500 bed general hospital. which caters to specific diseases like cardiac. are profitable.Some Suggestions for improving the position of the hospitals 1. 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. is misleading. A large percent of revenues come from specialized services like operations and surgeries. cosmetic surgery. Global experience shows that hospital with more than 250 beds don’t do well. by decreasing the average length of stay of patients and increasing patient turnover. Some hospitals make it mandatory for the .
So FHP's healthcare packages. Health Plan packages can be provided by hospitals to family and corporate. such as Preventive Healthcare. Patient-care Coordination and so on. but new entrants or corporates for whom private healthcare sector is a direct extension of their line of business ( eg. and the methodologies. can generate good returns from medicine supply. Corporate Counselling. stress management programs could be provided. 3. welfare Programmes. A margin of 15-20 % can be charged for such medicinal supplies. For example Family Health Plan Services (FHP).This programme provides a medical perspective of stress and is conducted by a medical professional. For example ‘Effective Stress Management Programme’ offered by Wockhardt Hospital. with a clinical Psychologist highlighting the factors responsible for inducing stress. . and a tie -up with General Insurance Corporation of India. Claims Administration.With a wide net work of Hospitals and Healthcare providers countrywide. FHP offers a range of services to employees and dependants. Apart from preventive healthcare. optimize the benefits while keeping the cost under control. Pharma companies). which can be adopted to cope with this phenomenon practically. Though many hospitals run by Trusts do not earn this way. 4. The programme includes a series of one-to-one sessions. a subsidiary of Apollo Hospitals does health management of employees of its clients.patients to buy medicines from the hospital’s chemist shop.
as in USA. Mergers could be used for synergy of skills .e. manufacturers have offered bigger discounts to hang on to their contracts. So there exists a lot of supply management opportunity. VHA / UHC and AmeriNet gives them the clout to exert price pressure on suppliers.i. Hospitals can become integrated healthcare systems i. which will affect spending productivity. particularly for products in lower demand. .5. to help the merged organisations benefit from one another's individual strengths by applying them across the board. 6. food services. These third-party operations will increase the profit margins. Alternatively hospitals can go in for Group Purchases. when medicines. laundry and linen etc will become "purchased" services. The buying power of large GPOs in USA like Premier. And as GPOs have consolidated.e. It also helps them to make joint investments in branding or information technology and also to react effectively to the changed market forces.
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