3. Rapid Expansion….
3
Healthcare is one of India’s largest sectors, in terms of revenue and
employment, and the sector is expanding rapidly.
The sector is more than $34 billion, translates to $34 per capita, or
roughly 6% of GDP.
This year, India’s healthcare sector is projected to grow to nearly $40
billion.
The private sector accounts for more than 80% of total healthcare
spending in India.
One driver of growth in the healthcare sector is India’s booming
population
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5. Expanding Middle Class-An opportunity
5
By 2025, an estimated 189 million Indians will be at least 60 years of
age—triple the number in 2004, thanks to greater affluence and better
hygiene.
The growing elderly population will place an enormous burden on
India’s healthcare infrastructure.
Expanding middle class-
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6. Changing Scenario of Service
6
More women are entering the workforce as well, further
boosting the purchasing power of Indian households-
changing composition of healthcare sector workforce.
Many of these women are highly educated: the ratio of
women to men who have a college degree or higher level
of education is 40:60
Lifestyle diseases are faster than infectious diseases in
India
Result - increase in cost per treatment, wellness programs
targeted at the workplace.
Could help to reduce the rising incidence of lifestyle
diseases.
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7. 7 Service Marketing Mix…
In Different view…
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8. 8
Price-
The government uses price controls to ensure that vital
drugs are affordable to the Indian population. It is an
ongoing challenge to balance the commercial interests
with the broader social objective.
Physical environment-
The physical infrastructure is woefully inadequate to
meet today’s healthcare demands, much less tomorrow’s.
Of the 15,393 hospitals in India in 2002, roughly two-
thirds were public.
SLIMS 10/20/12
9. 9
Place-
The number of public health facilities also is inadequate.
For instance, India needs 74,150 community health
centres per million population but has less than half that
number. In addition, at least 11 Indian states do not have
laboratories for testing drugs, and more than half of
existing laboratories are not properly equipped or staffed.
SLIMS 10/20/12
10. 10
Place
Telemedicine—the remote diagnosis, monitoring and
treatment of patients via videoconferencing or the
Internet. Telemedicine is a fast-emerging trend in India,
supported by exponential growth in the country’s
information and communications technology (ICT) sector,
and plummeting telecom costs.
Many hospitals have developed public-private
partnerships (PPPs), among them Apollo, AIIMS, Narayana
Hridayalaya, Aravind Hospitals and Sankara Nethralaya
for Telemedicine.
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11. Do Bharat baste hai India mein…
11
Process
The healthcare divide- When it comes to healthcare, there
are two Indias: the country that provides high-quality
medical care to middle-class Indians and medical tourists
(25% Indians), and the India in which the majority of the
population lives with no access to quality care.
Mission- the government is working to increase the
capabilities of primary medical facilities in rural areas-
free medicines.
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12. 12
Promotion
The emergence of India as a destination for medical
tourism leverages the country’s well educated, English-
speaking medical staff, state-of-the art private hospitals an
diagnostic facilities, and relatively low cost to address the
spiralling healthcare costs of the western world.
Western tourists coming to India to pursue Ayurveda
(Kerala).
SLIMS 10/20/12
14. Political Analysis:
The government is reducing its hold on
subsidies.
There are particular pressure groups which tend
to have an influence on government hospitals
The cost of medicines also tends to affect
hospitals besides affecting the pharmaceutical
industries
Relationships between neighboring countries
also affect the hospital sector
15. 15
Economic Analysis:
Increase in income would lead to an increase in
the standard of living. Thus people’s lifestyles
changes and health is better understood. Thus
there is a room for specialized treatment,
doctors, and hospitals
Government has made loans easily available and
thus people with limited means could avail
better/specialized treatment
SLIMS 10/20/12
16. 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 reserved
for poor people.
Look after the needs of local poor people.
Teach hygiene, sanitation among the poor masses.
Safe disposal of hospitals wastes like used injection
needles, waste blood etc. and taking due care of
environment.
Spreading awareness about various diseases through
campaigns and free medical check ups.
17. 17
Technological Environment Analysis:
Breakthrough innovation in the field of specialized
equipment
Communication has managed to bridge the gap
between places located at long distances
Test tube babies
Mobility of medical services
Mobile phones, credit cards (for payment purposes)
etc have made doctors and medical facilities easily
available
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18. CHARACTERISTICS OF
HOSPITAL INDUSTRY
1) Intangibility: Health care services being highly
intangible, to beat this intangibility the irony of modern
marketing takes place such as use of more tangible
features to make things real and believable.
Ways to overcome this drawback:
Visualization: The industry has to make available
visualization so that, search and experience qualities are
crystallized.
E.g. Press releases, distribution of brochures and
leaflets, newsletters, digital marketing and media
campaigning.
20. 2) Inconsistency: Quality of service offered differs from one extreme to
another. This is because of total dependence on human interactivity or
playing human nature, i.e. because human beings can never mechanize
or replicate themselves.
Ways to overcome this drawback:
Training: A scheduled Training of the employees in respect of the
work/service can prove to be the best solution to this drawback.
E.g. American Medical Association makes it mandatory for its member
doctors to undergo 6 weeks of training every year or 6 month of
training every 6 years.
Automation: The service providers analyze that, human quality
deteriorates with repetition of work; this has an ill effect during the
final delivery of the service.
E.g. Automatic blood testing equipments ensuring safety and accuracy
21. 3) Inseparability: Service transaction becomes unique because it
mandates, during transaction, the physical presence of the provider
and the consumer.
Ways to overcome this drawback:
Training: This is the best way out for the setback. As the provider of
one service can not be made available at two different places at the
same time if the situation demands so, unlike, in the case of products
where the producer of the same need not be present at all times where
the transaction takes place.
E.g. Wockhardt & Duncans Gleneagles International as set up a
dedicated teaching centre for paramedics, particularly, nurses and also
provide higher-end courses for doctors.
22. 4) Perishability: Services are intangible, they cannot be
packed & neither can be stored nor can they be
inventoried. The implication is that the service has to be
produced and consumed instantly; there is no scope of
storage.
Ways to overcome this drawback:
Managing demand & supply: That is to say that, there
has to be provision for all sorts of stipulations at all times
to the greatest possible extent.
E.g. Service developments according to market needs.
23. Service Flower
CORE PRODUCT
Treatment of human ills
EXPECTED PRODUCT
Infrastructure to support reasonable number of beds
Operation theatres
Equipments – like Cardio-respiratory supportive equipment
AUGMENTED PRODUCT
Ambience:
Central Air-conditioning
Automation equipments (X-Ray Scanners, Printers, Photo Scanners,
etc
32. 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
33. Testimonial
Our stay at the Hospital has been excellent.
Our room has been kept clean by men and women who
were 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
34. 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
35. TECHNOLOGIES IN HOSPITAL
INDUSTRY
• Same day OPD
• Online reports
• Imaging/ MRI Scan
• Key Hole Surgery
• Medical transcription
• Biotechnology
• Nanotechnology
• SST: Self checking Machines/ equipments
36.
37. MAJOR CORPORATE PLAYERS
The Apollo Group of Hospitals
Fortis Healthcare
Max India
Escorts
Wockhardt & Duncans Gleneagles International
38. MEDICAL TOURISM
Medical tourism (also called medical travel, health tourism or global
healthcare) is a term initially coined by travel agencies and the mass
media to describe the rapidly-growing practice of traveling across
international borders to obtain health care.
Such services typically include elective procedures as well as
complex specialized surgeries such as joint replacement (knee/hip),
cardiac surgery, dental surgery, and cosmetic surgeries.
As a practical matter, providers and customers commonly use
informal channels of communication-connection-contract, and in such
cases this tends to mean less regulatory or legal oversight to assure
quality and less formal recourse to reimbursement or redress, if
needed.
39. • Leisure aspects typically associated with travel and
tourism may be included on such medical travel trips.
• Prospective medical tourism patients need to keep in
mind the extra cost of travel and accommodations when
deciding on treatment locations.
• Factors that have led to the increasing popularity of
medical travel include the high cost of health care, long
wait times for certain procedures, the ease and
affordability of international travel, and improvements in
both technology and standards of care in many countries.
40. 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
private health 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 public
involvement in understanding health issues.
42. • Strengths
1. Low cost of production.
2. Large pool of installed capacities
3. Efficient technologies for large number of
Generics.
4. Large pool of skilled technical manpower.
5. Increasing liberalization of government
policies.
43. 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. Globalization
12. Easier international trading.
13. New markets are opening.
44. 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 patent
regime.
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''s
population).
7. Very low level of Biotechnology in India and also for New
Drug Discovery Systems.
8. Lack of experience in International Trade.
9. Low level of strategic planning for future and also for
technology forecasting.
45. Threats
1.Containment of rising health-care cost.
2. High Cost of discovering new products and
fewer discoveries.
3. Stricter registration procedures.
4. High entry cost in newer markets.
5. High cost of sales and marketing.
6. Competition, particularly from generic
products.
7. More potential new drugs and more efficient
therapies.
8. Switching over form process patent to product
patent.
46. In few words...
46
The Indian healthcare sector can be viewed as a
glass half empty or a glass half full. The challenges
the sector faces are substantial, from the need to
improve physical infrastructure to the necessity of
providing health insurance and ensuring the
availability of trained medical personnel with the
opportunities available equally.
SLIMS 10/20/12
