Important Aspects to critically monitor by a Healthcare start-up

 Categorize you Units in to section

1. Mature Unit (EBIDTA Positive)
2. Un-Mature Unit (EBIDTA Negative)
 Plan your Journey
1. Short terms Outcomes /Objectives
2. Long term Outcomes / Objectives
 Key elements to observe
1. Business Development
2. Consumer Experience/Relation (B2B, B2C)
3. Financial Matrix
 Typical Expenditure Matrix of Mature Cardiology Unit

Top line
Fees to Doctors and consultants 26%
Employee salary and benefits 8%
Medical consumables 30%
Operative expenses (Fixed) 4%
Operative expenses (Variable) 9%
Total Expenditure (Bottom line) 78 %
Gross profit / Loss 22%

Payer Mix

Payer Mixtrend

Ayushman
Self Paying Bharat
39% 34%

Direct corporates
1%

Insurance &
Cashless
26%
 Important KPIs for Business Development

 Business Trend : a ) demographic trends b) B2B business pattern

 Service line performance (Activities, Marketing Budget) according to business volume.

% of
Income
from
Specialities Specialities
Cardiology 72%
Cardiac Surgery 13%
General Surgery 3%
Gastro procedure 2%
Ortho surgery 1%
Critical care & General
Medicine 8%
Nephrology 0%

 B2B Partnerships: Current status, Look for improvements, add new ones.
 Business Conversation out of Activities: Short term and long term conversations.
 Setting up and observing objectives of each Marketing tool.
 Enlisting PAC value

Patient Acquisition
Cost (per New Patient) 466.67
Total New Foot falls
(OPD) 300.00
B2B marketing
1 Expenses 80,000.00
B2C marketing
2 Expenses 25,000.00

3 Online Promotion 10,000.00

Branding Marketing
4 Agency fees 15,000.00
Other marketing
5 Expenditure 10,000.00

Total Expense 1,40,000.00

Cash Flow Metrics

 Cash flow Statement
Rs.
1 Topline of your Institute 100
2 Bottom line 75
Profit 25
3 Cash Inome 40
4 Credit Income 60
Cashflow -35

Budget vs. Actual Analysis

Variance analysis comparing budgeted figures to actual performance.

Explanation of significant variances and corrective actions taken.

Important KPIs to remember In Hospital Business

1. Days in Accounts Receivable (AR)

Debtors Aging Analysis

2. Average Length of Stay-

 Package Bills- Low ALOS (<3.5)

 Open Bills- High ALOS (>3.5)

3. Bed Occupancy Ratio

4. Average Revenue per occupied Bed (ARPOB)

5. Operating Margin (EBIDTA)

6. Average Revenue Per Procedure

7. Patient Satisfaction index. (PSI)

8. Patient Trust Index (PTI)

Most compromising element of Indian Healthcare Industry a

 On the Trust index, the report that is based on data collated over the last
one year from 200,000 subscribers of GOQii both male and female found
that 92.3% don't trust the healthcare system in India including doctors,
hospitals, Pharma companies, Insurance companies, Diagnostic labs,
etc.

The changes people would like to see in the healthcare system

 Transparency

Ombudsman for medical practice

Cheaper healthcare facilities including medicines

Price capping for hospital charges

9. Online reputation Score (ORS)

10. TAM- Total addressable market

11. GAGR