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. At the outset of its independence, she pursued socialist policies and programs. These are now changing in favor of free market principles. Waves of large scale liberalization of various sectors of the economy, privatization and globalization are stirring every part of the economy. The Indian economy ranks fifteenth in the world with a Gross National Product (GNP) equivalent to US$ 450 billion.
The personal health sector is one such part of Indian economy that is witnessing sea changes. The country is now negotiating with an epidemiological transition wherein infectious diseases causing adult morbidity and mortality are disappearing or have already been eradicated. Noninfectious diseases are however, assuming menacing proportions. These include coronary heart diseases, diabetes, hypertension and neurological disorders. The transition has a lot to do the socio-economic changes in India in the last two decades. The World Bank Health Sectoral Priority Review projects a doubling of cardio-vascular disease mortality rate in India between 1985 and 2015.
Reflecting the transition, the Indian Ministry of Health and Family Welfare- the prime policy mover for Indian healthcare sector, has begun to stress on the preventive, primitive, public health and rehabilitation aspects of health care. It also underlined the need of establishing comprehensive healthcare services to reach the population in all areas of the country through inviting and integrating private participation in funding healthcare at the secondary and tertiary level. During the last two decades, state spending on healthcare was overtaken by the private spending. In 1987, the governmental share if healthcare funding was 1.6% out of a total of 4.3% of GDP spent on healthcare. In 1990, the government's share declined to 1.3%, while the private sector share increased to 4.7%. This trend of declining governmental spending will only gain further momentum. The states are to focus on primary healthcare, leaving the secondary and tertiary levels of healthcare to the private sector.
Thus, India's private hospitals are in for a rapid rise both in terms of volume and sophistication. A principle mode of growth has been though corporatization. The Chennai based Apollo Hospitals pioneered this new avatar of Indian hospitals in the early 80's. Many family business houses have set-up hospitals or lent their names in order to inject a public confidence in their hospitals. A few pharmaceutical companies like Wockhardt and Max India, have opened hospitals as they leverage on their core competence. Hospitals, nursing homes and healthcare centers require ever increasing capital investments in real-estate and medical infrastructure.
All this contributes to the growth of the healthcare sector in India and for more medical facilities in private sector. sweeping reforms are underway in respect of insurance sector especially in the health insurance. are covered under Mediclaim. Currently in India. With nuclear families on the rise. India s healthcare industry is worth US$17 billion (a recent estimate of the Confederation of Indian Industries. A majority of private hospitals are expensive for a normal middle class family. As a further acceleration. GNRC Hospitals (Northeast) . only 2 million people (0. In India. Finally.The corporatization and entry of private entrepreneurs help them access equity markets and public funding to fund such projects. The rise of literacy rate. Foreign Direct Investments (FDI) is allowed in this sector with automatic approval up to 51% by way of foreign investment in equity. the bread-earner of the family and indeed every member of the family now access regular health check-ups. Hospitals in India are now recognized as industry enabling the banks and financial institutions to fund hospital projects. The private Indian healthcare sector has the following major corporate players: - Apollo Group of Hospitals Escorts Fortis Healthcare Max India Wockhardt Hospitals Ltd. whereas in developed nations like USA about 75 % of the total population are covered under one or another insurance scheme. 60% of the total health expenditure comes from self paid category as against government s contribution of 25-30%. New Delhi) and is expected to show a strong growth (over 13% by an industry estimate) for the present decade. With demand exceeding supply. Health insurance will make healthcare affordable to a large number of people..2 % of total population of 1 billion). higher levels of income and increasing awareness through deeper penetration of media. approx. bring Indian consumer closer to quality healthcare. the healthcare customer is changing qualitatively.
In spite of the reform sweeping the health care sector in general. Share-holding. each corporate hospital has formulated its differentiated marketing strategy and business development plans to benefit from the opportunities and to relate better with their customers. it makes it less than fair. - There is rampant revenue sharing among the general physicians at the primary health care levels and the specialist at the secondary and the tertiary levels. . The following are the common highlights of marketing strategies of Indian hospitals: - Most private hospitals have invited eminent industrialists. celebrities and social personalities to their governing and policy making board. The situation does not much differ even if the referring physician is working in an institutional customer with whom. attract patients and to generate funds though deregulated marketing. especially to the referral doctors. offering lower rates and receiving committed business from these key clients. Cuts as they are termed as. creates a sense of ownership and forges partnership among the intermediaries. generously to the referring physicians. bonds the two. It impacts their efforts to survive. the hospitals have already a contract of assured business. Their presence assures the general customers. are demanded -and offered. - Most private hospitals segment the healthcare market carefully into institutional customers and individual customers. these industrialists on governing board bring business to the hospitals and offer patronage of their own firms. the Indian hospitals are constrained by several government regulations. - Hospitals assure attractive discounts on hospital billing of their referral doctors and their family. When millions of rupees in technology and infrastructure are invested in a hospital. - Indian private hospitals enter into longer term contracts with institutional customers assuring their services. however small. To begin with. they contend. - A few private hospitals offer token equity shares to their patrons. Indian hospitals are not allowed to advertise the way a telecom service marketer or a consumer goods marketer would. Still. At the same time.
is on the rise. - Customer focus and customer service are the new tools of hospital marketing. - Seminars.- Continuous knowledge enhancement of the doctors and frontline staff is now a priority and key to the survival and reputation of hospitals in India. - Technical upgradation and introduction of information technology is on the rise in Indian hospitals. . Instead of the traditional segmentation vases. but it is also helping improve customer service. mobile health van and sponsored health camps are organized to not only attract new customers but also to create a feel-good environment in their served markets. - Segmentation is done more precisely as well as creatively. - Co-branding . - Loyalty based rewards are in operation in many hospitals. like geographic and demographic. A large portion of hospital outlay is now earmarked for staff (doctors as well as supporting staff) training. workshops and technical presentations are organized on technical issues as well as on higher customer orientation and customer service. IT is in use not only for attracting customers from non-neighboring locations.sharing hospital brand credits and marketing with other wellknown brands in services and goods. research and re-education. - Special niches are identified and filled in by the hospitals for smaller size customer clusters or needs. - Hospital ambience is (re)engineered at par with those of hotel. - Free health check-ups at hospitals. Indian private hospitals seek customers of desired psychographic nature irrespective of where they reside.
Since pricing is the main tool of revenue generation in a subsidy-free private hospital. approximately. the hospitals in India still need to wait for a varying length of time to break even. 100 bedded hospital).the fifth source. from selling medicines on their sites. The second source of revenue to the hospitals is from out patient departments (OPDs). The visiting doctors pay up a certain percentage (approx. the more profitable the hospital is. cosmetic surgery. 80% of the revenue from an admitted patient is earned within the first 72 hours of admission. shorter the duration of the admittance of patients. With all these sources of revenue combined. However. Large hospitals in India (with approximately 500 bed capacity) take about 9-10 years to break whereas super-specialty hospitals (with about 100 beds) take about 6-7 years to break even. Indian hospitals closely correspond to their American counterparts. In terms of overall revenue generation pattern. 15%) of their billings to the hospital revenues. The first source of revenue to the hospitals is from the patients admitted to the hospital.Pricing and Revenue Pattern in Indian Hospitals In such a changing healthcare environment of India. The latter is important because the state governments. . which is the fourth major source of revenue. A margin of 15-20% is earned on from this source easily. Revenue from the specialized services like operations and surgeries is the third major source of revenue for a hospital. The Cardiac Care Units of a specialized hospital (CCUs) earn more than the general room charges. Thus. Virtually every hospital is on notice to be proactive in pricing and performance driven in generating revenue. it is worthwhile to map how an Indian hospital earns. healthinsurance cover providers. specialized hospitals even smaller in size (e.g. The patients traffic rate is higher in the Indian hospitals especially as the walk-in patients (patients without having a prior appointment). Most hospitals are reducing permanently employed in-house doctors and inviting a greater number of visiting doctors and experts. neurology etc earn as high as a 500 bed general hospital may. it is important for a private corporate hospital to remember how its pricing compares to competitors and how does it meet the expected market norms. In fact. A few hospitals in India generate substantial revenues. public action groups and media take an active interest in the hospital performance and its pricing strategies. In fact a few hospitals make it mandatory for the patients to buy medicines from the hospital s chemist shop on the ground that the medicine is genuine and easily available. and catering to specific diseases like cardiology. interestingly.
What is new to the Indian hospitals is the fact that the pricing can be an instrument of relations building as well. Costs are relatively fixed. The long-term progress. Few of the benefits that cannot be overlooked are: y y Similar existing resources utilised for more surgeries. Today. In a maze of intricate process in a hospital. hospitals have argued that the rate of increase in hospital costs is faster than the rate of increase in hospital revenues. Therefore. Often. It has now almost become mandatory for all healthcare-related conferences and publications to feature cost pricing prominently. quality of care invariably creeps in as the antagonist. This is a genuine concern for hospitals that do not employ a clear pricing strategy. The patient's hospital expense gets reduced as he is not required to stay over at the hospital. it is important to keep the process simple and uncomplicated. affordability of the community and the need for generation reserve funds. When one speaks about pricing strategies. demand for the product in the community. provided there is no compromise in the various components that go into costs and pricing is dependent on a variety of factors like competition. and sustenance and growth of any hospital depend on sound pricing strategies. Healthcare pricing strategy is the most critical component of managing hospitals irrespective of whether they are for-profit or not-for-profit. This provides an opportunity to have a greater bed turnover and more revenue . where there is no compromise. We need to evolve from this deadlock and deal with quality as a component of healthcare pricing. the beginning of any pricing process is to understand the cost of the product and the components included in the costs needs to be all inclusive.Pricing of their services are crucial to their survival and for earning surplus to plough back for modernization and upgradation. Day-care Procedures These have become extremely popular as they have a favorable impact both on consumers and hospitals. Costing and financial optimisation have today evolved into a focus area for all senior healthcare executives. GNRC Guwahati hospital described from now. the most flexible component is pricing and leveraging this flexibility is the secret behind financial management of hospitals. financial transparency has become the talk of the town. While a variety of factors influence pricing strategies. another wind begins to stir. A variety of innovative concepts are being adopted in pricing healthcare strategies and the most widely used strategies are briefly described here. realized it early and worked towards it As soon as the dust settles from one storm in healthcare. In the current turbulent healthcare environment. we tend miss out on allocating indirect costs to a product/service and this has a major impact on profitability.
While a number of procedures are being offered as packages.y for the hospital. less nosocomial infections and early recovery in home environment with the family. surgeons and especially patients greatly appreciate as the costs incurred are lower. there are some who would argue that this is not necessarily the best pricing strategy. Traditional pricing formula: Cost + Profit = Price Delivering value : (Access + excellence + efficiency + outcome) cost Hospitals should therefore start looking at delivering value and move away from working on traditional pricing strategies. there is a paradigm shift in the way pricing strategies are viewed. efficiency and outcome minus the cost. stability and transparency. other benefits include decompression of busy hospital beds. This has become the mainstay of developed nations working on reimbursement for services. Apart from cost containment. Packaging Pakaging of various services is another trend that is on the rise. there is less disruption of personal lives. Thus. overwhelming majority of services are yet to be offered as packages. packaging of services will increase further. With the increase in health insurance packaging. Value is defined as the sum of access. When one talks about delivering value. Delivering Value A major component of pricing strategy is delivering value. business organisations. . excellence. but in India it is still in the evolutionary stage. While packaging brings in some form of uniformity. This is a benefit that all stakeholders like insurance companies. When value is delivered. the absolute price of a service becomes less important and this is a unique way of working on pricing healthcare strategies.
as most hospitals have done. And why is it that costing is an exercise avoided by hospitals? Says Dr Vinay Kothari. For all other procedures. he claims. The mark-up over cost should factor in things like urgency and seriousness of treatments. lumpsum (package) prices should be fixed for at least 400 procedures. the actual billed amount is higher than the original estimate. or activity is introduced. at best. he explains. the hospital gives an estimate of cost and 90 per cent of the time. Price is increased on any package. Concurs Bagaria. Hospic. CEO. Costing should be done when a new procedure. In the absence of an accreditation system. Asian Health Services. is slowly gaining momentum. The issue of pricing for healthcare deliverables has been a contentious issue for long in India where consumers pay out of pocket. without doing actual profit and loss analysis on each item or procedure. Hospital rates should be arrived at by logical process of first making a detailed study of all the costs involved. Experts are now questioning the logic of market-based pricing structure. According to Bagaria. there is a lack of cost accountants with knowledge on the hospital set up. In case of existing services. MD. Ideally prices should be fixed based on a cost-plus formula. CEO. doctors & other staff. and not just for CABG and laparoscopic cholecystectomy. Some hospitals a few decades back must have fixed prices and others copied it. Healthcare experts and consultants are now questioning the mechanism of rate structuring followed by hospitals. he hasn t come across any Indian hospital which has packages for more than 8-10 procedures. frequency.Hospitals need to look into the pricing strategy. which was a strict no-no in the private healthcare sector. etc. 10 to 20 per cent is increased randomly on basis of expenses. According to Dr Kothari. Bangalore. Prices are revised on a percentage basis every year. This department is a cost centre for the hospital. which is probably why they do not want to have one. However. . New hospitals get price lists of existing hospitals and mark-up or mark-down is arrived at based on how they want to position the brand. the debate on pricing. says Dr K C Ojha. Another problem is the lack of expertise that plagues the hospital industry. prices tend to be fixed arbitrarily with wide disparity within a particular intervention may it be diagnostic or therapeutic. he adds. Also. Hospitals need to have a department that continuously monitors cost. which includes indexed time cost of physicians. volumes. Hosmac. Experts feel that providers must do costing of all new services and review the fee for existing ones periodically. The yearly revisions are non-existent in most hospitals and there is no logic to the existing pricing structure. They are also of the opinion that activity-based costing (ABC) should replace market-based costing. equipment. says Amit Bagaria.
So the issue is not always about the patient being over charged it is also about irrational pricing. which are the revenue centres and where they should lay thrust to invest. says: Traditional cost accounting methods pool all indirect costs and then allocate them to the various services in proportion to service direct costs. the charges billed to the patient were less than the actual input costs incurred by the hospital in question. And some. when their volumes increase.Asian Health services and Hosmac through their studies have shown that services are priced much less than they should have been. Dr Ashok Bhatkhande. and should not. But the cost structure is so defective. puts Dr Kothari. treatment. he adds. etc. says Bagaria. This approach tends to overestimate the unit cost of high volume services and underestimate low-volume services. that major procedures were cross-subsidizing minor ones. ABC will identify the important services and how much revenue they would generate by charting a servicewise revenue list. ABC solves this problem by estimating the cost of the work activity that consume resources and by linking these costs to the services that are provided. So it is the marketing strategy to underprice or charge high simply to maintain the hospital image. revenue is balanced by varying the price depending on the volumes expected. that it is difficult to rectify. offer subsidized rates for primary/secondary care treatment. . but insurance companies certainly can. this was true only of minor procedures. like Bagaria see light at the end of the tunnel. A hospital which offers tertiary care does not need to. He explains that to fix a price. With ABC still a long shot. is of the view that though costing is done. the cost of services may be misinterpreted. in certain cases. especially minor procedures. And even though the authors say that ABC may be difficult to implement. it is still feasible in a developing country. But he agrees that review is not performed for existing services. costing is done. Costing becomes important because hospitals need to know which are cost centres. A report by the US-aided Quality Assurance Project on Can ABC work in developing countries? with Peruvian Healthcare System as the case. Although activity-based costing is desirable. We can t change the system. The next question is if hospitals should carry out activity-based costing. margin is decided and then finally. So. Says Dr Bhatkhande. he hopes. In most of the cases. at least methodical pricing should take place. and not for major surgeries.. When indirect costs are large. even in the US. It is a myth that costing may lead to cutting down the price. pricing strategy is not always right. Breach Candy Hospital. Experts feel that ABC should be done and it will pay off well. AHS has done quite a few studies that have revealed that. market price is checked. director administration. often the case in healthcare. There is no good reason for doing this. Emergency Dept. the conclusion was. Says Bagaria. says Dr Ojha. it is currently not being done.
government hospitals & network have only covered the 20% of the total healthcare expenses incurred in India. Such baseless system promotes unethical practice and heavily affects the course of treatment chosen by the patient. But beyond such standardized practice there is hardly any standards for charging by any common man as there is no defined guidelines on the hospital to charge for services.Standardizing the Hospital Service Pricing. . such system not only makes it difficult for any patient to be sure of ethical price charged it also makes difficult for hospitals to have a standardized charging in their system & thus it just on the mercy of the hospital that how much they may charge for any treatment. I hope that government (state government) should take initiative to fix the maximum price applicable for any procedure & service which will not only control the unethical practice but will also boost the necessary confidence in the patient to undertake treatment in any healthcare system. But such steps by the government hardly effect the net effect of out of the pocket expenses incurred by an average man in India . Few of the medical items like essential drugs are under government control which means that most of the lives saving drugs have been conserved by the government & all such drugs are available at a nominal price fixed by the government. Government funded schemes like CGHS/ECHS have a standard schedule of charges fixed by the central government for different categories of cities in India & such rate list are applicable for any expenses incurred on beneficiary.
but also in financial structures and in transportation and communication networks. insurance. Germany. as well as other services. their place has been taken by service-based enterprise. UK. entertainment. Japan. health and fitness clubs. Without the existence of two major service sectors namely banking services and transportation. Economies of countries such as the USA. . With the individuals spending greater portion of their income in transport. the economic benefits of large-scale production could never have been realized.Marketing Mix for Hospital Services in the Globalized Era ABSTRACT The industrial revolution of the eighteenth century involved changes not only in manufacturing. investment and legal services on the other hand indicated the inclination for the service sector to expand. contribution in GDP and more consumption than manufactured goods. there has been a steady decline in the traditional manufacturing goods. Sweden etc. and the growing complexity of banking. leisure and communication service and the line on one hand. private hospitals. New York). Percentage of GDP Country USA JAPAN UK Australia Canada India Manufacturing 21 29 32 22 24 29 Services 74 59 69 72 70 47 Percentage of Environment in service sector 80 60 77 75 79 60 (Source: 1998 Statistical year book. Desires to live long have resulted in special health care services like nursing homes. The current list of Fortune 500 companies contains more service companies and fewer manufacturers than in previous decades. Services account for a higher percentage of US GDP than 20 years ago.N. Since Second World War. Department of International Economic and Social Affairs. There is an endless list but a general categorization of factors contributing towards the growth of services. Canada. The developed economies also called as service economies reveal that the service sector accounts for greater employment.. U. have moved from being goods dominated to services dominated. This shift has been so important that some refer it as the 'second industrial revolution'.
4. HOSPITAL MARKETING MIX PRODUCT A product is a set of attributes assembled in an identifiable form. Mallaya Hospital. Ambulance services Hi-tech ambulances linked by state-of-the-art telecommunications are fully equipped with doctors that are available to render medical attention and assistance in case of emergencies at the patient's doorstep. which have to be completed on daily basis. Pharmacy services Most of the hospitals also have a pharmacy which is open 24 hours. which allows the staff at all levels of the hospital to follow simple procedures. The hospitals have state-of-the-art ambulances. The product is the central component of any marketing mix. Plastic surgery and so on.INTRODUCTION Marketing has grown in importance for hospitals. presentation and management of the product which is to be offered to the market place. Orthopedics. core services and peripherals. A world class hospital is a multi-disciplinary super speciality medical centre of international standards. There is hi-tech telecommunication available to a patient in an emergency at any given time. Bangalore. managing service offering and developing service offering. Ex. The CCU's on Wheels under supervision by medical and para-medical staff. 2. they offer a wide range of facilities for instance. looking to strengthen their position in a increasingly competitive healthcare market place. The product component of the marketing mix deals with a variety of issues relating to development. ISO 9002 quality assurance is a structured and user friendly set of systems. Neurology. They try for total health care preventive and curative. It covers issues such as service package. Oncology. but also patients from other hospitals who require emergency drugs. It caters to the needs not only of the inpatients and outpatients. Hospitals today offer the following services: 1. 3. which make the most complex tasks easy and efficient. It frees the senior management of everyday stress in observing and monitoring tasks. . Some hospitals have even obtained ISO 9002 certification. Most hospitals in developing counties like India have grown to a truly words class stature over the years. Most hospitals today are well equipped with the most advanced diagnostic and treatment facilities. that can handle any kind of ailment. Emergency services Emergency services and care at most of the hospitals is unique and advanced. Diagnostic services Modern Hospitals are multi-speiality and multi-disciplinary.
which attends to the accident or emergency cases. Price usually depends on treatment prescribed by the respective consultants and the facilities offered to the patient. Before fixing prices. casuality services etc. The amount extends on the category of room and the treatment or surgical procedure planned. an initial deposit will be collected at the inpatient billing counter. Apart from the above mentioned services. Master health check up 2. Core level it comprises of the basic treatment facilities and services offered by the hospital like diagnostic services. As a service is intangible. government controls are also taken into consideration. Various categories of rooms. 2. Generally. hospital also offers "Health Diagnosis Programme" which is a complete.. The pricing strategy is formulated after consulting the concerned heads of department. PRICE It is one of the most prominent elements in the marketing mix. Augmented level it comprises of dress code for staff. Causality services Causality service includes a 24 hrs. services of renowned consultants. the service offering in a hospital comprises of the following levels: 1. The health diagnosis programme comprises of the following: 1. Prices of various facilities revised every year depending on the change in technology. On admission. .5. it is very hard for deciding the price of the particular service offered. ranging from the general ward which attends to the needs of the lower classes to the deluxe suite which attends to the needs of the middle and upper classes are available. causality department. emergency services. Expected level it comprises of cleanliness and hygiene levels maintained in the hospital. professionals. Diabetics health check ups etc. periodic health check up offered for busy executives. Executive Health check up 3. business persons and so on. 3. use of state of art technology. Pricing strategy adopted does not depend on the price offered by competitors. air conditioning of the hospital. Price charged must be able to target customers and it should co-ordinate with other elements of the marketing mix. comprehensive.
This element in the marketing mix leads to the identification of a suitable location. a hospital may continuously introduce different health services like the accupressure clinic. Hospitals generally advertise in health and fitness magazines. . A hospital must be ideally located and must be easily accessible to all. they rely a lot on a favourable word of mouth. used or received. Promotion includes advertising. (Corporate clients) Hospitals conduct camps in rural areas to give medical check ups at a reasonable price so that the rural people approach the hospital again in the future. Factors influencing the placing decision are market size and structure by geographical regions.A hospital does not believe in profit maximization. PROMOTION Promotion function of any service organization involves the transmission of message to present. location of potentially attractive consumer segments. Availability refers to the extent to which a service is obtainable or capable of being purchased. Customers are a source of influencing other customers by word of mouth. The two major issues considered regarding the decision of a place are accessibility and availability of the service to customers. Hospitals do not normally undertake aggressive promotion. To crease the clientele. PEOPLE The People component reflects the important role played by individuals in the provision of services. who gets the benefit of the service. Customers need to be made aware of the existence of the service offered. local infrastructure. it aims at providing quality service for its customers at reasonable price. sales promotion and publicity. Service personnel play an important role in an organization which offers service. The behaviour and attitude of the personnel offering service will influence the customer's overall perception of the service. People are also an important element in the marketing mix. good road access facilities and public transportation network. used and received. personal selling. PLACE It refers to contact point between the customer and the service provider. number and types of competitors in the region. master health programmes and diabetes health checkups apart from annual health checkups offered to different companies. They also sponsor frequent visits to the spastic society. Accessibility refers to the ease and convenience with which a service can be purchased. etc. old age homes. past and potential customers.
It is necessary that the staff in hospital are trained to offer quality patient care with human touch using state of the art technology. o Use of latest technology. Offering regular on-job training of employees to ensure continuous improvement in health care. PROCESS Process is a set of activities that take an input. free from any kind of tension. it is very important that the staff of the hospital is friendly and comforting. The Joining Phase It includes the following: . There should be regular liaison with them at all times. Knowing what the employees want is very important. the job of the staff becomes much easier. Therefore. whereas in a hospital. where the clientele is happy. There are many other ways to motivate the employees. convert it and add value to the input and finally create an output. which sets a standard for action to take place and to implement the service. always wearing a smile. o Utilizing services of professional competent medical consultants. In a hotel. Warm ambiences with efficient and cheerful staff help make the experience of the public a memorable one. The objective of offering quality service to the patients can be attained by: Motivating employees to be efficient. 1. dedicated and loyal to the organization. In a hospital. There should be active participation of the employees in the activities of the hospital. Concessions should be given to the employee's near ones. the process is divided into three phases. o o Motivation is not necessarily by giving high salaries. depressed and an agitated lot. Processes are designed by blue a print. Process has only recently been given much attention in the service sector although it has been the subject to study in manufacturing for many years. the staff has to cater to the needs of sick.
The detachment Phase It includes the following: * Discharge of the patient a patient can be discharged from the hospital on the advice of the consultant * Payment after the patient is discharged. valued and considered and many times are very useful for improving the services of the hospital. the patient is requested to fill an evaluation form. * Registration where a patient has to make an initial deposit at the in-patient billing counter after which a file is opened in the patient's name to know the patient's medical history. the bill will be paid at the billing counter. Patients' suggestions are always welcomed. Treatment when the illness is treated with proper medication or surgery and so on. 3. Feedback At this stage. which assists the hospital authorities to know the level of satisfaction derived by the patient.* The arrival of the patient. General Process Organization in a Hospital . 4. the medication to be taken. The Intensive consumption Phase It includes the following: Diagnosis where the consultant diagnoses the illness by making the patients undergo various tests. when to consult him again in the future and so on. Information about further actions the consultant will instruct the patient regarding the diet to be followed. 2.
Physical evidence . This can be developed through corporate relation programmes. warm and comforting because the clientele that goes to the hospital is usually disturbed or unhappy. In a way. Special care should be taken to maintain hygienic. cleanliness and whole hospital must be well lit. It makes a huge impact on the customer. The staff follows a dress code to show professionalism and to maintain discipline. Physical evidence offers customers means of evaluating the service. it is noticed that each department serves the needs of another department. Each department is an "internal customer" or the other departments. Ventilation is taken care of by air-conditioning. Only when each unit of the hospital understands who their customers are and what their needs are. the purchase department serves the needs of the stores. the world-over in many organizations that have used this concept. However. the billing department serves of the finance department and so on. for example. In a superficial level. The entire hospital requires to be centrally air-conditioned with good lighting. Physical evidence plays an important role in hospital services. will the hospital develop basis for giving the best service in the most efficient way to the patient. Modern hospitals need to create a good ambience. This is taken care of by the housekeeping department. Corporate image plays in important role in terms of physical evidence.Within the hospital. The staff is trained to be understanding. PHYSICAL EVIDENCE It is the environment in which the service is delivered with physical or tangible commodities and where the firm and the customer interact. A hospital has to keep in mind both the aspects of physical evidence that is essential and peripheral evidence. It is necessary for a hospital to be well organized and segregated into different departments. it has found that this kind of a customer-supplier relationship helps to offer an important system of checks and balances and gives the organization a more focused customer orientation. All the doctors should be offered with a well-equipped cabin. while at the same time it might be a supplier to another department. each department or unit should consider itself to be a service provider serving the needs of the customer department. each department is a customer to another department. So in a way. it each department is looked. Right from the reception one finds very cordial and comforting staff. The ambience plays an important role because when a patient walks into the hospital he immediately forms an opinion about the hospital. it may seem as if each department is working as an independent unit rather than a team.
In the services marketing. promotes.particularly plays an important role in the hospital where the patients are already depressed or traumatized and a good atmosphere could make all the difference. The applications of marketing principles in the services sector are the main things in the services marketing. Marketing the service is meant marketing something intangible. It is the managerial process of managing the service. they buy the time. CONCLUSION Marketing is a function by which a marketer plans. It is like marketing a promise. knowledge. skill or resources. . the providers are supposed to influence and satisfy the users. When people buy services offered by a service provider in a true sense. and delivers goods and services to the customers.
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