HealthCare Service Marketing

7/31/2019 HealthCare Service Marketing

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Applying

Service Marketing Concepts

1SLIMS

Presented to

Prof. Supriya Bhutiyani10/20/2012

Tarang Baheti99259 23222


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SLIMS2

Indian

Healthcare Sector

10/20/2012


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Rapid Expansion.

Healthcare is one of Indias largest sectors, in terms of revenue andemployment, and the sector is expanding rapidly.

The sector is more than $34 billion, translates to $34 per capita, orroughly 6% of GDP.

This year, Indias healthcare sector is projected to grow to nearly $40billion.

The private sector accounts for more than 80% of total healthcarespending in India.

One driver of growth in the healthcare sector is Indias boomingpopulation

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Expanding Middle Class-An opportunity

By 2025, an estimated 189 million Indians will be at least 60 years ofagetriple the number in 2004, thanks to greater affluence and betterhygiene.

The growing elderly population will place an enormous burden on

Indias healthcare infrastructure. Expanding middle class-

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Changing Scenario of Service

More women are entering the workforce as well, furtherboosting the purchasing power of Indian households-changing composition of healthcare sector workforce.

Many of these women are highly educated: the ratio ofwomen to men who have a college degree or higher levelof education is 40:60

Lifestyle diseases are faster than infectious diseases inIndia

Result - increase in cost per treatment, wellness programstargeted at the workplace.

Could help to reduce the rising incidence of lifestylediseases.

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In Different view

Service Marketing Mix7

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Price-

The government uses price controls to ensure that vitaldrugs are affordable to the Indian population. It is anongoing challenge to balance the commercial interestswith the broader social objective.

Physical environment-

The physical infrastructure is woefully inadequate to meettodays healthcare demands, much less tomorrows. Of the15,393 hospitals in India in 2002, roughly two-thirds werepublic.

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Place-

The number of public health facilities also is inadequate.For instance, India needs 74,150 community healthcentres per million population but has less than half thatnumber. In addition, at least 11 Indian states do not havelaboratories for testing drugs, and more than half ofexisting laboratories are not properly equipped or staffed.

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Place

Telemedicinethe remote diagnosis, monitoring andtreatment of patients via videoconferencing or theInternet. Telemedicine is a fast-emerging trend in India,supported by exponential growth in the countrysinformation and communications technology (ICT) sector,and plummeting telecom costs.

Many hospitals have developed public-private

partnerships (PPPs), among them Apollo, AIIMS, NarayanaHridayalaya, Aravind Hospitals and Sankara Nethralaya forTelemedicine.

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Do Bharat baste hai India mein

Process

The healthcare divide- When it comes to healthcare, thereare two Indias: the country that provides high-qualitymedical care to middle-class Indians and medical tourists(25% Indians), and the India in which the majority of thepopulation lives with no access to quality care.

Mission- the government is working to increase thecapabilities of primary medical facilities in rural areas-

free medicines.

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PromotionThe emergence of India as a destination for medical

tourism leverages the countrys well educated, English-speaking medical staff, state-of-the art private hospitals an

diagnostic facilities, and relatively low cost to address thespiralling healthcare costs of the western world.

Western tourists coming to India to pursue Ayurveda(Kerala).

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Political Analysis:

The government is reducing its hold onsubsidies.

There are particular pressure groups which tendto have an influence on government hospitals

The cost of medicines also tends to affect

hospitals besides affecting the pharmaceuticalindustries

Relationships between neighboring countriesalso affect the hospital sector


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10/20/2012SLIMS

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Economic Analysis:

Increase in income would lead to an increase inthe standard of living. Thus peoples lifestyles

changes and health is better understood. Thusthere is a room for specialized treatment,doctors, and hospitals

Government has made loans easily available andthus people with limited means could availbetter/specialized treatment


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Social Environment Analysis: Medical facilities have increased since there is more

awareness of healthcare among the population

Certain percentages of beds have to be kept for poor

people. E.g. in Bombay 20% of beds has to be kept reservedfor poor people.

Look after the needs of local poor people.

Teach hygiene, sanitation among the poor masses.

Safe disposal of hospitals wastes like used injectionneedles, waste blood etc. and taking due care ofenvironment.

Spreading awareness about various diseases through

campaigns and free medical check ups.


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10/20/2012SLIMS

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2) Inconsistency: Quality of service offered differs from one extreme toanother. This is because of total dependence on human interactivity orplaying human nature, i.e. because human beings can never mechanizeor replicate themselves.

Ways to overcome this drawback:

Training: A scheduled Training of the employees in respect of thework/service can prove to be the best solution to this drawback.

E.g. American Medical Association makes it mandatory for its memberdoctors to undergo 6 weeks of training every year or 6 month oftraining every 6 years.

Automation: The service providers analyze that, human qualitydeteriorates with repetition of work; this has an ill effect during thefinal delivery of the service.

E.g. Automatic blood testing equipments ensuring safety and accuracy


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3)Inseparability: Service transaction becomes unique because itmandates, during transaction, the physical presence of the providerand the consumer.


Training: This is the best way out for the setback. As the provider ofone service can not be made available at two different places at thesame time if the situation demands so, unlike, in the case of productswhere the producer of the same need not be present at all times wherethe transaction takes place.

E.g. Wockhardt & Duncans Gleneagles International as set up adedicated teaching centre for paramedics, particularly, nurses and alsoprovide higher-end courses for doctors.


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4) Perishability: Services are intangible, they cannot bepacked & neither can be stored nor can they be inventoried.The implication is that the service has to be produced andconsumed instantly; there is no scope of storage.


Managing demand & supply: That is to say that, therehas to be provision for all sorts of stipulations at all timesto the greatest possible extent.

E.g. Service developmentsaccording to market needs.


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CRM

CRM


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Vision


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CIMS I t ti l P ti t S i T


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CIMS International Patient Services Team

will take care of the following:

Appointment Scheduling Treatment Packages in Advance

Visa Assistance*

Airport Pick-n-drop facility

Hotel reservations assistance

International newspapers

Ambulance pick-up, if required

Assistance for dining services Follow-up assistance for future appointment

schedule after discharge


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Testimonial

Our stay at the Hospital has been excellent.

Our room has been kept clean by men and women whowere very charming and who take their work seriously

with a lot of humbleness. This group of people was a team that demonstrated to us

the warmth of this place.

This team of Doctors was just wonderful. They were

more than what I have ever seen before.

Patient & Relative: Ambale Johnston Samwel &

Obanda Jedidah Awaor

INNOVATIONS IN HOSPITAL INDUSTRY


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INNOVATIONS IN HOSPITAL INDUSTRY

Auto check-in and check out Specialty hospitals

Aromatherapy at Apollo.

Biventricular pacing.

Bone bank at AIIMS. Hospital administration.

Medical records management.

Oxygen under pressure treatment at Apollo.

Waste management. Telemedicine.

Virtual Hospitals

TECHNOLOGIES IN HOSPITAL


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TECHNOLOGIES IN HOSPITAL

INDUSTRY

Same day OPD

Online reports

Imaging/ MRI Scan

Key Hole Surgery

Medical transcription

Biotechnology

Nanotechnology

SST: Self checking Machines/ equipments


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MAJOR CORPORATE PLAYERS

The Apollo Group of Hospitals

Fortis Healthcare

Max India

Escorts

Wockhardt & Duncans Gleneagles International


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MEDICAL TOURISM

Medical tourism (also called medical travel, health tourism or globalhealthcare) is a term initially coined by travel agencies and the massmedia to describe the rapidly-growing practice of traveling acrossinternational borders to obtain health care.

Such services typically include elective procedures as well as complexspecialized surgeries such as joint replacement (knee/hip), cardiacsurgery, dental surgery, and cosmetic surgeries.

As a practical matter, providers and customers commonly use

informal channels of communication-connection-contract, and in suchcases this tends to mean less regulatory or legal oversight to assurequality and less formal recourse to reimbursement or redress, ifneeded.


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Leisure aspects typically associated with travel andtourism may be included on such medical travel trips.

Prospective medical tourism patients need to keep inmind the extra cost of travel and accommodations when

deciding on treatment locations.

Factors that have led to the increasing popularity ofmedical travel include the high cost of health care, longwait times for certain procedures, the ease and

affordability of international travel, and improvements inboth technology and standards of care in many countries.


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PROBLEMS FACED BY THE INDUSTRY

Low public spending on health Lack of adequate beds in the hospitals

Lack of emphasis on prevention

Enforcing standards of medical care rendered by hospitals and privatehealth practitioners

Extremely low bed : people ratio Dominated by Government and Charitable Hospitals

Excessive overlap across primary, secondary and tertiary care

Skewed towards urban populace

Lack of adequate corporatization

Insurance to provide financial protection from catastrophic events

More research, awareness and communication and greater publicinvolvement in understanding health issues.


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SWOT

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SLIMS


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Strengths

1. Low cost of production.

2. Large pool of installed capacities3. Efficient technologies for large number ofGenerics.4. Large pool of skilled technical manpower.

5. Increasing liberalization of governmentpolicies.


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Opportunities

1. Aging of the world population.2. Growing incomes.3. Growing attention for health.4. New diagnoses and new social diseases.

5. Spreading prophylactic approaches.6. Saturation point of market is far away.

7. New therapy approaches.8. New delivery systems.9. Spreading attitude for soft medication (OTC drugs).

10. Spreading use of Generic Drugs.11. Globalization12. Easier international trading.13. New markets are opening.


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Weakness

1. Fragmentation of installed capacities.2. Low technology level of Capital Goods of this section.3. Non-availability of major intermediaries for bulk drugs.4. Lack of experience to exploit efficiently the new patentregime.5. Very low key R&D.6. Low share of India in World Pharmaceutical Production(1.2% of world production but having 16.1% of world''spopulation).7. Very low level of Biotechnology in India and also for NewDrug Discovery Systems.8. Lack of experience in International Trade.9. Low level of strategic planning for future and also fortechnology forecasting.


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Threats

1.Containment of rising health-care cost.2. High Cost of discovering new products andfewer discoveries.3. Stricter registration procedures.4. High entry cost in newer markets.5. High cost of sales and marketing.6. Competition, particularly from genericproducts.

7. More potential new drugs and more efficienttherapies.8. Switching over form process patent to productpatent.


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In few words...

The Indian healthcare sector can be viewed as aglass half empty or a glass half full. The challenges

the sector faces are substantial, from the need toimprove physical infrastructure to the necessity of

providing health insurance and ensuring theavailability of trained medical personnel with the

opportunities available equally.

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HealthCare Service Marketing