Improving Revenue and Profitability: IFC, International Private Healthcare Conference, 2009

Improving Revenue and Profitability
The Max Healthcare Experience
IFC , International Private Healthcare Conference, 2009

1
Max Health care : An Overview
Max Healthcare Network N.C.R.
MAX HEART & VASCULAR INSTITUTE, Saket

Dec 2004; (South Delhi) ; ( 200 Beds) MAX SUPER SPECIALITY HOSPITAL, May 2006; (South Delhi) ; (200 Beds)
MAX HOSPITAL, Gurgaon N.C.R; (July 2007), (102 beds) MAX HOSPITAL , NOIDA N.C.R.; August 2002; (33 beds)
MAX Healthcare currently has the largest Penetration in NCR (National Capital Region) .
MAX BALAJI HOSPITAL, PATPARGANJ May 2005;(East Delhi),(154 Beds)
MAX HOSPITAL, PITAMPURA , North Delhi ; July 2007; (90 BEDS) MAX CENTRE Panchsheel South Delhi ; (November 2005) N.C.R.= National Capital Region, India
2
Markets at Delhi & NCR
Delhi - Broad Demographics

1 2 3 4 5 6 Total Population SC Population 0-6 age population Rural Population Population Growth Rate Density (Per Sq. K.M.) 1.38 Crores 17 % 14.5% 39.8% 3.81% 9340
Reduction from initial 53% ( 1991) Double the National Average
7
8 9 10 11 12 13 14 15 16
Total Area sq. K.M.

Sex Ratio (per 1000 Males) Total Literacy Rate (%) Persons Female Literacy Rate (%) Average Family Size Birth Rate (per 1000) ,2001 Death Rate (per 1000),2001 Infant Mortality Rate (per 1000),2001 PER CAPITA INCOME AT CURRENT PRICES FOR THE YEAR 2000-01(QUICK ESTIMATES) Ratio Population (Natural Vs Migration )
1483
821 81.67% 74.71% 5.06 21.24 5.81 23.93 Rs..38864
Decreased slightly from earlier 827 . National Average 933
Delhi Region Urban 4.99 , Rural 6
growing rapidly population wise and overall growth.
1 : 1.24
5
Source : CENSUS 2001
Delhi - Economic Environment
Urbanization ( 2006) stands at 94% with a healthy growth of 10.5%
Emerging Business competition
NCR Growing rapidly in health care investment , due to private investment friendly attitude of the respective governments
Gurgaon all set to have a 600 beds Medicity by Dec 2009 Ghaziabad & Noida will see around additional 300 beds projects by end of year 2009 by other brands South and North Delhi similarly will see an investment of additional beds by existing hospitals and new entres 350
Health Unmet need

Delhi City has 2.06 beds for every 1000 population; as against the recommended = 5 / 1000 Population
(WHO, Health For all 2000)
Roughly 1200 additional beds by other healthcare organizations slated at year end 2009-10.
3
Key Business Strategies
Business Perspectives at Max Healthcare & Structural Changes in Health care Industry
Market Trend Changing disease mix Implications
Max Health care focuses on Product portfolio- Cardiac; Neuro, Mental Health; Preventive Health; Cancer and Infectious Diseases. Max Healthcare looks at Cost effective , health care models both with clinical effectiveness and business efficacy Currently Max Healthcare has a strong supportive relationship with TPAs and public health Schemes ( 20-21% TPAs ; approx 12 % Public CGHS, ECHS) Deployment of latest technology and skills; Dissemination through information search channels. A Professionally driven team which undertakes- Research based positioning to identify and occupy (Opportunity) customers mind; Focused sales effort. The size of senior citizen population would be 75.3 million by 2015 , a sizable percentage (5.3%) requiring medical treatment . Max has special focus on Elderly population and Geriatrics . Growing relevance of credit & relationship oriented businesses. A sizeable 35-40% business is by Collective Institutional sales
Increased share of Healthcare expenses Movement towards Health Insurance
Discerning and demanding customers Max Healthcare delivers Increasing competition specially designed, viable Business programme for all segments of community, Demographic shift with special focus on vulnerable sections Institutional Sales
4
What Worked Well ..
10
Operational Strategies
Case Mix Management

Pan Max has maintained a healthy Surgical Medical Case mix of 65 % : 35% ( Ref: On Inpatient Topline) , irrespective of addition of beds every consecutive year .
Further optimizing of the Inpatient Surgical-Medical case-mix for better Healthcare facility utilization , is a Pan Max Drive.
Average Length Of Stay

Endeavoring to bring about reduction in ALOS, across units , through better clinical care management and monitoring .
3.55
Days ( Length of Stay )
Average Length of Stay
3.50 3.45 3.40 3.35 3.30 3.25 3.20
3.50
ALOS at a steady Decline by -3% every year .
3.40
3.31
FY 2006-07
FY 2007-08 Year
FY 2008-09
11
5
Business Development Initiatives
12
Success is about Trust

Depends on building
TRUST
Not only through Doctors Nurses Facilities and Equipment International Best Practices
But by
Providing Remarkable Service Experiences
13
Max Brand - MHC Trust Building Framework

Rational Experience Equipment / Technology Nursing Care Physicians Facilities
Customer Experience
People Processes Technology - Infrastructure
Build Trust

Word of mouth Positive referencing
Look Feel Smell - Touch
Physi-cians
Front Office
Nursing Care
Pharmacy, F&B, Housekeeping, etc
Customer Touch-points
Emotive Experience
14
How are we selling it?

Camps CMEs Health Talks Stalls Familiarization Visits
Network Hospital Tie-ups

OPDs Relationship Programs Time bound -Promotional Offers
Brand
New Products New Consultant Introductions New Territory Mapping/ Visits Fee for Service Tie-ups Max Visiting Consultant Tie-ups Courtesy Attachments
Revenue
15
By a comprehensive Stakeholder & channel Tapping
16 % Figures for FY 08-09
International Markets
Orthopedics, Aesthetic & Reconstructive Surgery, Spine Surgery, & Bariatric Surgery
Cardiology, Critical Care, Neurosciences, Orthopedics
US/Canada
Orthopedics, Aesthetic & Reconstructive Surgery, Spine Surgery, & Bariatric Surgery
Europe
Gulf SAARC
Africa
Neurosciences, Spine & Oncology
Aesthetic Surgery, Cardiology, Neurosciences, Orthopedics, Oncology
Rack/D2 Markets
Rack/Rack+ Markets
17 Premium Markets
6
Customer Initiatives &
Quality of Care
18
Max Healthy Neighbourhood

Customer Relationship Programme
Preferred Healthcare Provider for RWAs and Club members
Benefits
4055 4055 Emergency Signage Branding which will aid Emergency Recall Acquisition of updated Residents Database Quarterly Customer engagement activities like Health camps and talks
Location: GK 1-R Block ,Near M Block Market
Location: Vasant Enclave, on Airport Road
19
Max Health Line
First Edition: Released on 2nd Jul, 07 coinciding with the Inauguration of Max Hospital, Gurgaon Circulation: 40,000 Households in Gurgaon Theme: Emergency, Seasonal Diseases, Preventive Health & Allied Services
Second Edition :Released on 8th Sep, 07 Circulation :2,40,000 Households in Gurgaon & South Delhi Theme: Emergency, Woman & Child Care, Lifestyle Management & Allied Services
20
New PHP
A programme that suits your Health and your wallet
Platinum PHP
Growth in total PHP revenue by 36% YOY 17,000 PHPs undertaken in 2008-2009
21
Quality and Standardization Not an Initiative but a EMBEDDED PROCESS in ensuring Affordable, accessible, Cost effective,
High quality care .
Clinical Governance
Track Record of Leadership Position in Quality of Services:
Clinical Leadership: HODs /Medical Advisor Credentialing Professional Conduct Guidelines Audits Clinical Committees Adverse Event Tracking
NABH Accreditation:
MHVI & MSSH GGN : under preparation Specifically assesses clinical quality. NABL Accreditation: Max Pathology Labs NABH: 2 Blood Banks ISO Certification: 5 Max Hospitals are ISO 9001-2000 Certified ISO 18000: PPA IMS: for MHVI, PPG & PPA underway
Physician Disciplinary Policy

Risk Mitigation (Risk Assessment Group) Department Specific Clinical Scorecard Performance Evaluation
22
7
Strategy for Sustained Growth
23
Strategies for sustained growth
Max Health care endeavors to replicate its Brand success , and affordable quality care from NCR Region to, select regions within 300 Kms radius . Looking at strategic initiaves on enabling effective Public Private Partnership in Northern India Launch of Superspeciality hospitals , with Cost control Models , and community driven service mix , In Tier-2 Cities . Enhancing its Programme design , by Introducing , state- of-art , Oncosurgery, Infertility Line management , High End Orthopedic surgeries etc . Effective systems of Business management and Service line costing through Innovative Business simulation Models. Leverage of Max Business strategies and Operations efficiency models into other tier 2 Hospitals , through Management Contracts/ tie-ups .
24
Thank You
25

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Improving Revenue and Profitability

The Max Healthcare Experience

IFC , International Private Healthcare Conference, 2009

Max Health care : An Overview

Max Healthcare Network N.C.R.

MAX HEART & VASCULAR INSTITUTE, Saket

MAX BALAJI HOSPITAL, PATPARGANJ May 2005;(East Delhi),(154 Beds)

Delhi - Broad Demographics

Total Area sq. K.M.

Delhi Region Urban 4.99 , Rural 6

growing rapidly population wise and overall growth.

Delhi - Economic Environment

Urbanization ( 2006) stands at 94% with a healthy growth of 10.5%

Emerging Business competition

Health Unmet need

Increased share of Healthcare expenses Movement towards Health Insurance

Case Mix Management

Average Length Of Stay

Average Length of Stay

3.50 3.45 3.40 3.35 3.30 3.25 3.20

ALOS at a steady Decline by -3% every year .

Success is about Trust

Max Brand - MHC Trust Building Framework

People Processes Technology - Infrastructure

Word of mouth Positive referencing

Look Feel Smell - Touch

Pharmacy, F&B, Housekeeping, etc

How are we selling it?

Network Hospital Tie-ups

By a comprehensive Stakeholder & channel Tapping

16 % Figures for FY 08-09

Cardiology, Critical Care, Neurosciences, Orthopedics

Max Healthy Neighbourhood

Location: GK 1-R Block ,Near M Block Market

Location: Vasant Enclave, on Airport Road

Max Health Line

A programme that suits your Health and your wallet

Physician Disciplinary Policy

Strategies for sustained growth

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