CRM Practices& Interactions in Health care Industry
Submitted to:Ms. Supriti Agrawal
LecturerDepartment of Marketing
Submitted by:Garima Sharma (108H21)
Nirdosh Sawhney (108H31)
In Partial Fulfillment of Award of Master of Business Administration
AMITY BUSINESS SCHOOLAMITY UNIVERSITY UTTAR PRADESH
SECTOR 125, NOIDA - 201303, UTTAR PRADESH, INDIA 2009
What Is Customer Relationship Management?
CRM stands for Customer Relationship Management. It is a process or methodology used to
learn more about customers' needs and behaviors in order to
develop stronger relationships with them. There are many
technological components to CRM, but thinking about CRM in
primarily technological terms is a mistake. The more useful way
to think about CRM is as a process that will help bring together
lots of pieces of information about customers, sales, marketing
effectiveness, responsiveness and market trends.
CRM helps businesses use technology and human resources to gain insight into the
behavior of customers and the value of those customers.
Advantages of CRM
Provide better customer service
Increase customer revenues
Discover new customers
Cross sell/Up Sell products more effectively
Help sales staff close deals faster
Make call centers more efficient
Simplify marketing and sales processes
INTRODUCTION
Faced with mounting pressures to contain cost and mandates to adopt continuous quality
improvement process, the health care industry is actively engaged in relationship marketing and
partnering activities.
Customers relationship management (CRM) which has overriding significance for any business
is no less significant for hospital services (Salam, 2000). Hospitals are most important elements
in any health care delivery system. A hospital plays a major role in maintaining and restoring the
health of the people.
Care of the sick and injured, preventive health care, health research, and training of medical and
paramedical staff are general broad functions of a hospital. It involves to the outpatient and
inpatient hospital services and on many occasions emergency medical services. An important
resource in a hospital is a human resource. This should be particularly emphasized. This should
be particularly emphasized in the content of a hospital since relationship of medical staff plays
important role in treating patients - the hospital customers.
In health care, CRM practices are essentially patient - focused strategies that involves effective
management of hospital interface and interaction with patients. Effective CRM practices in a
hospital may mean providing services related information to a patient very quickly. Responding
to the patent appointment and an admission requests promptly, dealing with patient queries and
complaints expeditiously, exercising all kind s of flexibilities in serving patients to the patients.
LITERATURE REVIEW
The relevance of relationship marketing in health care has been widely recognized (Cassidy
1993; Dunn & Thomas 1994; Narduetal 1994; Macstrainc & Denning, Paul; 1986; Paul; 1988;
wagneretal (1994) discussed the relevance of relationship marketing programs, integrated
marketing communication strategy and data base marketing for developing a favorable image
leading to improved hospital performance. Based on Demming's principles of total quality,
Doyle and Bondrau (1989) advocated hospital supplier partnerships as a means to improve
productivity, to control cost and to improve quality of care. They suggest that long-term relations
with suppliers based on trust, service and effective coordination could lead to efficiency and
improved performance
Dunn & Thomas (1994) draws clear distinction between transaction selling and offering
partnership solution to customer problems and advocated partnering with customers with a
hierarchy of corporate buying - selling model.
Several marketing practices that attempt to establish, develop or maintain cooperation &
collaboration with customers & other marketing providers are included under the general rubric
of relationship marketing. This include after marketing activities (Voura 1992) one to one
marketing (Pepper & Rogers 1994) membership programs (including frequent buyer incentives)
cross - distribution arrangements, cross - selling co - production, co - branding, channel
partnership logistics sharing, special supply arrangements (including special sourcing and JIT
arrangements) business alliances, data base marketing etc., (Sheth & Parvatiyar 1995)
CRM IN HOSPITALs
It is the duty of the hospitals to make the patient and relatives understand that they are providing
a good treatment. These facts demand hospitals to have a well-planned Customer Relation
Management (CRM) programme.
The customer relationship programme in a hospital has two wings. One is the customer care
activity when the patient gets treatment in the hospital as an in-patient. The second is customer
care after discharge. The customer relationship management during the in-patient period,
requires care in two major things. One is the human aspect while second is the procedural aspect.
Here we are assuming that the quality of the treatment given by the hospital is good. Similarly,
the post-discharge customer care management also has two important things. First, the
maintenance of the records for each patient and second, the regular interaction with the patients.
Both are complementary to each other.
Customers in a hospital
Customer can be defined as the recipient or beneficiary of the outputs of work effects or the
purchaser of products and goods. The types of customers in a hospital can be defined as follows:
Patients are those persons who come to the hospital for treatment and to avail the facilities
rendered by the hospital.
Attendants are the accompanies of the patients or the visitor who come to visit the patient
during his/her stay in the hospital.
Clients can be the employers of companies who refer their employees to a particular hospital
on emergency. They can also be the doctors who refer their patients to a particular hospital in
certain contexts.
Customers are presently healthy to avail the benefits offered by hospital in respect of health
packages and insurance schemes etc. The present study is related to these customers.
In Patient CRM
The most important issue in the ’in-patient’ CRM activities is the human aspect. Which means
that every employee in the hospital, who is interacting with patients, should show real care and
concern in his words and deeds in dealing with patients. All the employees, right from the chief
doctor to the ward boy should understand that it is their duty to ensure customer satisfaction.
The employees should be given proper training in these regards. Besides, the employees should
ensure that the patient develops faith in treatment given in the hospital. Patients should be made
to understand that the hospital is doing their level best to cure him/her.
The second thing is the procedural part. The hospital should have well defined procedures for
activities. The employees should be clear about the procedures and the same has to be instructed
to the patients whenever needed. This will help the patients in avoiding hassles. For example,
one of the hospital has displayed the following chart in various places inside the hospitals. It
may be a simple thing, but such chart helps the patient understand about macro level procedure
for treatment.
Post Discharge-CRM
The most important thing in the post- discharge CRM activities is ‘maintaining database’.
Traditionally hospitals expected the patients to maintain records. But in this competitive market,
the hospital should also maintain the records of the patients on its own. They should maintain a
computerised database of each and every patient in detail. This is important in the hospital, as
the patient generally need to visit the hospital regularly. This database will help in the other
CRM activity of the post-discharge period, i.e. ‘maintaining relationship with the patients.
Let us see how it helps. For seeking treatment for , even after getting-discharged from the
hospital, the patient needs to come again for further treatment or check up at regular intervals. If
the hospital maintains a database, it can send reminders to the patient one-week before the re-
visit date and to get the confirmation that the patient would be coming. Besides, the hospital can
send greetings to the patients on birthdays and anniversaries. This will make patient feel special
and the hospital cares for him.
Besides, the database will help in understanding the profile of patients who are visiting the
hospital.
The hospital can list out the geographical areas from which most of the patients suffer from , the
kind of from which most of patients suffer, the stage in which they come, most important
referral sources, number of insured and non-insured patients etc.
One of the most important activities in the post-discharge CRM is creating ‘ Rehabilitation
Centre’. There are lots of social insecurities that are attached with . For example, a woman
suffering from breast may loose her breast as part of the treatment. All these people feel a sense
of social insecurity. A club can be formed for the patients of the hospital to nullify the insecure
feelings.
This club would contain patients suffering from and the people who have already been treated.
All these people can meet from time to time at a place where everything would be organized by
the Hospital. The patients who have already been treated may give moral support to the patients
undergoing treatment. Besides, the club would employ a psychiatrist to counsel the patients.
Doctors can help clear some of the myths in the patient’s mind which will help not only in
retaining the existing patients but also getting favourable word of mouth.
Essentially, a CRM would include systems of staying in regular touch with your customers. You
may need to regularly send them cards, gifts; etc .It will also include inducing the past patients to
participate in activities being carried out by your hospital for social causes. Having feedback
forms filled during the discharge hour of the patient is one useful CRM exercise. Suggestion
boxes and patient satisfaction surveys can also be used.
Some examples of CRM practices in hospitals
Homeocare International (HCI):
A a chain of super speciality Homeopathic clinics founded by a group of committed and
dedicated doctors with decades of rich experience, excellence and expertise in treating various
diseases. Homeocare International is the new trendsetter in Homeopathy. The doctors are highly
qualified, gold medalists and M.Ds using world-class techniques, latest advances, hi-tech
technology and sophisticated software for the diagnosis and treatment of the diseases without
any side effects. Our advanced techniques in Homeopathy had been tried, tested and retested by
millions of fully satisfied patients nationally and internationally.
It is the first clinic having a customized patient database, which contains patients medical
history and treatment details. This information is accessible to all our clinics through a
network. With this facility patients can discuss problems with our doctors from anywhere
in india or abroad and can get his medicines by courier any part of the world.. This
facility ensures continuous treatment without break which is a must for desired results.
World's first cyber clinic with individual case discussion by group of super specialist
doctors in that particular disease.
Fortis Hospitals:
Fortis Healthcare has a major presence in North India with a network of world-class hospitals. In
each of our facilities the ultimate focus of our services is the health and happiness of people, our
patients and their near & dear ones.
Patients experience this sensitivity whether you are an in-patient attending an OPD or simply
accompanying a family member.
In the patient-friendly environment in Fortis hospitals, the layout of departments has been
planned so as to save patient time and minimize in-patient movement.
The Hospital Information System (HIS) and Electronic Patient Record (EPR) instantly provide
patient history details and latest test results to the desktop of the Fortis Healthcare specialist you
are consulting, saving valuable time.
The welcoming guest relations officers and counselors at the Fortis hospital assist in accessing
the services- even such conveniences as the cafeteria, ATM or prayer room.
There is a section on the website which provides helpful information for visitors and also
highlights some of the special services available to our patients and their families.
The expanding Fortis Healthcare network ensures accessibility to large sections of the population
and ease of medical information transfer (Electronic Medical Records). The network has the
convenience of outpatient medical services and diagnostic testing all under the same roof. Our
facilities are built with our patients in mind. Ease and convenience for the visitors and patients
are incorporated into each facility we design.
GNRC hospital Guwahati:
GNRC relationship plan (GRP) was introduce in December 2000. This scheme announced that
each rupees spent at GNRC was to be counted as a loyalty point. For each point so earned and
accumulated the patient would received 5% incentive price on his / her next billing. The loyalty
points were to be freely transferable and redeemable at any time. The loyalty incentive coupons
were landed out while the bills were settled in addition a computerized record was also kept of
these customers to generate periodical Statements.
Special supply and delivery arrangements as just in time supply preferred vendor programs
membership in healthcare networks integrated delivery system, cross, selling, Mutual referral of
service and health care providers
The GRP of GNRC hospitals encouraged word of mouth referrals two. Thus if GNRC patient
referred the hospital to his or her friends/relatives, he or she earned 200 points that could be
redeemed at the time of payment/settling the hospital bills. Each suggestions given by the GNRC
guests/patients was also rewarded with an incentive worth 50 points. The objective of the GRP
was to link pricing with relationship. It was to encourage repeat grist's encourage patients to
recommended other friends and relatives induce more referrals and to thank the existing
customers for their percentage.
When hospitals are interested in leveraging the resources of their partners they may engage in,
joint marketing/training programs, joint product/process development cross distribution
arrangements, logistics/facility sharing, co-providing services, joint ventures and alliances.
Friends of GNRC (FOG) scheme health care providers are dependent on the referral feed and
support of general physicians (GPS). It is true for the word and India, where 30 to 45% of health
care demand comes firm referrals. GNRC received on an average 40 to 50% patients
recommended by the general physicians and the of city doctors through out northeast. A majority
of the referring doctor and physician received incentive called outs from most of the receiving
hospitals as finders fee. Their referrals to a supper specialty hospital were more often based on
the monetary considerations while the lure of incentives are cuts prompted the general
physicians, primary health care centers and nursing homes to refer to a super specialty hospital,
many of them had a genuine anxiety as well.
A typical Hospital Management System (HMS)
A typical Hospital Management System (HMS) is for computerizing the working in a hospital.
The software takes care of all the requirements of an average hospital and is capable to provide
easy and effective storage of information related to patients that come up to the hospital.
It generates test reports; provide prescription details including various tests, diet advice, and
medicines prescribed to patient and doctor. It also provides injection details and billing facility
on the basis of patient’s status whether it is an indoor or outdoor patient. The system also
provides the facility of backup as per the requirement.
Conclusion:
India is witnessing an era where new hospitals are being built at a pace like never before. There
are exciting challenges that these hospitals are facing while they are being commissioned. One
daunting task that every hospital, new or old, small or big, is facing today is the task of
marketing itself.
It is rather unfortunate that almost all these doctors had a dismal marketing strategy, if indeed
they had one. For the most part, they were not even aware that a marketing strategy needs to be
crafted. While millions are spent upon creating a product called a hospital and so little is done to
promote them in a professional manner. The people who offer this product are are very well
trained in their profession. But what is pitiable is the way this product called ‘hospital’ is
packaged and marketed.
Bibliography:
The following websites were consulted for the topic:
http://www.expresshealthcaremgmt.comhttp://www.indmedica.com/journals.phphttp://www.healthmgttech.comhttp://www.daniweb.comhttp://www.antya.comwww.fortishealthcare.com/http://www.iisjaipur.orgwww.indianmaba.comwww.homeocare.in