hospital as a service industry

Hospital Industry

Health care industry consists of

Protective care and nursing

Dentists and doctors

Pharmacies

Hospitals

Allied medical, health services

Expense on healthcare in India is 5.25% of GDP.

Only 12% of the scope offered has been tapped.

Hospital industry in India

Accounts for 5.2% of GDP.

Direct and indirect employment for 4 million people.

Anticipated to grow at 13% per year.

Expected to grow in size to 270000 crore by 2012.

• On the basis of the OBJECTIVE there are three types:1.Teaching cum research centres.2.General hospital for treating general ailments.3.Special hospitals for specialized services .

• On the basis of the OWNERSHIP, there are four types:1.Government hospital.2.Semi-government hospital.3.Voluntary organizations also run hospitals.4.Charitable trusts also runs hospitals.

• On the basis of PATH OF TREATMENT : 1.Allopathy 2.Ayurveda 3.Homeopathy etc.• On the basis of the SIZE 1.Teaching hospitals – 500 beds 2.District hospitals – 300 beds 3.Taluka hospitals – 50 beds 4.Primary health centers – 6 beds

Classification of Hospitals

PEST Analysis for Indian Hospital industry

• Political factors –• Healthcare has been a neglected field in India.

• Special assistance to private healthcare sector.

• Government has to give certain concessions to private health sector.

• Gets revenue in the form of tax.

• Economic Factors –• The Indian healthcare is the next boom in the country after the IT

euphoria.

• The amount of hospitals in India is very less when compared to the other developed countries.

• The World Bank can make available funds of around Rs 700 crore for state health systems and development projects.

• third party payment either in the form of Medical and Allied Insurance can boom private health care industry.

PEST Analysis for Indian Hospital industry

• Social factors –• Certain percentages of beds have to be kept for poor people.

• Open counseling and relief centers.

• Safe disposal of hospitals wastes.

• Spreading awareness about various diseases through campaigns and free medical check ups.

• Technical Factors –• IT is transforming the way in which health services are

delivered.

• The technologies today can support vast databases, network communications, quick distribution.

3 I’s of Hospital industry


Intangibility –

• Service has no physical attributes .•Impossible for customer to taste, hears, feel or smell before they actually use it.•The customers can’t really realize the service provided until they get well.• Need to provide tangible clues to make the service provided a success.•For e.g. the hospitals provide extra facilities like television, or then friendly personnel’s can make a difference.


StaffBuilding

Health care

Equipment Canteens

Friendly personnel



Inconsistency – Inconsistency occurs largely because of –

• Different service providers perform differently on different occasions.• Interaction between customer and provider may vary from customer to customer.• Standardization is hard to maintain. Every doctor is not the same and may not give the same diagnosis


Inseparability – • Inseparability means that the service can not be separated from the creator-seller of the service• the customer(patient) has to come up to the hospital to get the treatment.•the service is created and delivered simultaneously.•Services are perishable and can not be easily saved, stored or inventoried .•Costs are related to capacity utilization.• e.g. if a doctor is available but there’s no patient during that period, the fixed cost of the idle physicians salary is a high inventory carrying cost.

PRICING IN HOSPITALS

Are hospital prices reasonable???????????????????

Pricing in Government / Trust Hospitals

Hospitals need to invest a lot in sophisticated equipment and technologies to improve the quality of medical aid. most government hospitals are in deplorable condition the government regulations also close doors foe generating finance from internal sources The ultimate sufferers are the society and specially the poorer sections Since the wealthy sections have the options to avail the expensive medical services made available by the hospitals

Pricing in Private Hospitals

Cost based pricing: Price = Direct costs + overhead costs + profit margin. Competition based pricing Demand based pricing

The ultimate sufferers are the society and specially the poorer sections Since the wealthy sections have the options to avail the

expensive medical services made available by the hospitals

Differential pricing in the hospital industry

Externally (between 2 hospitals)

Internally (within a hospital)

Internally (within a hospital)

There is a price differentiation even between the two wards of the same hospital. There is difference between the general ward and special ward where the rooms are air-conditioned and extra services are provided Even the doctors visiting fees/consultation charges are different Sometimes if the patient is very poor then the doctor may halve his fees.

PEOPLE IN HOSPITAL

Physicians.Surgeons.Nurses.Other supporting staff.

P PEOPLE

Under hospital marketing mix people includes all the people involved in the service providing process which includes doctors, nurses, supporting staff etc. The earliest and best way of having control on the quality of people will be by approving professionally sound doctors and other staff.Hospital is a place where small activity undertaken can be a matter of life and death, so the people factor is very important.The patients in the hospitals are already suffering from trauma, which has to be understood by the doctors and staff .

Government Hospital:

In Indian government hospitals except a few almost all the hospitals and their personnel hardly find the behavioral dimensions significant. Even if the patients get the correct treatment they are often dissatisfied with the behavioral pattern of the staff.

Private Hospital:

They have pleasing manners and behave softly with the patients. They provide timely care and are present always in times of need.

P

Where, When, and How• Geographic locations served

• Service schedules

•Physical channels

•Electronic channels

• Customer control and convenience

PLACEPLACE

In case of hospitals the location plays a very important role. The kind of services a hospital is rendering is also very important for determining the location of the hospital.Example: Tata memorial hospital specializes in cancer treatment and is located at a center place unlike other normal hospitals, which you can find all over other places.

In a country like India which is geographically vast and where majority of the population lives in the rural areas place factor for a hospital plays a very important role.

A typical small village or town may be having small dispensaries but they will not have super specialty hospitals. For that they will have to be independent on the hospitals in the urban areas.

•Identify key activities in creating and delivering the service

•Distinguish between front stage (what customers experience) and back stage

•Chart activities in sequence

•Show how interactions between customers and Doctors are supported by backstage Hospital activities and systems.

•Establish service standards for each step

•Identify potential fail points

•Focus initially on “big picture” (later, can drill down for more detail in specific cases)

PROCESS

Process generally forms the different taskthat are performed by the hospital. The process factor is mainly dependant on the size of the hospital and the kind of service it is offering.

Government Hospitals

Private Hospitals

PRODUCT

•QUALITY LEVEL•ACCESSORIES•PACKAGING •PRODUCT LINE•BRAND NAME

GOV. HOSPITALS VS. PRIVATE HOSPITALS

PROMOTION

ADVERTISEMENTWORD OF MOUTHIMAGES OF THE FIRM

P

GOV. HOSPITALS VS. PRIVATE HOSPITALS

PHYSICAL EVIDENCE

Physical evidence can be in the form of smart buildings, logos, mascots etc a smart building infrastructure indicates that the hospitals can take care of all needs of the patients.

Government Hospital:Government hospitals have a huge building, but are not properly maintained; hence it creates a bad impression among its patients that the hospital is unhygienic.

Private hospital like Columbia Asia has got a smart building, which helps, in developing the minds of the people, the impression that it is the safest option among the different hospitals available to the people.

THE SERVICE MARKETING TRIANGLE

Company: Here, the hospital is the company that dreams up an idea of service offering (treatment) which will satisfy the customer’s (patient’s) expectations (of getting cured).

Customer: The patient who seeks to get cured is the customer for the hospital as he is the one who avails the service and pays for it.

Provider: Doctor, the inseparable part of the hospital is the provider, as he is the one who comes in direct contact with the patient. The reputation of the hospital is directly in the hands of the doctor. A satisfied patient is a very important word of mouth promotion for the organization.

P

THANK YOU

hospital as a service industry

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