Medical Service and Business Service
Medical Service and Business Service
Medical Service and Business Service
ON
ANALYSES OF MEDICAL SERVICES
AND BUSINESS DEVELOPMENT
MARKETED
BY
COLUMBIA ASIA HOSPITAL
FOR THE PARTIAL FULFILLMENT OF THE
REQUIREMENT
FOR THE AWARD OF
Master Of Business Administration
UNDER THE SUPERVISION OF
Mr.Abishek Singh Chauhan
SUBMITTED BY
Kailash Chandra Upadhyay
CERTIFICATE
This is to certify that the project work done on ANALYSES OF MEDICAL SERVICES AND
BUSINESS DEVELOPMENT MARKETED BY COLUMBIA ASIA HOSPITAL is a bonafied
work carried out by Mr. Kailash Chandra Upadhyay under my supervision and guidance. The
project report is submitted towards the partial fulfillment of 2 year , full time Master Of
Business Administration in UTTARANCHAL UNIVERSITY DEHRADUN.
This work has not been submitted anywhere else for any other degree/dimploma. The original
work was carried during 09/06/2014 to 01/08/2014 in COLUMBIA ASIA, GURGAON.
ACKNOWLEDGEMENT
DECLARATION
This is to certify that the project titled ANALYSES OF MEDICAL SERVICES
AND BUSINESS DEVELOPMENT- To understand the Business Development
Model-International Patient Services of a hospital is a bonafide work done by
Mr. Kailash Chandra Upadhyay, Enrollment Number: 22051314024 in partial
fulfillment of the requirements of MBA Degree and submitted to Uttaranchal
University Dehradun.
I also declare that this project is a result of my own efforts and it has not been
copied from anyone. I have taken only citations from the literary resources which
are mentioned in the Bibliography section.
This work was not submitted earlier at any other university or institute for the
award of the degree.
Place- Gurgaon
TABLE OF CONTENT
Serial
NO.
i
CONTENTS
Authorization
ii
Acknowledgement
iii
Declaration
iv
Abstract
Introduction
Company Profile
Organization Profile
Hospital Marketing
4.1
Types Of Marketing
4.2
Referral Marketing
4.3
Institutional Marketing
PAGE
NO.
5.1
IPS Channels
5.2
Main Text
6.1
6.2
6.3
6.4
Pilot Research
6.5
6.6
SWOT Analysis
PEST Analysis
10
Conclusion
11
Recommendation
12
ABSTRACT
Lack of healthcare facilities for urban population and medical tourists and
economic advantages associated with it have influenced government to open the
gates for Private players to invest in the sector. Last few years have witnessed a
stiff competition in the sector creating pressure on management to sustain the
profitability. The role of Marketing in Hospitals has become crucial in keeping the
balance sheet figures positive. Today hospitals are not just about treating patients
at govt. hospitals or a few Pvt. State of the art Hospitals, today its a fight for
patients among Pvt. Hospitals. As the demand and supply in hospital sector is
achieving equilibrium in Delhi/NCR with 45 NABH accredited, 39 Govt. hospitals,
and infinite good nursing homes and referral centers, the pressure of business
development and sustainability is continuously mounting on marketing
departments of respective hospitals.
Further with the growth in the sector of medical tourism in India, the need for
global healthcare marketing has risen extremely during the past few years. The
patients and prospective patients are becoming quite aware and better educated
about the various developments taking place in the healthcare industry. They are
able to take knowledgeable decisions regarding medical services or products with
the help of professionals and internet.
The International Patient Services divisions; also known as IPS divisions of
hospitals, are competing strongly to attract these International Patients to their
respective hospitals. Big players like Apollo, Fortis, Medanta, Max, B.L Kapoor
(BLK), and others are spending a lot on marketing themselves in the arena of
Medical Tourism. The marketing in IPS is witnessing new discoveries ranging
from high commission to medical practitioners and healthcare facilitators to
referral hospitals in less developed nations. All the hospitals in India and other
Asian countries have realized the hidden potential of medical tourism; they would
like to take advantage of this opportunity before it achieves its declining stage of
Life cycle.
INTRODUCTION
MARKET SEGMENTS
Of the total healthcare revenue in the country, hospitals account for 71 per cent.
There is a very large market potential in India. Only 20% of this industry potential
has been tapped so far. The government cannot afford to spend the necessary
amount and hence it opens up a large area for private investors. The factors for the
boom of this industry are more options in healthcare financing, growing economy,
saturation of other sectors like IT and retail and the different models of healthcare
delivery. The key players of this industry (on basis of number of beds) are
Columbia Asia Hospitals, Artemis Healthcare, Medanta, Apollo, Fortis, Arvind
Eye care, Max Hospitals etc. The regulators of this industry are Government of
India, Directory of Health and Family Welfare, Ministry of Health and Family
Welfare, Indian Council of Medical Research, Central drug Standard Control of
Organization.
The growing population with a much deeper pockets and low government
participation has led to higher demands where people are willing to pay high costs
for proper medical care. Indias unmet demand for healthcare facilities, rapidly
changing demographics, increasing private spending on healthcare, and a readily
available intellectual pool are fuelling the growth of the healthcare industry and
making it highly attractive for investors.
Columbia Asia hospitals are clean, efficient, affordable and accessible. The
innovative design of the hospitals, from their manageable size to their advanced
technology, is focused on creating positive experience for patients.
The first hospital in India commenced operations in 2005 in Hebbal - Bangalore.
Currently Columbia Asia operates seven multispecialty hospitals, one referral
hospital and a clinic. The group has presence in Bangalore, Mysore, Kolkata,
Gurgaon, Ghaziabad, Patiala and Pune.
Mission
Columbia asia is pledge to deliver effective and affordable medical services in a
clean and caring environment
VISION
To build the best managed healthcare company in Asia.
MOTO
Costomer First
PEOPLE
We hire the best from healthcare and other industries, invest in training the
employees and have numerous rewards and recognitions for them
ORGANIZATION PROFILE
Columbia Asia Hospital Palam Vihar, Gurgaon, is a 90 bed multi-specialty
facility situated in an upscale locality of the National Capital Region. The hospital
began its services in July 2008 and has already become a preferred healthcare
service provider for the residents and corporate entities of Gurgaon.
The hospital offers a wide range of clinical services such as Obstetrics &
Gynecology, Internal Medicine, General Surgery, Pediatrics, Ophthalmology, Ear,
Nose & Throat, Urology, Gastroenterology, Dermatology, Orthopedics and Plastic
Surgery, Cardiology, Orthopedics, Neuro & spine surgery, Pulmonology. Qualified
and experienced medical personnel and technicians ensure healthcare delivery of
the highest standards.
Columbia Asia Hospital Palam Vihar is today considered as one of the best
hospitals in Gurgaon. The hospital has international standard infrastructure and
follows globally benchmarked standards of medical, nursing and operating
protocols and is rapidly becoming the preferred healthcare destination for
International Patients.
STRENGTHS
-designed room
SERVICES
24-Hour services
SPECIAL CLINICS
linic
PREVENTIVE HEALTHCARE
- between 30 to 40 years
- above 40 years
- Senior Citizens
screening
- below 30 years
OTHER SERVICES
Audiology
-to-Business (B2B):
B2B model describes commerce transactions between businesses. Columbia Asia
Hospital follows this business to business transaction. Under this comes the
following:
Vendors: Who are the suppliers those contribute in the supply chain of the
enterprise.
Consultants: Who are the professionals (Doctors) those provide the expert
advice in a particular domain.
-to-Consumer(B2C):
B2C (sometimes also called Business-to-Customer) describes activities of
businesses serving end consumers with products and/or services. Columbia Asia
Hospital serves the patients and maximizes the value of the transaction. It has
created a brand identity through repetition and imagery.
Columbia asia
Hospitals USP has
always been evidence
based medicine- the
conscientious, explicit
and judicious use of
current best evidence
in making decisions
about the care of
individual patient
HOSPITAL MARKETING
Hospital marketing this term usually earns criticism of non-marketers who relate
it with the negative aspects of marketing vis--vis selling of the most basic
necessity of 21st century i.e. Healthcare, but an insight into the requirements
dilutes the doubts.
In this highly globalized and competitive environment, any organization,
irrespective of its principles, motives, and goals, cannot survive without marketing.
Today, healthcare is not confined to stethoscopes, medicines and injections only; it
has emerged into an experience.
Today, when we are ill, we want to know that we have a doctor whose technical
knowledge and skills we can be sure of, on whose honesty we can rely and who
will treat us empathetically with the respect and courtesy to which we are entitled.
We need to be sure that the hospital or primary care team to which our doctor
belongs works effectively and safely, so we can be assured that we are getting
good quality care. And we need good access to care. So stated Sir Donald Irvine
President GMC (General Medical Council, UK) in 2003
With such advancements in patients expectations, it becomes inevitable for
Hospitals to acquaint seekers regarding their services and how different and
beneficial they are from the existing and other players. Product differentiation,
Segmentation, and Positioning of Hospitals play a major strategic role. Over and
above, when we are dealing with the MTV generation, who want everything
colorful and catchy, we cannot ignore modern marketing strategies like Integrated
Marketing Communication.
INTERNAL MARKETINGInternal marketing provides all information which is important for the patient
inside the hospital. Brochures and leaflets play key role in presentation of the
hospital information and the customer care help desk is again an important role to
guide the patient and attendants to information of treatment and expertise of
doctors treatment. Hospital services like House-keeping, nursing care also play
important role to increase the business through their best customer care services to
the patients which is responsible for word of mouth publicity.
Internal Marketing is a process which occurs within a company or organization
whereby the functional process aligns motivates and empowers employees at all
management levels to deliver a satisfying customer experience.
EXTERNAL MARKETING
It is all about marketing, the hospital does to outsiders, the various target
audiences, through strategies like International Medical Camps, Continuous
Medical Education (CMEs) for referral doctors, health camps for general public or
tie-ups with corporate. Mostly, Hospitals concentrate on marketing to sustain the
business and make it visible to people with medical needs and requirements. It
includes Visibility in community, Insurances and TPAs (Third Party
Administrators), Corporate Associations, Medical Marketing, and International
Business.
HOSPITAL
MARKETING
REFERRAL
INTERNATIONAL
INSTITUTIONAL
PATIENT
SERVICES
HEALTHCARE
FACILITATORS
HEALTHCARE
MEDIATORS Individuals
INTERNATIONAL
TPAs
CORPORATE
(General
Physicians)
TPAs
REFERRAL MARKETING
70-80% of all patients follow their GPs [General Physicians] suggestion directly or
indirectly while choosing a hospital and up to 50% of all hospital admissions are due to a referral
of regional doctors. Direct referral marketing is a key to long term success for private hospitals.
GPs already referring patients to a hospital as well as potential new doctors have to be, and stay
convinced of the good performance of the hospital.
There are four criteria which mainly influence a doctor to choose a particular hospital: his
or her experience with the hospital so far, personal contacts, the reputation of the doctor treating
the patient and finally the communication and organization between hospital and GP. At the
same time, doctors want to be appreciated as important customers for the hospital and treated
accordingly, sometimes hospitals often neglected to take into consideration in the past.
Consequently, this means excellent prospects to acquire, keep and manage new referral networks
by direct marketing.
INSTITUTIONAL MARKETING
THIRD PARTY ADMINISTRATORS
TPAs are representatives of health insurance companies who approve
requests and settle claims (cashless & reimbursement).
Third Party administrators (TPAs), as the name suggests act as third party
facilitators and managers for the health insurance policies. They are the
administrators that function between the insurer (insurance company) and the
insured (who buys the policy). The TPAs role is very crucial as it functions as a
gatekeeper for the incoming of applications, claim, etc. and outgoing of privileges,
claim settlement, etc.
CORPORATE
Corporate marketing can be seen as more of a guiding philosophy than a function
at any department. It can be used as an overarching or umbrella term covering the
interrelating activities associated with managing various corporate level concepts
including organizational identity, corporate identity, corporate branding, corporate
reputation, corporate communication and corporate image spanning and
encompassing the whole corporation and its various stakeholders. Corporate
marketing also has a general applicability to entities, including corporations,
business alliances cities, government bodies etc.
Objectives of Corporate marketing: - Targeting the corporates, providing the
services at a reasonable cost, promoting the hospital services to the corporate, and
generate the revenue of the hospital
MARKETING RESEARCH FOR CORPORATE MARKETING
The purpose of marketing feasibility study is to assist a hospital in identifying
market competition, potential markets, and analysis to assess a business idea. It
needs both primary and secondary data to evaluate the local market conditions.
CORPORATE NEED
Corporate basically need to focus more about providing better healthcare services
to their employee in a reasonable costs. Thats why whenever any Corporate tie up
happens with any healthcare organization, corporate needs more discount in
Inpatient services along with Out- patient services. They want Basic health
cam, BIS (basic life support) training.
Healthcare
Facilitators
IPS
Channels
International
Healthcare
TPAs
Referrals
HEALTHCARE FACILITATORS
Healthcare Facilitator (HCF) is an agency with the team of professionals offering a
seamless combination of complicated arrangements within medical tourism.
HCFs mail the queries and medical records to IPS division of Colombia Asia Hospital
if the rates are approved, dates are decided & invitation letter is sent to patient
the policy, managing exclusions, deducting any amount as per the policy
guidelines, etc.
by the insurance company and thereafter the claim amount is released via the TPA.
BUPA INTERNATIONAL
CIGNA INTERNATIONAL
GMC SERVICES
PARIS
IHI
Denmark
INTE
INTERNATIONAL SOS
PRESTIGE INTERNATIONAL
SINGAPORE
USA
VANBREDA INTERNATIONAL
BELGIUM
per month)
OBJECTIVES:
To study the services provided to the patient by Columbia asia.
To analyse the demographic project of clients of Columbia asia.
Promoting the hospital services to corporate and referral marketing by
Columbia asia.
RESEARCH METHODOLOGY:
SIGNIFICANCE FOR THE RESEACHER
To facilitate and provide all the useful information of the referrals doctors to the Columbia asia
hospital.
RESERCHER DESIGN
SAMPLING METHODOLOGY
Sampling Technique: Initially, a rough draft was prepared keeping in mind the objective of
the research. A study was done in order to know the accuracy of the questionnaire. The final
questionnaire was arrived only after certain important changes were done. Thus my sampling
came out to be judgemental and convenient.
Sampling Unit:
The respondents who were asked to fill out questionnaire are the sampling units.
Sample Size:
The sampling size was restricted to only 50, which comprised of mainly doctors from different
specialty, of palam vihar gurgaon due to time constraints.
Sampling area:
The area of the research was palam vihar gurgaon, india.
MAIN TEXT -
FINDINGS
AREAS OF CONCERN
1. It can easily be inferred from the data that out of top ten countries (count-wise),
there is not even a single country from where revenue has increased as compared
to FY 12 (except Zambia and Pakistan, for there was no business from these
countries in FY 12).
2. Business has drastically dropped from countries like Iraq, U.S, Afghanistan and
Oman. Iraq a potential for some major hospitals like Apollo, Max, Artemis, and
B.L Kapoor; has dropped by 73.33 % as compared to FY 12. Afghanistan is even
worse with a 100% decrease in patients.
KEY AREAS TO FOCUS
1. Nigeria with a total of 131 International patients is obviously the key area to
focus but there also the figures are falling. There is a huge potential to tap and
capitalize into.
2. From just 1 patient from Iraq in FY 13 to 4 in FY 14 -shows that there are
patients in Iraq who are willing to come to Columbia Asia Hospital.
PLATINUM
Nigeria*
Kenya
Iraq
LEAD
U.S
European
Specialty-wise analysis
GOLD
Afghanistan
IRON
Oman
Uzbekistan
AREAS OF CONCERN
1. ENT/ Head and Neck: - Despite of growing demand for Cochlear implants and
other specialty associated treatments, the figures have slumped for the specialty.
2. Neurology: - The Company recently organized a camp for Neurosurgery in Nigeria.
The specialty carries a lot of potential and should be promoted.
OPPORTUNITIES
1.ORTHOPEDIC in Nigeria
Channels/Sources: analysis
AREAS OF CONCERN
1. Patient count and revenue from High Beam Global, a medical facilitator is
decreasing drastically. Their increasing involvement with other hospitals like
Artemis, Nova, BLK, and others should be a major concern for Columbia
Asia.
2. Patient count and revenue from Sahara are also decreasing by a major
fraction.
OPPORTUNITIES
1. Safe Med Trips revenue share is increasing, although the count figures are same.
The company must maintain good relations with Safe Med Trip (SMT) in order to
sustain the business.
2. Dr. Ashoks share has seen a tremendous growth, from just 1 patient in 2011-12 to
11 patients in 2013-14 the revenue share has also increased by INR 21,91,628
PILOT RESEARCH:
To analyze the factors attracting International Patients to India for medical treatment a
questionnaire was prepared to be filled up by top hospitals in Delhi/NCR which are
providing Medical facilities to International Patients opting India as a destination. The
participating Hospitals were:
FINDINGS
The main factors which these hospitals find for attracting International Patients to India are
namely:
Availability - lack of medical specialties in their patients own countries
Affordability- Expensive treatment in patients own countries
Competency- Competent doctors in India
Quality- World-class medical facilities in India
When Hospitals were asked to rank the factors responsible for attracting International
Patients to India, 75% agreed strongly that these patients come to India for treatment due to
non-availability or lack of medical specialties in their own countries. E.g. there is only one
1.5 tesla MRI machine in Nigeria (at PRIMUS International Super Specialty Hospital,
Lagos, Nigeria). In Nigeria only 51 open Heart Surgery procedures were done between
August 2004 and December 2011 which makes it around 9 surgeries annually, that too with
little success rate whereas in India around 80,000 open heart surgeries are performed
annually in 175 centers and that too at comparatively affordable prices.
Similarly, up to 75% also agreed that these patients come to India due to expensive
treatment in their home countries. A cross country comparison of treatment costs in U.S
dollars should make it clear :-
Comparative competency and fair practices of Indian Doctors are other factors for attracting
these patients to India.
Lets get it clear from a story published in Deutsche Welle (DW):"The Afghan doctors
diagnosed a tumor and operated right away," said Mohammad Nabi from his bed at a hospital in
Delhi, pointing to a scar on his neck. After the operation, friends had advised the 56-year-old
from Balkh in northern Afghanistan to seek treatment in India. Doctors at the hospital in Delhi
told him that he never had a tumor, instead merely swollen lymph nodes. "I was tricked.
Unfortunately, that's common practice in Afghanistan," Nabi said, visibly upset.
The CT imagines clearly manifests the shadows that are created by a tumor and a tumor can be
differentiated from a plain swelling of the lymph nodes. Unfortunately, Afghanistan does not
have competitive and qualified radiologist to read CT scan as well as Magnetic Resonance
Imaging (MRI) to count on them.
HOSPITAL
SPECIALTY
1
SPECIALTY
2
SPECIALTY
3
SPECIALTY
4
Columbia
Asia
Hospital,
Gurgaon
Orthopedics
Plastic/
Reconstructive
Obstetrics
ENT/ Head/
Neck
Neurosurgery
Spine and
Neurosurgery
Oncology
Cardiac
Spine
Orthopedics
(Knee)
Oncology
Gastroenter
ology
BLK
Super
Specialty
Hospital,
New Delhi
Bone Marrow
Transplant
Max
Healthcare
Hospital,
New Delhi
Brain
Orthopedics
Nova
Specialty
Hospitals,
New Delhi
Orthopedics
IVF
Urology
Laparoscopy
Rockland
Hospital,
New Delhi
Orthopedics
Cardiac
Oncology
Urology
And
Nephrology
Indraprast
ha Apollo
Hospital,
New Delhi
Cardiac
Fortis
Healthcare
Shalimar
Bagh, New
Delhi
Orthopedics
(Arthroscopy)
(KneeTransplant)
Metro
Heart
Hospital,
Lajpat
Nagar,
New Delhi
Interventional
Cardiology
Orthopedics
Brain and
Spine surgery
NonInterventional
Cardiology
Spine
And
Neurosurgery
SPECIALTY
5
Ophthalmology
Gynecology
And
Obstetrics
Gastroentero
logy
Oncology,
Nephrology,
Urology
Renal
Transplant
Cardiac
Oncology
Gastroenterology
Neurology
Pulmonary
AFGHANISTAN
Many Afghans are opting to get treated in India nowadays owing to the poor health care facilities
and services in their own country. Many cite that while Afghanistan has some big hospitals, the
medicines used for treatments are, in most cases, fake.
A report published by the international charity Medicines Sans Frontiers revealed that out of
every 5 Afghan patients who were interviewed had a close friend or family member who died
due to improper medical care in Afghan over the last one year alone.
These factors would probably explain the increasing numbers of Afghan medical tourists
arriving in India over the past few years, with numbers rising to nearly 32200 in 2013 from
26500 in 2012.
IRAQ
Years of war have literally destroyed Iraqi's once world-renowned healthcare system. The Iraqi
healthcare system used to be considered one of the best in the region, but today, millions of
Iraqis suffer from respiratory infections, formerly preventable diseases such as measles, and
malnutrition.
The basics are missing from Iraqi's healthcare facilities and hospitals these days, from
vaccinations to cardiac defibrillators. Meningitis, dysentery, and malaria have become the norm.
Hospital labs can't perform tests, and lack of drugs and basic supplies severely hamper
physician's efforts to cure patients. Medicine, syringes and IV fluids are often only available
through the black market.
Because of the dire situation in Iraq, millions of Iraqis are scrambling and saving to travel to
foreign destinations for quality and affordable medical care. One of the most popular
destinations for Iraqis is India. Iraqis are patient as possible while they wait for passports and
travel permits to venture beyond their war-ravaged borders for healthcare. Children and adults
requiring surgeries are able to receive affordable care in India for conditions in cardiac,
orthopedic, vision and dental care, making any and all sacrifices more than worth the effort.
NIGERIA
It has been realized by Nigerians who can afford to seek medical treatment abroad, that India
offers them cheaper and more qualitative treatment. For instance, the cost of surgery can be
onetenth of what is in the United States or Western Europe, and sometimes even less. A heartvalve replacement that would cost $200,000 or more in the US, for example, goes for $10,000 in
India- and that includes round-trip airfare and a brief vacation package. Similarly, a metal- free
dental bridge worth $5,500 in the US costs $500 in India. Cosmetic surgery savings are even
greater: A full facelift that would cost $20,000 in the US cost about $1,250 in India. The most
popular treatments sought in India by Nigerian medical tourists are alternative medicine, bonemarrow transplant, cardiac bypass surgery, eye surgery and orthopedic surgery. India is known
in particular for heart surgery, hip resurfacing and other areas of advanced medicine. To this end,
Government of India has introduced a medical visa for foreigners who come to India for
medical treatment and are willing to be there for extended period. The medical visa would be
admissible to all foreigners seeking Medicare in recognized specialty hospitals or treatment
centers. The initial period of such a visa will be one year or for the period of treatment,
whichever is less.
DELHI
1. Action Cancer Hospital, New Delhi
2. B.L Kapur Memorial Hospital, New Delhi
3. Batra Hospital, New Delhi
4. Bhagwati Hospital, Delhi
5. Chacha Nehru Bal Chikitsalaya, New Delhi
6. Dharamshila hospital and Research Center, New Delhi
7. Escorts heart institute and Research center, New Delhi
8. Fortis Hospital, Shalimar Bagh, New Delhi
9. Holy Family Hospital, New Delhi
10. Indian Spinal Injuries Center, New Delhi
11. Indian Spinal Injuries Center, New Delhi
12. Institute of Human Behavior & Allied Sciences (IHBAS), New Delhi
13. Institute of Liver and Biliary Sciences, New Delhi
14. Jeewan Anmol Hospital, New Delhi
15. Jeewan Mala Hospital, New Delhi
16. Khandelwal Hospital & Urology Centre, New Delhi
17. Max Super Specialty Hospital, New Delhi
18. Max Superspeciality Hospital, Shalimar Bagh, New Delhi
19. Metro Heart and Cancer Institute, New Delhi
20. Metro Heart Institute with Multispecialty, Faridabad
21. Metro Hospital & Heart Institute, Lajpat Nagar, New Delhi
22. Moolchand Hospital, New Delhi
23. National Heart Institute, New Delhi
24. Park Hospital, New Delhi
25. Primus Super Specialty Hospital, New Delhi
26. Pushpawati Singhania Research Institute, New Delhi
27. R G Stone Urology & Laparoscopy Hospital, Kailash Colony, New Delhi
28. Rajiv Gandhi Cancer Institute & Research Centre, New Delhi
29. RLKC Hospital, Metro Heart Institute, New Delhi
30. Rockland Hospital, New Delhi
31. Saket City Hospital, New Delhi
32. Saroj Hospital & Heart Institute, Delhi
33. Sir Ganga Ram Hospital, New Delhi
NOIDA
1. Apollo Hospitals, Noida
2. Delhi Heart and Lung Institute, Noida
3. Escorts Hospital and Research Center, Noida
4. Fortis Hospital, Noida
5. Kailash Hospital and Heart Institute, Noida
6. Metro Hospital and Heart Institute, Noida
COMPANY BACKGROUND
Name
Division
Geographic Areas
Served
Revenue FY 2014
No. of International
Patients
Employees
Main Competitors
INR 1,34,63,666
(IPS-In Patients)
1+1
From revenue of INR 26,379,330 from 109 International Patients in FY 2012 the figures have
declined to INR 13,463,666 from 55 International Patients in FY 2014. This describes a slump
of 48.96% in Revenue and 49.54% in Patients count, from FY 2012 to FY 2014.
With strong marketing campaigns and govt. lobbying by financially strong hospitals like
Medanta, Apollo, Fortis and Max Healthcare, It has become really tough for 100 bedded
hospitals, like Columbia Asia Hospital, in Delhi/NCR to attract patients from other countries.
Over and above, being financially strong and with more manpower these hospitals manage to
maintain good relationships with Healthcare Facilitators, Healthcare Mediators, and
Consultants.
STRENGHTHS (Moderate)
OPPORTUNITIES (High)
WEAKNESSES (High)
PESTanalysis for Columbia Asia Hospital, International Patients Services division covers the
political, economic, social, and technological. The overall analysis helps the organization to cater
its clients/patients accordingly.
The analysis also prepares a theoretical map to face the challenges in order to grow.
P-Political
E-Economical
S-Socio-Cultural
T-Technological
Political:
1.Legislation for Accreditation of Healthcare institutions like NABH to make them on par
with International standards
2. Extension of Visa period for International Patients.
To encourage International Patients in India Govt. has extended the time limit of
Medical Visas to 1 year; previously it used to be 3 months. This is further extendable by
another 1 year
3. Regulatory and Tax reforms.
The Govt. is providing a variety of incentives, including lower import duties and higher
depreciation rates on medical equipment, as well as expedited visas for International
Patients.
4.Since 2001 there has been a 100% FDI in Healthcare Sector.
5.Govt. encourages Public-Private Partnerships (PPP) in healthcare sector.
Economic Environment:
1.Lack of Govt. Spending.
Since the Govt. is struggling to provide basic health services to rural and semi-urban
population, there is a vast room for private healthcare investors to attract domestic and
International Patients seeking world-class facilities.
Extensive marketing by Private hospitals attract International Patients and Govt.
hospitals fail to play a major role in Medical tourism.
Socio-Cultural Environment:
1. Increasing elderly population
A growing population of elderly people in Nigeria can be credited for a huge number of
Hip and Total knee replacement and Spinal disorders surgeries in Indian Hospitals.
Similarly with increasing number of elderly people in Europe, figures for Cardiac
surgeries performed on International Patients in India are also increasing.
2. Geographical reach
3. Increasing demands for specialty services
Technological Environment:
1. Use of Information Technology
2. Role of Telemedicine
Telemedicine is the use of telecommunication and information technologies in order to
provide clinical health care at a distance. It helps eliminate distance barriers and can
improve access to medical services that would often not be consistently available in
distant rural communities. It is also used to save lives in critical care and emergency
situations.
3. Pre and Post Treatment Consultation using apps like Skype Conversation with
International Patients.
4. If India is attracting so many International Patients, an important reason for that is
technological advancement and affordability of the same. In Nigeria there is just one 1.5
tesla CT-scan machine, imagine a nation of 168.8 million (2012 statistics) with just one
advanced CT-scan machine. This is the reason Medical treatments in other countries are
so expensive.
BARGAINING POWER OF
CUSTOMERS (+)
-Due to very little price
sensitivity and lesser number
of substitutes (existing), Power
of driving down the prices
does not vest with the patients.
COMPETITIVE RIVALRY
THE INDUSTRY
-)
WITHIN
(
Competitive Rivalry is extremely
high which exerts downward
pressure on prices. If Hospital
increases prices it is easily robbed
of Patients count.
Corporate lobbying by financially
well off organizations makes
business tougher for smaller
organizations.
BARGAINING POWER OF
SUPPLIERS (-)
-Large number of Hospitals
offering International Patient
services makes it tougher for
hospitals to drive up prices. The USP of International
Patient
Services in India stands for
AFFORDABILITY, so driving
up prices too much doesnt
make sense.
-For specialties like Renal &
Liver
transplant,
Incisive
Cardiology
Hospitals may drive up the
prices.
THREAT OF
SUBSTITUTES (-)
-International Patients are
shifting towards Homeopathy,
Ayurveda, and Herbal
treatments due to safety factors.
-Countries like Malaysia,
Singapore, Turkey, and
Vietnam have also identified
the potential of Medical tourism
and begun the practice of
providing specialties at
competitive prices.
CONCLUSION
1. Columbia Asia Hospital, Gurgaon is facing immense competition from hospitals in
Delhi/NCR. Growing popularity of Artemis Health Institute Gurgaon, Medanta the
Medicity, Fortis Gurgaon, and Paras Hospital is dividing the market share into smaller
fragments.
2. The main factors attracting International Patients to Columbia Asia and other hospitals in
Delhi/NCR are Affordability, Availability, Competency, and Quality of Medical
facilities.
3. Medical facilitators are increasing in number in Delhi/NCR region so the network is also
spreading; as a result there has been an overall increase in number of potential medical
queries from International Patients.
4. Columbia Asia Hospital, Gurgaon is facing both internal and external competition. While
there has been a dispersion of International Patients to other hospitals, there have been
cases where patients opted for Columbia Asia, Bangalore as their preferred destination.
5. Revenue from international patients (In-Patients) has gone down by 48.96% as compared
to FY 2012 with an overall slump of 49.56% in total International Patients count.
6. Specialties like Plastic/ reconstructive and Neurology are losing counts and revenues
need to be pushed.
7. Orthopedics enjoys a major share of total revenue and count: approx. 26.61% of total
International Patient count and 35.72% of total revenue.
8. SAFE MED TRIP, a Delhi based Medical facilitating company is alone providing
patients worth 20.01% of total revenue.
9. High Beam Global, a Gurgaon based firm needs special attention, for the company has
good network in African countries, Iraq and Uzbekistan. HBGs contribution in overall
count and revenue is decreasing constantly and needs to be pushed.
10. Queries for treatments like TKR (Total Knee Replacement), Hip Replacement,
Neurosurgery and spinal, and Cochlear implant are increasing.
RECOMMENDATIONS
SCAMPER ANALYSIS: SCAMPER is a six sigma tool, which stands for:
Substitute.
Combine.
Adapt.
Modify.
Put to other purposes.
Eliminate.
Reverse.
We can use the tool by asking questions about existing products/ services / people/ processes,
using each of the seven prompts above. These questions help us come up with creative ideas
for developing new products / services / people/ processes and for improving current ones.
In order to improve the existing, slumping, International Patients Division of Columbia Asia
Hospitals, I would like to use SCAMPER tools to identify the existing loopholes and improve or
improvise the concerned factors.
Substitute
Highlight the existing non-potential specialties with the potential ones.
If one looks at the figures, the trends show that the number of patients opting for Plastic/
reconstructive and gynecology are falling whereas specialties like Hip Replacement, Total Knee
Replacement, and Cochlear Implant are growing constantly. These specialties should be
promoted in potential countries at affordable and competitive prices.
Combine
Combine Corporate with International Patient Services; with Corporate MNCs having a
worldwide network of stakeholders and shareholders, a good relationship on that front can fetch
great business.
An understanding with Hospitality Corporates business model of Trident and Hyatt would get
some potential queries for IPS.
Adapt
Hospitals like Max, BLK (former B.L Kapoor Memorial Hospital), Fortis, Apollo etc. are
spending a lot on brand awareness in other countries like Iraq, Nigeria, Uzbekistan,
Afghanistan, Kenya as a result Columbia Asia faces immense threat and will have to increase
brand awareness and adapt to this situation. It should go beyond sales promotion to core brand
visibility.
With growing players in the field, Client Relationship with Healthcare Facilitators and Mediators
is also deteriorating, for they now demand more attention and engagement, physically as well as
financially.
Modify
In order to create more Value to International Patients following modifications to the existing
model are recommended.
a. Introduce a Lounge & Cuisines for International Patients Services Patients
feel more comfortable when they are surrounded with other International
Patients.
This helps in building word of mouth publicity, once they move back to their
countries and transparency in the process and consultation.
b. Increase the manpower from 1 IPS executive to 3 (2 executives + 1 Assistant
Manager) as Delhi/NCR has a strong potential for Medical Tourism and being
the only Columbia Asia Hospital in North India offering International Patient
Services, it deserves a strong attention.
For the increasing competition and slumping figures, the current hierarchy and
man power is not sufficient.
Eliminate
Eliminate the non-competitive referral tools as they are not up to market standards.
Reverse
More emphasis on Research and Development, and branding is required. R&D and Branding
should be started afresh considering trending concepts and eliminating the have become
histories concepts: Target New markets, smaller markets by focusing on trending specialties.
BIBLIOGRAPHY
Web Pages:
www.columbiaasia.com
www.indexmundi.com
Research Papers:
K.R Shanmugam (Madras School of Economics)
India Healthcare (McKinsey and Co.)
Medical tourism and role of TPAs (Dr. Prem Jagyasi)
Other References:
Name Of the
Supervisor
_______
d. Practicing since (Total practice)___________________(Year)
e. Average Consultation
fees:________________________________________
f. Address:___________________________________________________
________
2. No
Q.2. If answered yes to the above question; please ask the number of clinic
currently run by
the doctor along with the address.
No. of Clinic:___________________
Address: 1.___________________
2.___________________
3.___________________
Q.3. Are you also visiting some of the hospitals in the city?
1.Yes..
2. No
Hospital Name :
____________________________________________________
Hospital Name :
____________________________________________________
Q.5. How many admissions (hospitalization), on an average, do
you refer in a given month?
____________________________________________________________
___
Q.6. Could you share with us the main 3 factors considered by you
for suggesting a hospitals (for hospitalization cases) to patients.
1.
_______________________________________________________
_________
2.
_______________________________________________________
_________
3.
_______________________________________________________
_________
Q.7. Kindly share with us the kind of Healthcare cases you usually
receive. (please tick mark the oppopraite columns in the table
mentioned below).Also, please share with us the name of doctors /
hospitals to whom you refers these cases.
S.no.
Health concerns
1.
Orthopedics
2.
Gynecology
3.
Respiratory
4.
Neurology
Doctors
/Hospitals (to
whom you
refers cases)
5.
Nephrology(kidney)
6.
Cardiology
7.
Pediatrics(infants &
children)
8.
9.
Others