Service Sector Management Health Care Sector

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Service Sector Management

HEALTH CARE SECTOR


BEFORE INDEPENDENCE

• HEALTHCARE HAS BEEN BASED ON VOLUNTARY


WORK

• MEDICINAL PROPERTIES OF PLANT AND HERBS


WAS PASSED FROM ONE GENERATION TO
ANOTHER
AFTER INDEPENDENCE
• GOVERNMENT OF INDIA LAID DOWN A STRESS ON
PRIMARY HEALTH CARE.

• GOVERNMENT INITIATIVE WAS NOT ENOUGH TO


MEET THE DEMAND.

• ALTERNATE SOURCES OF FINANCE WERE


CRITICAL FOR SUSTAINABILITY OF THE HEALTH
SECTOR.
ENTRY OF PRIVATE SECTOR
• GOVERNMENT ON ITS OWN WOULD NOT BE ABLE
TO PROVIDE MORE FACILITIES FOR HEALTH CARE.

• GOVERNMENT ALLOWED THE ENTRY OF PRIVATE


SECTOR TO REDUCE THE GAP BETWEEN THE
SUPPLY AND DEMAND FOR HEALTH CARE.
AND NOW……
• ONE OF THE LARGEST AND FAST GROWING
SERVICE SECTOR.
• REVENUES ACCOUNTS TO 5.2% GDP
• EMPLOYS OVER 4 MILLON PEOPLE
• BY 2012 REVENUE CAN REACH 6.5 TO 7.2% OF
GDP
• INDIA IS THE MOST PREFERED DISTINATION FOR
HEALTH CARE AMONG THE DEVELOPING
COUNTRIES
• Twenty eight for the destruction on the other side of
that
HOSPITALS
NURSING HOMES
FITNESS CENTERS
AMBULATORY SERVICES
MEDICAL EQUIPMENT
MANUFACTURERES
PHARMACEUTICALS
7 P’s of Hospital Services
PRODUCT

Types of services

Line services Auxiliary services

Supportive services
Product

 Line services:

1. Emergency services
2. Out-patient department (OPD)
3. In-patient services
5. Operation theaters (OT)
Product

• Supportive services:
1. Official laundry
2. Hospital medication
3. Blood bank
4. Pathology
5. Radiology
Product
• Auxiliary services:
1. Temple & mediitation
2. 24 hr chemist
3. Security arrangement
4. SEWA
Price

Differential pricing strategy

Externally Internally
Price
• Innovative pricing strategy:

Day care procedure

Delivering value
Price
Delivering value

• Traditional approach

• Modern approach
Place

• Avoid inconveniences

• Adequate transport & communication facilities

• Avoid congestion & atmospheric pollution


Promotion

Personal

Promotion
techniques
Impersonal
Promotion
Personal promotion i.e. word of mouth
Promotion
• Impersonal promotion:
1. Press release
Promotion

2. Bill boards
Promotion
3. In-film placement
Promotion
4. Check-ups through campaign
People
The objective of providing quality service
to patients can be achieved by:
• Motivating employees to be efficient, dedicated
and loyal to the organization.
• Providing regular on-the-job training of employees
to ensure continuous improvement in health care
• Utilizing services of professionally competent
medical consultants.
• Use of the latest technology.
Process
 Two different type of process for:

 Outpatient.

 Inpatient
Outpatient

Meeting doctor at
appointed time

Diagnosis

Treatment.

Simple medication
Inpatient.

The arrival of patient.


Joining phase
Registration.

Diagnosis.
The intensive consumption
phase Treatment.

Information about future


action

Discharge of patient
Detachment phase &
payment
Physical Evidence

Physical evidence is the environment in which


the service is delivered with physical or
tangible commodities and where the hospital
and the customer interacts.
Hospital Counter
Common Ward
Single Room
Emergency Room
Common Room
Dress Code
Certificates and Awards
SWOT ANALYSIS
STRENGTHS

• Low cost of production

• Specialization

• Infrastructure and Efficient technologies

• Large pool of skilled doctors

• Low pricing in public hospitals


WEAKNESS

• Highly fragmented leading to Price competition


• The Indian pharmacy companies are marred by the
price regulation by NPPA
• Competition for small healthcare centers
• Cost of treatment is not affordable
• Imitated Drugs
• Rural Healthcare – A cause of concern
• Low share of India in World Pharmaceutical
Production (1.2% of world production but having
16.1% of world's population).
OPPORTUNITIES
• Largely untapped market.
• Switching over from process patent to
product patent.
• Growing incomes and Growing attention for
health.
• Global outsourcing hub for pharmaceutical
products.
THREATS

• Containment of rising health-care cost

• Threats from other low cost countries like


China and Israel exist.

• The short-term threat for the pharmacy


industry is the uncertainty regarding the
implementation of VAT.
Public Hospitals vs. Private Hospitals

Public Private

1. Fully funded by 1. Owned by private people.


government
2. Service oriented 2. Profit oriented
3. They don’t do much 3. Huge promotion
promotion
4. Charge low fees 4. Are quite costly
5. Lacks good infrastructure 5. Infrastructure is well
maintained
6. Process of admission to 6. Comparatively easy
discharge is difficult. process
7. No personal or proper 7. Very good care of
care of patients patients
8. People i.e. doctors are
highly qualified as well 8. People i.e. doctors are
they staff interns experienced
Government’s Initiative

• Union Budget 2009: India to Spend $4.35 Billion on


Healthcare
• To encourage investment in the health care sector,
government of India has allowed 100% FDI under the
automatic route
• Reduction in custom tariffs on medical equipment
• Government has also announced tax holiday for five
years for the hospitals in rural areas
• Universal Health Insurance Scheme
RECENT DEVELOPMENTS

• Huge investments in R&D


• Constant focus by Government
• Medical Tourism
• The benefits of health Insurance is availed by just 30-40
million Indians which is expected to rise to 160 million by
2010
• Healthcare BPO is also growing fast. The services include
medical billing, disease coding, forms processing and
claims adjudication
• Increasing urbanization, rising health conscious attitude,
higher life expectancy
THANK YOU

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