Presentation Transcript

Service Sector ManagementHEALTH CARE SECTOR : Service Sector ManagementHEALTH CARE SECTOR

BEFORE INDEPENDENCE : BEFORE INDEPENDENCE HEALTHCARE HAS BEEN BASED ON VOLUNTARY WORK MEDICINAL PROPERTIES OF PLANT AND HERBS WAS PASSED FROM ONE GENERATION TO ANOTHER

AFTER INDEPENDENCE : AFTER INDEPENDENCE GOVERNMENT OF INDIA LAID DOWN A STRESS ON PRIMARY HEALTH CARE. GOVERNMENT INITIATIVE WAS NOT ENOUGH TO MEET THE DEMAND. ALTERNATE SOURCES OF FINANCE WERE CRITICAL FOR SUSTAINABILITY OF THE HEALTH SECTOR.

ENTRY OF PRIVATE SECTOR : ENTRY OF PRIVATE SECTOR GOVERNMENT ON ITS OWN WOULD NOT BE ABLE TO PROVIDE MORE FACILITIES FOR HEALTH CARE. GOVERNMENT ALLOWED THE ENTRY OF PRIVATE SECTOR TO REDUCE THE GAP BETWEEN THE SUPPLY AND DEMAND FOR HEALTH CARE.

AND NOW : AND NOW ONE OF THE LARGEST AND FAST GROWING SERVICE SECTOR. REVENUES ACCOUNTS TO 5.2% GDP EMPLOYS OVER 4 MILLON PEOPLE BY 2012 REVENUE CAN REACH 6.5 TO 7.2% OF GDP INDIA IS THE MOST PREFERED DISTINATION FOR HEALTH CARE AMONG THE DEVELOPING COUNTRIES Twenty eight for the destruction on the other side of that

HOSPITALS : HOSPITALS

NURSING HOMES : NURSING HOMES

FITNESS CENTERS : FITNESS CENTERS

AMBULATORY SERVICES : AMBULATORY SERVICES

MEDICAL EQUIPMENT MANUFACTURERES : MEDICAL EQUIPMENT MANUFACTURERES

PHARMACEUTICALS : PHARMACEUTICALS

7 Ps of Hospital Services : 7 Ps of Hospital Services

PRODUCT : PRODUCT

Product : Product Line services: Emergency services

2. Out-patient department (OPD) : 2. Out-patient department (OPD)

3. In-patient services : 3. In-patient services

5. Operation theaters (OT) : 5. Operation theaters (OT)

Product :

Product Supportive services: Official laundry Hospital medication Blood bank Pathology Radiology

Product : Auxiliary services: Temple & mediitation 24 hr chemist Security arrangement SEWA Product

Price : Price Differential pricing strategy Externally Internally

Price : Innovative pricing strategy: Price

Price : Delivering value Traditional approach Modern approach Price

Place : Place Avoid inconveniences Adequate transport & communication facilities Avoid congestion & atmospheric pollution

Promotion : Promotion Promotion techniques Personal Impersonal

Promotion : Personal promotion i.e. word of mouth Promotion

Promotion : Impersonal promotion: Press release Promotion

Slide 28: 2. Bill boards Promotion

Promotion : 3. In-film placement Promotion

Promotion : 4. Check-ups through campaign Promotion

People : People

The objective of providing quality service to patients can be achieved by: : The objective of providing quality service to patients can be achieved by: Motivating employees to be efficient, dedicated and loyal to the organization. Providing regular on-the-job training of employees to ensure continuous improvement in health care Utilizing services of professionally competent medical consultants. Use of the latest technology.

Process : Process Two different type of process for: Outpatient. Inpatient

Outpatient : Outpatient Meeting doctor at appointed time Simple medication Diagnosis Treatment.

Inpatient. : Inpatient. The intensive consumption phase Registration. The arrival of patient. Joining phase Diagnosis. Information about future action Treatment. Detachment phase Discharge of patient & payment

Physical Evidence : Physical Evidence Physical evidence is the environment in which the service is delivered with physical or tangible commodities and where the hospital and the customer interacts.

Hospital Counter : Hospital Counter

Common Ward : Common Ward

Single Room : Single Room

Emergency Room : Emergency Room

Common Room : Common Room

Dress Code : Dress Code

Certificates and Awards : Certificates and Awards

Slide 44: SWOT ANALYSIS

STRENGTHS : STRENGTHS Low cost of production Specialization Infrastructure and Efficient technologies Large pool of skilled doctors Low pricing in public hospitals

WEAKNESS : WEAKNESS Highly fragmented leading to Price competition The Indian pharmacy companies are marred by the price regulation by NPPA Competition for small healthcare centers Cost of treatment is not affordable Imitated Drugs Rural Healthcare A cause of concern Low share of India in World Pharmaceutical Production (1.2% of world production but having 16.1% of world's population).

OPPORTUNITIES : OPPORTUNITIES Largely untapped market. Switching over from process patent to product patent. Growing incomes and Growing attention for health. Global outsourcing hub for pharmaceutical products.

THREATS : THREATS Containment of rising health-care cost Threats from other low cost countries like China and Israel exist. The short-term threat for the pharmacy industry is the uncertainty regarding the implementation of VAT.

Public Hospitals vs. Private Hospitals : Public Hospitals vs. Private Hospitals Public Fully funded by government Service oriented They dont do much promotion Charge low fees Lacks good infrastructure Process of admission to discharge is difficult. No personal or proper care of patients People i.e. doctors are highly qualified as well they staff interns Private Owned by private people. Profit oriented Huge promotion Are quite costly Infrastructure is well maintained Comparatively easy process Very good care of patients People i.e. doctors are experienced

Governments Initiative : Governments Initiative Union Budget 2009: India to Spend $4.35 Billion on Healthcare To encourage investment in the health care sector, government of India has allowed 100% FDI under the

automatic route Reduction in custom tariffs on medical equipment Government has also announced tax holiday for five years for the hospitals in rural areas Universal Health Insurance Scheme

RECENT DEVELOPMENTS : RECENT DEVELOPMENTS Huge investments in R&D Constant focus by Government Medical Tourism The benefits of health Insurance is availed by just 30-40 million Indians which is expected to rise to 160 million by 2010 Healthcare BPO is also growing fast. The services include medical billing, disease coding, forms processing and claims adjudication Increasing urbanization, rising health conscious attitude, higher life expectancy