Copy of Healthcare Service Sector

8/3/2019 Copy of Healthcare Service Sector

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Health care is the prevention, treatment, and

management of illness and the preservation

of mental and physical well-being throughthe services offered by the medical, nursing,

and allied health professionals


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Estimated to be a US$ 30 billion market. Includes pharmaceuticals, healthcare, medical and

diagnostic equipment and surgical equipment andsupplies. Accounts for 5.2 per cent of the GDP. It employs over 4 million people.

Private spending accounts for almost80 per cent of total healthcareexpenditure.


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US$ 45.76 billion will be spend on healthcare in thenext five years - study by CII-McKinsey .

with the expected increase in the pharmaceuticalsector, the total healthcare market in the countrycould increase to US$ 53-73 billion (6.2-8.5 per centof GDP)

in the next five years.


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90 per cent of the private healthcare is met by theunorganised sector leaves open a huge potential

market for the organised sector to tap. Singapore based Parkway Group and Pacific

Healthcare Holding, Malaysia-based Columbia Asia,Dubai-basedEMAAR Group, and US based Prexus

Healthcare Partners.


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Developed world discovered that it could get qualityservice for less than half the price.

It is not only the cost advantage that keeps thesector ticking. It has a high success rate and agrowing credibility.

The success rate of cardiac bypass in India is 98.7

per cent against 97.5 per cent inthe U.S.


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Health insurance grew by a robust growth rate ofnearly 44 per cent during 2006-07.

The private sector has been steadily increasing itsshare over time accounting for 38 per cent of totalhealth insurance by end-March 2007 (as against 24per cent by end-March 2006).

less than 10 per cent of the population has somesort of health insurance, the potentialmarket for health insurance is huge.


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McKinsey-CII estimates the number of potentialinsurable lives at 315 million.

Swiss Re estimates a potential of US$ 7,700 millionin health insurance premium by 2015. Private Players: Bajaj Allianz, Royal Sundaram, Iffco

Tokio, and Reliance General Insurance


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Apollo Hospital is setting up a standalone healthinsurance company in association with DKV, a

leadingEuropean (Germany-based) health insurer. US-based Aetna and Cigna Healthcare and UK-

based Bupa Healthcare are looking to enter themarket.


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IT has been predominantly used by most hospitalsin India as part of their administrative processes.

The role of IT is now transcending. Medical technology, which plays a critical role in

diagnosis and treatment of diseases can not beimagined without IT support.


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HISClinical IS

Financial IS

LaboratoryIS

Nursing IS

PharmacyIS

RadiologyIS


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Telehealth is the delivery of health related servicesand information via telecommunications

technologies. May be as simple as two health professionals

discussing a case over the telephone. or as sophisticated as using satellite technology

using videoconferencing equipment or robotictechnology.


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Transmission of medical images for diagnosis. Groups or individuals exchanging health services or

education live via videoconference. Transmission of medical data for diagnosis or

disease management. Advice on prevention of diseases and promotion of

good health by patient monitoring and followup. Health advice by telephone in

emergent cases.


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Distance education including continuing medicaleducation, grand rounds, and patient education.

Administrative uses including meetings amongtelehealth networks, supervision, andpresentations.

Research.

Online information and health data management. overall healtcare system

management.


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E-health, the integration of tele-health technologieswith the Internet is the next logical step to tele-

health. E-health, on the other hand, is more accessible due

to its increasingly affordable ability to communicatethrough a common set of standards and across

operating systems.


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Although health-related Web sites garnerconsiderable media attention, they represent only a

small sampling of the ways in which the Internet canbe used in health, itself a large sector embracinghealth care, public health, health education, andbiomedical research.


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Enable consumers to access their health records, enter data orinformation on symptoms, and receive computer-generatedsuggestions for improving health and reducing risk;

Allow emergency room physicians to identify an unconsciouspatient and download the patient's medical record from ahospital across town;

Deliver care instructions to a traveling businessperson whobegins to feel chest pains while in a hotel room;

Enable homebound patients to consult with care providers overreal-time video connections from home, using medical devicescapable of transmitting information over the Internet;

Support teams of specialists from across the country whowishes to continue.


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These are specialized and customised services

offered in the HealthCare sector.


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Characteristics ofHealthCare Services


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Consultancy and medical advice are always intangible in nature barring afew like

1. Clinical results 2. Medicines 3. Other physical environment

To reduce the intangibility of service, and the uncertainty caused by it,services like nursing and care, regular checkups by medical practitioner,

etc should be maximized to make the consumer can feel the physicalaspect of the service provided.


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Clinical results are valid only at that point of time

when it was taken. After a certain period, the resultsof previous test taken are rendered invalid.

Counseling sessions are delivered at a point of time,

and such services cannot be stored for later use.


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Production and Consumption of the service occursone inseparably. A consulting session cannot occurunless a patient is present with a consulting personal.


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In the healthcare industry the same service areunlikely to give the same result at a different time, or

different customer. A particular therapy that works fora patient may not work for another patient with thesame requirements.

We should try to reduce this perceived risk due to

variability as much as possible, for variability increasescost of service.


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The technology creates the first-ever roadmap forwidespread commercial development of "smart" devicesthat, for example, take a person's blood pressure,

temperature or respiration rate the minute a personsteps into his or her house -- then transmit itimmediately and automatically to doctors or family.


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UCLA Medical Center has

announced initial clinical tests of

the RP-6 mobile robot system in its

neurosurgery intensive care unit(ICU). The RP-6 robot, made by

InTouch Health Inc. in Santa

Barbara, Calif., allows doctors to

"virtually" consult with patients,

family members and health care

staff at a moment's notice, even if

miles away from the hospital.


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These systems and

instruments could someday

help doctors treat patients

more safely and effectively

and allow them to perform

surgical tasks that are nearly

impossible today.


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Remote Presence (RP6) Robots

allow a medical expert to visually

examine and communicate with a

patient from anywhere in theworld, via the machine, using

wireless technology. The robots

(nicknamed by staff Sister Mary

and Dr Robbie) can also be usedfor surgical teaching and even

videoconferencing.


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Bandwidth explosion can enableTelemedicine

Sick patient log on to the Internet

and come to know about theprescription, based on thesymptoms.

Doctors knowledge (explicit-structured) mapped onto machines,

so that the patients can takeconsultancy from electronic doctors.

Dearth of Doctors Defeated.


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Check availability of experts at any time

Fix expert appointment - time & place

Reserve hospital rooms/ operation scheduleetc.

Request for ambulance / support staff

Payment by e-cash / credit cards.


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A robot imitates theactions of the doctor ata remote location.

The expertise of scarcespecialists could bemade available toneedy patients.


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Healthcare Marketing -- The marketing of

healthcare products and services.

Pharmaceuticals, medical devices / supplies/

equipment, medical services , hospitals.


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HOSPITAL

PATIENTDOCTOR


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The service product is an offering of a commercialintent having features of both tangible andintangible seeking to satisfy new wants anddemands of the consumer.

Healthcare services has following features Quality level

Accessories Packaging Product Line

Brand name


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In the Indian setting where a number of

persons are below poverty line it is

challenging task to formulate a pricingstrategy, which is successful in serving the

social interests and generating profits.


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The pricing strategy should do the following

Achieve the financial goals of the Industry (eg.: profitability)

Fit the realities of the marketplace (will customers buy at that price?)

Support a product's positioning and be consistent with the other

variables in the marketing mix


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Some Pricing Strategy in Healthcare industry

Effective Pricing

Promotional Pricing

Premium Pricing


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1 2FREE

(For no income

group)

DiscriminatoryPricing

Subsidized

(For low-income

groups)

Cost + losses from2(Middle-incomegroup)

Cost + surplusto make up the

losses of 1.

34


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Cost based pricing:

Competition based pricing

Demand based pricing


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Place ( Or distribution ) is one of the aspects of marketing. Adistributor is the middleman between the manufacturer andretailer. Before choosing the place or type of distribution,

one must ask these pertinent questions.

Should electronic methods of distribution be used?

How long should the channel be (how many members)?

Where should the product or service be available?

When should the product or service be available?

Should distribution be exclusive, selective or extensive?


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A number of alternate 'channels' of

distribution may be available:

Hospitals Clinics

Home base

Visiting

Ambulance Mobile Hospitals

Agent (who acts on behalf of the producer)


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Promotion involves disseminating information about a product,product line, brand, or company.

Product management typically deals with these activities: Defining new services and gathering market requirements (NewProduct Development)

Working across all functions to bring a product to launch

Promoting the product internally across all functions

Bringing new products to market

Product differentiation

Product Life Cycle considerations

Product portfolio management


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Under marketing mix people includes all the

people involved in the service providing

process. Doctors, nurses, supporting staff etc

Well trained staff and qualified doctors.


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Process generally forms the different task that areperformed by the healthcare services. The processfactor is mainly dependant on the size of thehospital/service provider and the kind of service it is

offering.

Transportation

Billing Personal Care


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Physical evidence can be in the form of smart

buildings, logos, mascots etc a smart building

infrastructure indicates that the hospitals cantake care of all needs of the patients and

provide required services.


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Government Sector

ApolloGroup

Fortis

Max

Wockhardt

Piramal

Duncan

Ispat

Escorts

RanbaxyGroup Company


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Mission

To become a research-based international pharmaceutical

company. Vision

To create a world-class integrated healthcare delivery systemin India, entailing the finest medical skills combined with

compassionate patient care


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Business

One of the largest private healthcare companies in India,based on the number of hospital beds.

Currently a network of 11 hospitals primarily in north India,15 satellite and heart command centers in hospitals acrossthe country and one heart command center in Afghanistan.

Opened first hospital in Mohali in 2001 On September 28, 2005, acquired a 90% interest in Escorts

Heart Institute & Research Centre Limited (EHIRCL).


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March 20, 2006, acquired a99.86% interest in International

Hospital Limited (IHL) from the Promoter Group for totalconsideration of approximately Rs. 301.5 million

March 20, 2006, acquired a 100% interest in Oscar Bio-TechPrivate Limited (OBPL) from a Promoter Group companyfor total consideration of approximately Rs. 30.5 million (the

OBPL acquisition). Currently have approximately 1,490 inpatient beds in use

across network of 11 hospitals, with capacity to increaseinpatient beds to approximately 1,790.


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Competitive Strengths

Skilled doctors dedicated to quality patient care Modern, patient-centric hospital facilities.

Cost-effective business model

Depth of coverage

Proven ability to develop facilities

Professionally managed administration Brand equity


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Business Strategy

Continue to grow with a flexible expansion program

Expand into new regions. Focus on high-growth segments of the healthcare market. Attract and retain prominent, skilled doctors.

Improve occupancy rates and increase average income per

bed in use Maximize efficiencies across our hospitals through greater

integration and better supply chain management. Equip administrators with leadership skills and best practices


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IT infrastructure system maintains electronic patient records

and imaging that can be quickly transmitted throughout ahospital, to hospitals network and to offsite locations for

quick diagnoses and treatment, and also assists withmonitoring and coordinating procurement, stocking, billing,housekeeping, staffing and patient treatments. Integrated

system simplifies scheduling and billing for patients anddoctors, improves inventory management and results in

efficiencies across operations.


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Some of the key equipment used Radiology and Imaging: 64 Slice high end CT (Computed Tomography)

scanners, magnetic resonance imaging (MRI) equipment, X-ray machines

and gamma cameras Cardiac Care: 4 D Color doppler, stress test machines, Holter system,

heart lung machines and the Da Vinci Robotic System Neuro-sciences: operating microscope, operating tables, OT Lights and

C-Arms Orthopedics: navigation systems and instrumentation and operation

tables Urology: equipment for extra corporeal and intra corporeal lithotripsy,

video camera system for endoscopy and laparoscopy supported bysurgical instruments

Pulmonology: pulmonary function test machines, sleep lab for

plethystography and apnea studies and bronchoscopy systems


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Diabetology: foot pressure measurement systems, body analyzersystems and blood glucose analysis systems

Gastroenterology: video endoscope suites for minimally invasivediagnostic and therapeutic procedures

Mother and Child Care: equipment for labor, delivery and recovery inbeds

Critical Care: modular patient monitors, ventilators, syringe and infusionpumps supported by a facility for central monitoring and control

Emergency: ambulance with emergency equipment such as transport

monitors, ventilators and defibrillators


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Mission

Creating value by understanding and communicating withour customers and business partners

VisionTo be the most admired Pharmaceutical Company in India


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Mission

Our mission is to bring healthcare of international standards

within the reach of every individual. We are committed to theachievement and maintenance of excellence in education,research healthcare for the benefit of humanity

Visionwe stand committed to building an infrastructure that will

create an environment that protects and nurtures our futuregeneration


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Demographic factor

Regulatory Factors

Social Factor Economic factor Technological Factor


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target the right patients segmentation system

segmentation system accounts for the key drivers ofconsumers health care decisions.

to accurately predict health care utilization it must beapplicable at the household level

it must segment each household based on the bestpredictors of utilization.


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Segmentation system built upon household-level analysis of

the key drivers of health care utilization:

Age (of head of household) Marital Status

Gender (single households only)

Presence or absence of children

Household Income


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The strongest predictor of household use of afitness/wellness program was Age. After Age, thenext strongest predictors were Gender and Household

Income, depending upon the age group. AgeGroup: 18-24, 25-34, 35-44, 45-54, 55-64, 65-74, and

75+

Marital Status/Gender/Children: Single male; singlefemale; single father; single mother; married with children;and married but no children

IncomeGroupings: low, lower middle, upper middle, andupper


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Governments are playing major role in building healthcare

infrastructure and improving delivery systems.

NHP 2002 4.16.3 This Policy recognizes the immense potential ofinformation technology applications in the area of tele-medicine inthe tertiary health care sector. The use of this technical aid willgreatly enhance the capacity for the professionals to pool theirclinical experience.

The Union government has notified 10 medical devices includingcardiac and drug eluting stents as drugs that require centralclearance prior to import, manufacture or marketing in the country


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Literacy and Health In non-industrialized nations, improved literacy skills of a population are associated with betterhealth status and higher levels of participation in preventive health behaviors ( Published in

report ofthe National WorkGroup on Literacy and Health, 1998)

Health LiteracyAccording to the American Medical Association, poor health literacy is "a stronger predictor of aperson's health than age, income, employment status, education level, and race

Test methods:

Rapid Estimate of Adult Literacy in Medicine (REALM)

Test of Functional Health Literacy in Adults (TOFHLA)Wide Range Achievement Test (WRAT)


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Historical and contemporary experiences have shown that

there is a definite but complex relationship betweeneconomic growth on the one hand and health status on the

other.

There is not, however, a direct correlation between health andnutrition indicators and GDP per capita levels, because

improved income distribution - even at low income levels -can accelerate improvements in health,


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Evidence from many countries shows that income is

probably the most important of the outside factors.

Since education and housing status are themselves stronglycorrelated with income, this suggests that income is a

primary determinant of nutritional status.


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New technologies, from spectacular videopresentations to virtual reality devices and virtualmeetings, will offer exhibitors more impact and new

ways to communicate to healthcare professionals.Contribution

Health Hiway an Apollo Hospitals and IBM initiative HIMS, Mini HIS by Wipro Healthcare

Personal mobile healthcare devices Intel


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Health informatics or medical informatics is the

intersection of information science, medicine andhealth care. It deals with the resources, devices and

methods required to optimize the acquisition,storage, retrieval and use of information in health and

biomedicine.


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clinical guidelines,

formal medical

terminologies, and information and

communication systems.

clinical informatics,

nursing informatics, imaging informatics,

consumer healthinformatics,

public health informatics, dental informatics,

clinical researchinformatics,

bioinformatics and

pharmacy informatics.

Health informatics tools include not only computers but alsoHealth informatics tools include not only computers but also


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By identifying key health plan trends that affect your

business, Health Plan Data & Analysis allows you tocreate your most comprehensive strategic plan AND

sales strategies at state and local levels.


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1. Demand for lower healthcare costs.

2.Growing consumerism movement in healthcare.

3

. The mov

e to

o

nline health reco

rds. 4. Increasing transparency in healthcare.

5. Interest in pay-for-performance programs.

6. Expanding government influence.


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India's high population makes it an important player in the

Healthcare Industry. According to the IRDA, the Indianhealthcare industry has the potential to show the same

exponential growth that the software industry showed in thepast decade.

Among the top five therapeutic segments, gastro-intestinal

and cardiac therapies are experiencing both high volume andvalue growth.

India is unique as it offers holistic medicinal service, yoga,meditation,ayurveda, allopathy a gamut of services thatwould be difficult to match with other countries.


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Opportunities in Indian Healthcare Sector,

Publisher: Bharat Books, 2006

http://www.ibef.org/industry/healthcare.aspx http://www.tech2.com/biz/india/interviews/h

ealthcare/healthcare-industry-scales-up-it-investment/8151/0

http://www.sciencedaily.com/releases/2007/07/070724113934.htm

http://www.wikipedia.com


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Prime Ministers Council on Trade and industryhttp://indiaimage.nic.in/pmcouncils/reports/health/welcome.html,

Solucient, Healthcare Marketing Solutions.http://www.solucient.com/

Building marketing strategies in Asia Pacific,http://www.pharmabiz.com/article/detnews.asp?art

icleid=31143 http://www.piribo.com/publications/healthcare_market/opportunities_indian_healthcare_sector.html


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Copy of Healthcare Service Sector