Group4 NewService Healthcare 1

8/13/2019 Group4 NewService Healthcare 1

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Redesigning Healthcare services Group 4


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The Indian Healthcare Industry-An Overview

India's healthcare sector has been growing rapidly and estimated to be worth US$ 40 billion by 2012

Revenues from the healthcare sector account for 5.2 per cent of the GDP, making itthe third largest growth segment in India.

The sector's growth will be driven by the country's growing middle class, which canafford quality healthcare.

Indian Healthcare Industry to Double in Value by 2012 Rising income levels Changing demographics Shift in disease profile from chronic to lifestyle diseases to propel the growth The health infrastructure across Indian states is projected to grow by an average of 5.8

percent per annum between 2009-2013, taking the total expenditure in 2013 to USD14.2 billion

Of the 32 Indian states that the report considered, the six states of Maharashtra,Rajasthan, West Bengal, Uttar Pradesh, Tamil Nadu and Andhra Pradesh areforecasted to represent approximately 50 percent of the expenditure for 2009-2013

period. While the Indian healthcare system has grown manifold over the past few years, it has

yet not been able to keep pace with the rapid rise in the population. One example ofthat is the availability of hospital beds in our country against a world average of

four beds per 1,000 population, India lags behind at just over 0.7 presently. There is a growing need to deal with the issues of urban healthcare infrastructure as rural tourban migration has significantly increased the demand for these services.


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The Indian healthcare industry is estimated to double in value by 2012 and more thanquadruple by 2017. The main factors propelling this growth are rising income levels,changing demographics and illness profiles, with a shift from chronic to lifestylediseases. This is likely to result in considerable infrastructure. The healthcare sector in

India is undergoing a phase of reform propelled by rapid economic growth. Apartfrom the healthcare providers, emerging markets such as diagnostic chains andmedical device manufacturers are attracting increasing amounts of investment.

In comparison to all 32 states, Maharashtra forecasted to maintain its dominance asthe state with highest cumulative healthcare infrastructure expenditure, with spend of$ 7.3 billion between 2009 and 2010.

Growth drivers

Medical Tourism Telemedicine

Healthcare services outsourcing Diagnostic services Increasing awareness Medical insurance Aging population Growing urbanization Low cost treatment

Need For Multi-Speciality Hospitals

All facilities under one roof Most advanced facilities. Provides Basic Facilities at a rock bottom price with the same quality They can attract talent Indian Healthcare Industry-Growing and Innovation in High Tech Area Change in attitude towards healthcare

Concept for Designing:

The idea for the redesign of the service is to open a hospital with following facilities:

Therapeutic Specialties

1) Ortho

2) Cardiology3) Gynecology

4) Pediatrics


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5) ENT

6) Sex clinic/ counselling center

7) Rehabilitation center

8) Psychiatry

9) Dental

10) Wellness center

11) Ophthalmology

12) Medicine

13) Surgery

Super Specialty

1) Liver Transplant and Di gestive Diseases

2) Joint Replacement

3) Women and Child Care

4) Trans Nasal Brain Tumor Surgery

5) PELD Minimal Access Slipped Disk Surgery

6) Urology and Andrology

7) Obesity Surgery

Diagnostic Services

Radiology: CT scan, MRI, bone mineral densitometry, mammo graphy, ultrasound,x-ray Laboratory: biochemistry hematology, serology, microbiology, clinical

pathology, histopathology

Other support services:Endoscopy, blood bank and blood components, dialysis, non -invasive cardiologysuch as echo, stress testing, holter, and ECG

IT Driven tools and services:

Hospital management system

Billing

Inventory

Accounts management


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Records management

The city selected for the hospital is Pune, Maharashtra due to the following factors:

Positive Factors:

81% Literate population

Densely Populated 7,214/ Km 2

Majority of High and Middle income group

Good Sewerage system

Huge scope for further development

Population of Pune city (2009) excluding suburbs is around 33 Lacs(approx.). Total bed stren gths (which includes Private and GovernmentHospitals) is 6000 approx. So number of beds per 1000 population is 1.8 , butaccording to WHO standards it should be 3 . So we are short of 4000 beds inPune. And this shortage will increase in future.

IT Services sector remains a major driver of the economy and jobs created here,Pune's NRI Diaspora and first-generation of successful technologyentrepreneurs are encoura ging a renaissance of entrepreneurial activity.

Pune is emerging as a prominent location for IT and manufacturing companiesto expand.

25% of income of Pune comes from IT sector.

Pune has the sixth largest metropolitan economy and the highest per capitaincome in the country.

Additional 2,500 additional beds in 2016

Negative Factors

Reputed hospitals like Ruby Hall, Apollo Jehangir , Aditya Birla

Market penetration difficult for newcomer

High Real estate razes

Scarcity of Trained Doctors , Specialist, Nursing staff (common problem of wholeIndia)

Congested space around hospital premises


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SWOT Analysis for hospital

Strength

Location ,Pune

Capacity- Large no. of beds A lot of medical and surgical sub-specialties Availability of library and training classrooms and equipment and enable scientific

research

Skilled and expertise medical staffs On site testing equipment-- CT/MRI/LABS

High standards of quality, cost-effectiveness and patient satisfaction

Weaknesses

High priced service May be perceived

Opportunities

Location of hospital serves large population, more available connections, and resources. Ease of the public transportation to the hospital Well known hospital with good relationships and form collaboration with primary care

facilities (referrals?)

Ability to expand in hospital departments and health care Ability to work a variety of jobs with relative ease, both between institutions, states, and

countries, without losing step or grade (Veterans Administration)

Advance practice nursing is greatly encouraged and promoted with tuition

reimbursement

Threats

Presence of highly qualified competitors near the hospital (Rush, Univ of Chicago,

Advocate Healthcare Network)

Insurance changes and Medicaid/Medicare cut (not a large portion of payments, but still

substantial at ~20%)


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Law suits and penalties by the Department of Health ( found this online as a general

threat for all hospitals, we don't have to use it)

Major national healthcare reform will affect all aspects of organization

Unable to capture best candidate due to lengthy wait time Innovation and originality difficult due to institutional protocols Other competitors


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SWOT ANALYSIS FOR HEALTHCARE SECTOR IN PUNE

Strengths:

Pune called Oxford of East, has huge student base. Also it is hub of IT industry, thus we expect

high employer base utilization of insurance and hospital services.

Weaknesses :

Acute shortage of skilled doctors and trained Para-medical staff and investments required to

uplift the current status of the healthcare.

Opportunities:

Changes in demography and socio-economic mix are altering the population's disease

profile and increasing the incidence of lifestyle diseases thus increasing the demand for beds.

Threats: Steep population growth with lack of proper healthcare policies. Infrastructure and

accessibility to the healthcare for all is challenge in the coming days.

COMPETITOR ANALYSIS- DEENANATH MANGESHKARHOSPITAL

It has all the ultra-modern facilities including Blood Bank, Cancer research centre etc. Thehospital has more than 65 ICU beds with a central monitoring system. The hospital has awell-equipped auditorium of the capacity of 3000 people with air conditioner, advancedsound system and a sophisticated video projection system too. The hospital conducts lot ofawareness programs and makes films for the people and society like the films on diabetes etc.

It offers following facilities:

Department of medical geneticso Clinical Geneticso Cytogeneticso Molecular Geneticso Metabolic Genetics

Ayurveda Panchkarma Homeopathy Dentistry Clear vision clinic Voice clinic Obesity clinic Cardiology Neurology Kidney transplant Cancer treatment


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IVF centre Neuro-Trauma Unit

The 7Ps in Service Marketing Mix

Service Marketing Mix is an extended marketing mix and is an integral part of service blueprintdesign. The service marketing mix consists of 4Ps as part of marketing mix and adds 3Ps as

part of optimum service delivery. Understanding the service marketing mix is fundamental tohelp you design service is better manner about consumer behaviour and enhancing quality ofservice. This is not exception case for any services; special is healthcare industry where qualityof service is oriented factor to take care of patient health. Improving access, coverage andquality of health services depends on the way you design service in terms of incentivesinfluencing providers and users. The paper will present the 7Ps in service marketing mix for

a blueprint service design of multi-speciality hospital in India.

Product

In case of services, product is intangible, heterogeneous and perishable, seeks to satisfy needsof consumers. Service product can be defined as quality level, accessories, packaging,warranties, and product lines, branding, technical and functional.

Multi-Speciality hospital requires providing not only quality, reliable services but alsoconvenience services. It should be designed fully equipped with various facilities as thefollowing

Accommodation facilities:

AC* Suites

Multi-

SpecialityHospital

Product

Price

Place

PeoplePhysicalEvidence

Process

Promotion


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AC Deluxe class AC deluxe AC general

Common Class:

The specialties in care facilities include cardiology, cardio-thoracic surgery, gastroenterology,orthopaedics & joint replacement surgery, neurology, critical care medicine, nephrology,oncology, hand & micro surgery, urology critical care, adult fitness & health promotion

program, physiotherapy, laboratory medicine, reproductive medicine and complete health plans

Accessories services:

Emergency services with state of the art ambulances, tech telecommunication 24/7available to a patient in an emergency at any given time;

Ambulance services with hi-tech ambulances linked with fully equipped with doctors,

available to render medical attention, assistance to patient at the door step;

Diagnostic services to handle any kind of ailment and offer a wide range of facility, for

instance, oncology, neurology, orthopaedics, plastic surgery, etc.;

Pharmacy services offer services 24/7 which will cater the needs of inpatients and

outpatients; Causality services include a 24 hours causality department which attends to the

emergency cases.

Price

Pricing is the most important factor for patients to decide a hospital for a particular treatment.For a particular product or service you have to pay certain price for consuming that service.Service Pricing follows principles and practices of pricing of goods and therefore it may be

profit oriented, government oriented, competitive or customer oriented. In the case of multi-speciality hospitals, the price should consider as premium price as it can afford for the multiservice and quality offer by the hospital. The availability of treatment facilities is veryimportant for taking care of patients because in case of general diseases it may not be a requiredelement since its treatment is easily available but when treatment of complex patient opt for

premium price is very important factors.

Price in multi-specialty hospital depends on the cost of treatment (include doctors fee, thenature treatment of the treatment, various medicines and surgical items to be used, nurse servicefees, etc.) Plus the charges of different types of accommodations facilities available.

Facilities Price (INR) per dayAC Suites 6000AC Deluxe Class 4000


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AC Deluxe 2500AC general 1300Common Class 400

Promotion

Since a service offering can be easily replicated promotion becomes crucial in differentiatinga service offering in the mind of the consumer. In cases of multi-specialty hospitals offers high

premium price. Thus, multi-specialty hospital should invest heavily in advertising theirservices. Customers need to be made aware of the brand and services offer.

Impersonal promotion such as Press release Promotion, Bill boards Promotion Personal promotion: rely on word of mouth as experience of this customer is very

important to attract another customer.

Can be promoted through community initiatives Hospitals hold seminars and conferences relating to specific diseases, where they invite

the doctors from all round the country even foreign specialist, for detailed discussion.

This makes the hospital well known amongst the doctors, who could in future refer

complicated cases to the hospital. Be sponsor for healthcare programs on TV. Other ways of promotion can be medical camp, medical tourism, social networking

Place

Service delivery is concurrent with its production and cannot be stored or transported; thelocation of the service product assumes importance. Factors affect to the placing decision arenumber competitors in the area, market size, geographical regions, location that attract

customer the most, local infrastructure, accessibility place, public transportation network, etc.A hospital should be located in place which is easy to accessibility. In India, multi-specialtyhospital should present all states of India. The ideally location is nearby public transportation.

People

People are a defining factor in a service delivery process, since a service is inseparable fromthe person providing it. Consequently, customer service training for staff has become a top

priority for many organizations today. In hospital, the facilities, the quality and availability ofdoctors, nurses, supporting staff are very important. The behaviour and attitude of the personneloffering service will influence the customer's overall perception of the service. Customers area source of influencing other customers by word of mouth.


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Resource Allocation should be designed by computer assisted Human resources requirement planning as the following benchmarks

Front line: 3 employee each shift, 3 shifts per day, each shift 8 hours.

Back line:

HR Allocation Working hours ShiftStaff nurserequirement

Special arrangement: 1 nurse per patient for 24/7 AC suits and 1nurse for two patients for ACdeluxe.

Normal arrangement: the ratio will be 5:1

8 hours per shift 3

Nursing supervisor 1 person for one team of 10 nurses 8 hours per shift 3

Physician 60% for patient; 40% fordocumentation job support 2 nurseteams

8 hours per shift 3

Doctors 2-5 senior doctors for eachspecialty5-10 junior doctors for eachspecialty

8 hours per shift 3

Physical Evidence

Services are intangible in nature most service providers strive to incorporate certain tangibleelements into their offering to enhance customer experience. Physical evidence is theenvironment in which the service is delivered with physical or tangible commodities and wherethe hospital and the customer interact. Multi-specialty hospital may be designed following thehospital counter, common ward, single room, emergency room, common room, dress code,certificates and awards.

Three Aspects of Physical Evidence are:

Ambient Factors: Smell in the hospital, Effect of Colours used on walls

Design Factors: Design of the rooms, plush interiors, ICU location, etc. Social Factors: Type of Patients that come to the Hospital

Process

The process of service delivery is crucial since it ensures that the same standard of service isrepeatedly delivered to the customers. The different tasks performed by the hospital involvestwo different type of process for: Outpatient & Inpatient

Outpatient basically meets doctor at appointed time for simple medication Diagnosis Treatmentand takes advice from doctor. They dont require staying in hospital for period of time.


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Impatient is the care of patients whose condition requires admission to a hospital. Progress inmodern medicine and the advent of comprehensive out-patient clinics ensure that patients areonly admitted to a hospital when they are extremely ill or are have severe physical trauma.

Since service is inseparable, it is the process through which consumers get into interaction withthe service provider. Process generally forms the different tasks that are performed by thehospital. The process factor is mainly dependent on the size of the hospital and kind of serviceit is offering.

STP analysis

Segmentation-

The basis for segmentation may be basically demographic. The service being a multi-specialityhospital, cannot be segmented on the basis of age, sex or other psychographic or behaviouralfactors. The hospital is going to be a world class facility, with all modern equipments and stateof the art infrastructure. So income will be the appropriate basis for segmentation. Thesegmentation may also be done based on the geography.

Targeting-

The hospital will provide world class health care facility and state of the art technology to its

patients. The nursing staff will also be specially trained to serve the patients better. Thus thehigher middle to higher income group will be the target group for this hospital. Also beinglocated in the city of Pune, the target group is expected to be from around central and western

part of the country, Maharashtra, Gujarat and Karnataka.

Positioning-

Quality healthcare services with state of the an medical facilities under one roof

Well qualified staff

Excellent customer patients services

Easily accessible and competitively priced

Customized designs to suit the varying needs of different customers (patients)

Constant interaction with the patients and strong bonding with them

Promoting healthy India


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MARKETING STRATEGIES

Communication mix

The aim of this exercise is to establish the brand in the minds of the customers so well that it

becomes the first name that customers recall whenever discussing or thinkingabouthealthcare. The product would be heavily advertised before launching and then wewouldinvolve in extensive sales promotion. The communication strategy of promotingandadvertising the brand is as follows:

1. Magazines

Health General Lifestyle

2. Newspaper ads

3.Hoardings across various places in cities

4.Advertisements in local television shows

5.Sponsoring and .organising awareness camps and visiting schools

6. Mobile marketing

Public Relations and Publicity

We have chosen newspapers and magazines because of wide range of our targetaudience.Magazines and newspapers are always in the eye amongst public. Magazines areread for a period of a month, which brings more attention to an advertisement. We plan toadvertise in

National and local newspapers

Health MagazinesWe further plan to utilise the non pe rsonal communications such as photographs, films andtapes showcasing the facilities of our hospital and the advantages thatthe local populationwill have by getting themselves treated at a world class hospital ascompared to the localnursing homes.

Promotion activities

1.Hoardings: Visual hoardings to be placed on prime locations of the city to increasevisibilityamong masses. Also we would place hoardings in high density residentialareas, industrialareas and on city outskirts.

2.Camps: Blood donation camps and free check up camps would be arranged in schoolsandcolleges.


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3.Event Sponsorships: We would try to grab attention of the prospects by sponsoringeventssuch as cultural events, sports events etc. We can even organize marathons.4.Advertisementsto be placed on local and short route buses.

Sales Promotion

1.Tie up with Insurance companies for devising various insurance cover plans.

2.Tie ups with corporate and educational institutions for annual health contracts. Special packages for economically backward patients, senior citizens, maternity package,annualhealth check up package, package for diabetic patients, physiotherapy package etc.

Future Plan

We have devised a plan which would be followed in case of future expansions. We are planning to implement a Hub and Spoke model which will help us in expanding ourservicesto areas where we cannot currently reach due to infrastructure related issues. Issuesliketransportation, electricity, public sanitation facilities available in smaller towns andvillage scurrently dont allow us to open our super speciality hospitals in these areas. Even iftheseare ignored, there would be problems finding good doctors and other hospital staffwhowould be willingly ready to work in such areas. To circumvent these issues, we havecomeup with this model.

Service Blueprint

Service blueprinting is defined as a tool for simultaneously depicting the service process, the points of customer contact and the evidence of the service from the customer's point of view. The proposed blueprint allows for a quantitative description of critical service elements, such as time,logical sequences of actions and processes, also specifying both activities and events that happenin the time and place of the interaction (front office and back office that are out of the line ofvisibility for the users but are fundamental for the service).

1. Patient goes to the main Reception desk and gets and OPD (Out Patient

Department) card.

2. Depending on the complaint, Patient is referred t o the specialty department.

3. Patient meets the receptionist of the specialty department and specialty department

OPD is made.

4. Patient is sent to ' a Consulting room.

5. (In a non-teaching Hospital) pat ient is sent to a consultant (In ateaching hospital) Intern or Post Graduate attend to the patient.


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Service BluePrint for Multi-Speciality Hospital

Documents

Group4 NewService Healthcare 1