Hospital sector in service management

Prof. V.B.Shah Institute of

Management

Subject : Service

Management

Topic : About Hospital

Sector

Submit to : Ms.Tanvi

Bhalala

TYBBA (Div-2) Group Members

Roll no. Name

226 Nasit Janak

237 Patel Vikas

238 Patel Vinay

239 Pathak Denish

252 Savani Jay

254 Shah Keval

Index

1.Overview of hospital industry

2. Outlook of hospital industry

3. Major hospitals in India

4.Emerging trend in health care

5. 7 p’s of Hospital industry

About Hospital Sector

Overview of Hospital Industry

Healthcare is a big issue

among urban Indians. Earlier, an Indian used to spend hardly on his or her healthcare. However, now there is an awareness about health related issues and problems. Not just men but women are equally concerned about their health and issues related to it.

In past decade, there have been a number of healthcare companies that have emerged in the country. Today, if you want to go under a surgery then these hospitals are well equipped to perform any kind of surgery.

Hence, people are avoiding going abroad and saving money. A surgery in US could cost you $50,000 to $100,000 however in India you could get it done only in $10,000 to $15,000.

The Indian healthcare sector comprises the sub-sectors of hospitals, medical infrastructure, medical devices, clinical trials, outsourcing, telemedicine, health insurance and medical equipment. India presently has 0.5 million doctors, 0.9 million nurses and around 1.37 million beds, and has the highest number of medical and nursing colleges, at 303 and 3,904, respectively. In addition, the cost of medical treatment in India is one-tenth that compared to costs in the US and Europe.

Outlook of Hospital Industry

The main areas where a number of market opportunities exist for both domestic and foreign players in the Indian healthcare domain include medical tourism, healthcare insurance, telemedicine and medical equipment.

Some of the advantages and opportunity areas for further growth of the sector are:

Rising medical tourism:

The main factors contributing to rising medical tourism in India are presence of a well-educated, English-speaking medical staff, as well as state-of-the art private hospitals and diagnostic facilities.

Growing economy:

With a growing middle class, and rising health awareness and purchasing power, the healthcare insurance sector is poised for strong growth in coming years in India.

Telemedicine:

Growth in the telemedicine sub-sector is taking place due to the need for specialist doctors in rural areas, as most of them live in urban or semi-urban centers of India. Rural areas, roughly with a population of 700 million, can be provided healthcare facilities through telemedicine, with remote diagnosis, and monitoring and treatment of patients via videoconferencing.

Healthcare infrastructure:Growth in Indian healthcare infrastructure is accompanied by strong demand for medical equipment such as x-ray machines, CT scanners and electrocardiographs, highlighting an opportunity for global players making quality products in this space.

Major Hospitals in india

1. All India Institute of Medical sciences (Delhi)

2. Apollo Hospitals (New Delhi)

3. Wockhardt Ltd (Mumbai)

4. Fortis Hospitals (Noida, UP)

5. TATA Memorial Hospital (Mumbai)

6. Christian Medical College (Vellore)

7. Post Graduate Institute of Medical Education and Research.

(PGIMER)

8. Lilavati Hospital (Mumbai)

9. Bombay Hospital (Mumbai)

10.Sri Ramachandra Medical College and Research Institute

(Tamil Nadu)

11.Medanta The Medicity (Gurgaon)

12.amrita institute of medical sciences (Kerala)

13.MIOT hospitals (Tamil nadu)

14.Artemis Hospital (Gurgaon)

15.The National Institute of Mental Health and Neuro

Sciences (NIMHANS)

Emerging trends in Healthcare

Dual Disease Burden:

Urban India is now on the threshold of becoming the disease capital of the world and facing an increased incidence of Lifestyle related diseases such as cardiovascular diseases, diabetes, cancer, etc. At the same time, the Urban Poor and Rural India are struggling with Communicable Diseases such as tuberculosis, typhoid, dysentery etc. Rural India is also seeing a higher occurrence of Non-Communicable Life-style related diseases.

Lack of Infrastructure and Manpower:

Accessibility to healthcare services is extremely limited to many rural areas of the country. In addition, existing healthcare infrastructure is unplanned and is irregularly distributed. Further, there is a severe lack of trained doctors and nurses to service the needs of the large Indian populous.

Rise in disposable income:

Households in the above INR 200,000 per annum bracket can benefit from an increase in disposable income from 14 percent in 2009-2010E to 26 percent in 2014-2015P making healthcare more affordable.

Medical Tourism:

India emerging as a major medical tourist destination with medical tourism market. 

Drivers of growth for the Hospital Sector:

Increase in Population: Increase in Population: Expected increase in population from about 1.1 billion in 2009-2010 to 1.4 billion by 2026.

Shift in demographics:

60 percent of the population in the younger age bracket and an expectedincrease of geriatric population from current 96 million to around 168 million by 2026.

Increase in lifestyle-related diseases:

There is likely to be a marked increase in the incidence of lifestyle-related diseases, such as cardiovascular, oncology and diabetes, when compared to the communicable and infectious diseases

Rising Literacy:

Growing general awareness, patient preferences and better utilisation ofinstitutionalised care as a result of increase in literacy rates.

7p’s Hospital Industry

People

The patients, clients, customers, prospective patients, providers, staff, management – everyone – involved in the healthcare organization, facility, or practice. Surprisingly, this heading wasn’t one of the four original Marketing Ps. (What were they thinking?) Above all else, healthcare is a people business—so it’s first on our list.

The people who deliver a service are a significant ingredient in the product itself. Consumers evaluate service and satisfaction based on perceptions and personal interactions. A patient doesn’t have much insight to a physician’s clinical skills, but they will know if they are pleased based on dealt with them as a person. Your reputation and your brand are not yours alone—it’s a matter of teamwork.

The amount paid in exchange for the value received.

Price must be competitive and lead to profit, but may vary within promotional and/or bundle purchase options.

Price is a toughie in the healthcare industry. Sometimes there are few or no options: Price is what it is, or maybe it’s paid through an individual’s insurance. Elective care or cosmetic procedures, of course, are a different animal. Anywhere in this spectrum, price is also a function of value, competition in the marketplace, and affordability. Take a serious look at those areas where there is flexibility, and be open to adjusting prices.

Price

Presenting the correct product (goods and/or services)

with values that meet or exceed the needs and expectations of the target market.

When was the last time you took an unbiased and critical look at yourself—products, service, value proposition, facility—the works? For a toothpaste company, the “product” is a box on the store shelf. But the product for service organizations is usually defined in terms of personal happiness: less tangible than a pretty box and not easily quantified.

The primary determinant is in knowing that customers perceive and receive value and satisfaction by way of your healthcare practice or organization.

Product

For this list, it’s convenient that Promotion begins with a P, but some healthcare professionals react negatively to the “retail” or “blue-light-special” connotation. A better label for this category is communications, meaning all the direct and indirect ways of expressing yourself (your practice, your brand, your services) to those who need and want your services.

This includes both personal or direct interaction (one-to-one, inspiring referrals), and interacting with many (advertising, public relations, publicity). In all instances, this is done in a professional way. The objective is to critically examine how, where and when you let others know about what you can do for them. (And those in need want this information.)

This is also where you consider changes in the media that’s in play. A few years ago, nobody had a website. And a few moments ago, Social Media Marketing had yet to be invented. Some newspapers have disappeared or gone online only. Magazines and other publications, online and in print, adjust to capture audiences. 

Promotion:

PlacePresenting products or services to the

customer (patient, client, end-user) in the right place and at the right time.

The most obvious “place” is the office, facility, Surgery Center—where the product meets the user. In healthcare, the place for purchase decision is often separate from where and when product/service is delivered. Keep this spectrum in mind…a change in location can impact the decision to buy. And it’s likely that more than one “place” is involved when there are multiple providers in the practice and/or multiple offices.

(Importantly, place can also refer to your marketplace demographics, or even the world if you deliver services over the Internet.)

Packaging

What the customer perceives and experiences about you, your product/service—tangible and intangible—in every form of visual contact. (Sometimes “Physical” or “Physical Evidence.”)

This is not only the hands-on, physical container of a physical product…the definition is also experiential, and often more so for healthcare marketing. Look at this through the end-user’s window, and everything counts. Take a fresh look—as if for the first time—at the appearance of the physical office or location, the impression of your reception area, the look and feel of brochures and website, and even the appearance of staff.

Some doctors never walk through the front door of their own office. Try it. You might be surprised to see what patients are seeing as they form their first impressions. (First impressions take about 10 seconds to form…and you’ve only got one shot at it.)

Packaging can also refer to how you bundle services (think of a plastic surgeon offering a “mommy makeover” —lipo and tummy tuck—for moms who have finished having children).

Positioning

How your brand, product or service is perceived in the hearts and minds of customers and prospective customers.

Positioning means, “Why you?” Another toughie.

Think of positioning as what you would want people—both patients and prospective patients or customers—to say about you? Would they use the same words that are part of your marketing message? Acknowledged experts in positioning, authors Reis and Trout, say that what your customers think and say about you is an absolute critical success factor. And that saw cuts in both directions—positively and negatively.