how to prepare project report for new hospital
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INTRODUCTION TO HEALH CARE
Health care means a wide and intensive form of services, which will be related to well
being of human beings. Health Care is a social sector. Health Care services are
provided at state level with the help of central government.
Health care is a wide and intensive industry, which covers Hospitals, Health
Insurances, Medical software, Health- equipments and Pharmacy in it.
Major inputs of health care industry
The major inputs of health care industries are as listed below:
I. Hospitals
II Medical insurance
III. Medical software
IV. Health equipments
Overview of health care sector in India:
India’s healthcare sector has made impressive strides in recent years. It has
transformed to a US$ 17 billion industry and is surging ahead with an annual growth
rate of 13% a year. The healthcare industry in India expected to grow in size to Rs
270,000 core by 2012. The healthcare industry employs over four million people,
which makes it one of the largest service sectors in the economy of our country.
Healthcare is dependent on the people served; India’s huge population of a billion
people represents a big opportunity. People are spending more on healthcare. The rise
in literacy rate; the higher levels of income; and an increased awareness through the
deep penetration of media, has constituted to greater attention being paid to health.
India has a very low density of doctors. Infant mortality is amongst the highest in
India.
SERVICE SECTOR MANAGEMENT 1
Hospitals in India are running at 80-90% occupancy. Major corporations like the
Tatas, Apollo Group, Fortis, Max, Wockhardt, Piramal, Duncan, Ispat, Escorts
have made significant investments in setting up state-of–the-art private hospitals in
cities like Mumbai, New Delhi, Chennai and Hyderabad.
Good Healthcare in India is in extreme short supply and it is this gap that Corporate
are looking to plug. Most users of healthcare prefer private services to government
ones. The private Healthcare segment has grown into a formidable industry estimated
to be Rs.8,00,000 crores. Using the latest technical equipment and the services of
highly skilled medical personnel these hospitals are in a position to provide a variety
of general as well as specialists’ services.
“India is well positioned to tap the top end of the $3 trillion global healthcare
industry because of the facilities and services it offers, and by leveraging the brand
equity of Indian healthcare professionals across the globe”, said Vinod Khanna,
Union Minister of State for External Affairs.
The Government of India places top priority to healthcare in the national agenda. It
is very serious about encouraging indigenous R&D and creation of human capital.
This would improve the quality of life of our people, leading to greater socio-
economic progress of the country.
As medical costs sky rocket in the developed world, countries like India have
immense potential for what is called "Medical Tourism", highlighted Harpal Singh,
Conference Chairman, in his theme address. “India, with outstanding human resource
talent and the setting up of world class medical facilities, was now poised to take
leadership in the fast emerging arena of healthcare management which is witnessing
the first signs of globalization”.
SERVICE SECTOR MANAGEMENT 2
MARKET ANALYSIS
Market Overview
India has a fairly comprehensive healthcare system comprising of government and
private service providers. However, the system reaches barely fifty percent of the
population – mainly on account of general infrastructure bottlenecks. The country
lags behind international standards on basic healthcare infrastructure and facilities.
India has 94 beds per 100,000 population as compared to the WHO norm of 333
beds per 100,000. The density of doctors is also low. There are only 43 doctors
for a population of 10,000.
Size of Market
India's healthcare industry is estimated at Rs 1000 billion. Of this, pharmaceuticals
account for Rs 200 billion. As per some estimates, Rs 185 billion is spent on
healthcare annually. On average, Indian families spend 600 per month on healthcare
which is 11% of the household income, showing that they are willing to spend
provided the service they get is of high standard. According to The World Health
Report 2000, India's health expenditure is 5.2% of its GDP. Public and private
health expenditure is 13% and 87% respectively.
CII-McKinsey Study
A joint study "Healthcare in India: The Road Ahead" done by the Confederation of
Indian Industry and McKinsey & Company in 2002 mentions that India has 1.5 beds
per 1000 people while China, Brazil & Thailand have an average of 4.3 beds. The
study projects that changing demographic and disease profiles and rising
treatment costs will result in healthcare spending more than doubling over the
next 10 years. Private healthcare will be the largest component of this spending
in 2012, rising to Rs 1560 billion from the current level of Rs 690 billion. In
addition, public spending could double from Rs 170 billion if the Government
reaches its target spending level of 2% of the GDP, up from 0.9% today.
SERVICE SECTOR MANAGEMENT 3
PEST ANALYSIS
Political factors
Most of the healthy nations are also wealthy nations. In India even after 53 years of
independence we all have to accept that government has failed to provide basic
healthcare. Healthcare is the neglected field, only meant for slogans by our
politicians.
To improve healthcare facilities we have to provide special assistance to private
healthcare sector. The reality in private healthcare sector is that as an industry it has
long gestation period and so most of the bigger projects fail.
Government has to give certain concessions to private health sector. It can be in the
form of free land for small hospitals at district levels or concession in power tariff.
Government later on gets back revenue in the form of tax when these institutions start
making profits. Concessions can be limited to first five years or so.
Maharashtra government is playing an important role in the development of the
hospital sector.
Economic factors
The Indian healthcare is the next boom in the country after the IT euphoria.
Setting up hospitals is not an easy task.
The amount of hospitals in India is very less when compared to the other developed
countries. Even the urban areas do not have enough medical facilities. In the rural
areas one village has only one doctor, who may not be very well qualified.
The other governments of other states should take up a cue from the Maharashtra
government, in setting up similar Joint ventures all over the state with the assistance
SERVICE SECTOR MANAGEMENT 4
of World Bank. The World Bank can make available funds of around Rs 700
crore for state health systems and development projects.
The people in India do not avail of the hospital facilities very soon. This is because of
the high cost related to it. However this may all change because of the increasing
deployment of third party payment either in the form of Medical and Allied
Insurance, or in the form of reimbursements from the State. This in turn will increase
the employment opportunities to many people.
Social Factors
1. 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.
2. Look after the needs of local poor people.
3. Open counseling and relief centers.
4. Teach hygiene, sanitation among the poor masses.
5. Safe disposal of hospitals wastes like used injection needles, waste blood etc.
and taking due care of environment.
6. Spreading awareness about various diseases through campaigns and free
medical check ups.
7. In brief the social aspect of hospitals industry is to see that latest treatment and
medicines are available to people at large at concessional rates or free of cost
and that its activities are not only restricted to rich people.
Technological Factors
We are witnessing Information technologies transforming the way health care shall be
delivered. Innovations such as computer based hospital information systems, medical
records; decision support systems, health information networks, telemedicine, real
time image transfers and newer ways of distributing health information to consumers
are beginning to affect the cost, quality, and accessibility of health care.
The technologies today can support vast databases, network communications, quick
distribution and reliable image transfers.
SERVICE SECTOR MANAGEMENT 5
INTRODUCTION TO HOSPITALS
Until the early 1980s, Government-run hospitals and those operated by charitable
organizations. The last two decades have seen the mushrooming of corporate and
privately run hospitals. Most large trust and corporate hospitals have invested in
modern equipment and focus on super-specialties.
The private sector accounts for 70% of primary medical care and 40% of all
hospital care in India. They employ 80% of the country’s medical personnel.
The corporate hospital sector is most evolved in the south while charitable/trust
hospitals proliferate in the west. However, the north and east are also showing a
growing trend in private hospital expansion. Key therapeutic areas are cardiology,
nephrology, oncology, orthopaedics, geriatrics, maternity and trauma/critical care.
Hospitals are not for profit making, they are social institution to make available to
society the required Medicare services. However this may not be true for private
hospitals. Today hospitals are a place of diagnosis and treatment of human ills, for the
training research, promoting health care activities and to some extent a center helping
biosocial research. WHO states that hospitals are socio-medical organization whose
functions are: Curative, preventive, patient services and training of health workers in
biosocial research.
With time the classes and quality of hospitals have changed a lot today. Most
hospitals today are trying to provide all ultra facilities and are in the process of
making state of the art hospitals. Hospitals provide the infrastructure facility to
healthcare.
SERVICE SECTOR MANAGEMENT 6
CLASSIFICATION OF HOSPITALS
The classification of Hospitals on the basis of objective, ownership, path and size.
1. On the basis of the OBJECTIVE there are three types:
Teaching cum research for developing medicines and promoting research to
improve the quality of medical aid.
General hospital for treating general ailments.
Special hospitals for specialized services in one or few selected areas.
2. On the basis of the OWNERSHIP , there are four types:
Government hospital, which is owned, managed and controlled by
government
Semi-government hospital, which is partially shared by the government.
Voluntary organisations also run hospitals.
Charitable trusts also runs hospitals.
3. On the basis of PATH OF TREATMENT , there are:
Allopath which is the system promoted under the English system.
Ayurved, which is based on the Indian system where herbals are used for
preparing medicines.
Unani
Homeopath
Others
SERVICE SECTOR MANAGEMENT 7
4. On the basis of the SIZE, there are:
Teaching hospitals – generally have 500 beds, which can be adjusted in tune
with number of students.
District hospital – generally have 200 beds, which can be raised to 300 in
contingencies.
Taluka hospital – generally have 50 beds that can be raised to 100 depending
on the requirement.
Primary health centres – generally have 6 beds, which can be raised to 10.
SERVICE SECTOR MANAGEMENT 8
I’S OF HOSPITAL INDUSTRY
Intangibility
Intangibility indicates that the service has no physical attributes and as a result,
impossible for customer to taste, hears, feel or smell before they actually use it.
Hospital industry is where the customers (patients) get treated for physical problems
they have. The customers can’t really realize the service provided until they get well.
For this they have to provide good supplementary services.The only way they can
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.
Inconsistency
It’s also referred to as heterogeneity or variability. The 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. Also a patient may not each diagnosis in a different way. Also
since the quality of work done can be determined only after the service is performed
the providers have to be well trained in case of performing the service process.
Inseparability
Inseparability means that the service can not be separated from the creator-seller of
the service. Infact there are many services which are created, delivered and consumed
simultaneously through interaction between customer and service producers.
Here too the customer, i.e. the patient has to come upto the hospital to get the
treatment. The customer has to be present when the service is performed. Infact in
SERVICE SECTOR MANAGEMENT 9
case of hospitals the service is created and delivered simultaneously. The type of
service to be provided depends on the customer.
Inventory
Services can not be easily saved, stored or inventoried. This is all due to the
perishable nature of the services. Also there’s cost also associated with the carrying of
inventory. Here the costs are more subjective and are related to capacity utilisation for
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.
Also due to demand fluctuations the services can not be stored. E.g. there’s a lot of
rush at the dentists clinic in December and January as that’s the time when there are
lots of tourist visiting India.
SERVICE SECTOR MANAGEMENT 10
INTRODUCTION TO DIABETES
"Diabetes" is a Greek word meaning "a passer through; a siphon". "Mellitus" comes
from the Greek word "sweet". Apparently, the Greeks named it thus because the
excessive amounts of urine diabetics produce (when blood glucose is too high)
attracted flies and bees because of the glucose content. Diabetes is the common term
for several metabolic disorders in which the body no longer produces insulin or uses
the insulin it produces effectively.
In 2004, according to the World Health Organization, more than 150 million
people worldwide suffer from diabetes. Its incidence is increasing rapidly, and it
is estimated that by the year 2025 this number will double. Diabetes is in the top
5, of the most significant diseases in the developed world, and is gaining in
significance. It’s almost hit the world like an epidemic.
What is diabetes?
It is a common condition and is characterized by abnormally high blood sugar levels.
Diabetes is a number of diseases that involve problems with the hormone insulin.
Normally, the pancreas (an organ behind the stomach) releases insulin to help the body
store and use the sugar and fat from the food we eat.
Diabetes occurs:
When the pancreas does not produce any insulin, or
When the pancreas produces very little insulin, or
When the body does not respond appropriately to insulin, a condition called "insulin
resistance."
SERVICE SECTOR MANAGEMENT 11
Diabetes is a lifelong disease. As yet, there is no cure. People with diabetes need to
manage their disease to stay healthy.
India has currently the world's largest population of diabetics, with an estimated
30 million people suffering from the disease. According to the World Health
Organization (WHO), India is expected to encompass 57 million people, ailing
from diabetes by 2025 and this would become 80 million in by 2030.
Diabetes is characterized by a partial or complete lack of insulin production by the
body. the classification of diabetes mellitus include five clinical classes. Type 1,
type2, other specific types of diabetes, gestational diabetes, and pre-diabetes. Type1
diabetes is characterized by absolute insulin deficiency. Type2 diabetes which has
relative insulin deficiency combined with defects in insulin action account for 95-
97% of adult population suffering from the disease. One specific to our country is
malnutrition related diabetes mellitus and fibro calcus pancreatic diabetes. Gestational
diabetes is described as diabetes related to pregnancy. Pre-diabetes is a tern coined for
people who have only fasting high blood sugar and have no other sign and/or
symptomsofdiabetes.
The persistent rise of blood glucose levels in diabetes can lead to long term
complications (if not treated properly) involving important organs like: eyes, kidneys,
nerves, heart, blood vessels.
SERVICE SECTOR MANAGEMENT 12
Who is at risk?
People who are:
In children with unexplained weight loss, fever, nausea and vomiting.
Obese
Aged 40 years above
Having family history of diabetes (any body in the family affected by
diabetes),
who have sedentary lifestyle (not exercising) and
Unhealthy dietary habits are at risk of developing diabetes.
Women who have suffered from Gestational diabetes (diabetes you have
during your pregnancy) or have given birth to a baby who weighs more than 9
pounds may also have increased risk of developing diabetes.
Consequences of Uncontrolled Diabetes:
When diabetes isn't well controlled, a number of serious or life-threatening problems
may develop, including:
Retinopathy. This eye problem occurs in 75% to 95% of adults who have had
diabetes for more than 15 years. Diabetic retinopathy diabetes is extremely
rare before puberty no matter how long they have had the disease. Medical
conditions such as good control of sugars, management of hypertension and
regulation of blood lipids are important to prevent retinopathy. Fortunately,
the vision loss isn't significant in most people with the condition.
Kidney damage. About 35% to 45% of people with diabetes develop kidney
damage, a condition called nephropathy. The risk for kidney disease increases
over time and becomes evident 15 to 25 years after the onset of the disease.
This complication carries significant risk of serious illness -- such as kidney
failure and heart disease.
SERVICE SECTOR MANAGEMENT 13
Poor blood circulation. Damage to nerves and hardening of the arteries leads
to decreased sensation and poor blood circulation in the feet. This can lead to
increased risk of injury and decreased ability to heal open sores and wounds,
which in turn significantly raises the risk of amputation. Damage to nerves
may also lead to digestive problems such as nausea, vomiting and diarrhea.
SERVICE SECTOR MANAGEMENT 14
INTRODUCTION TO EMERALD DIABETES
HOSPITAL
Diabetic Association of India was formed in 1955. The association was formed to
educate and disseminate information concerning diabetes to the public, it soon
became the apparent that members of the medical profession also need to be
educated, trained and upgraded in these fields as per recent innovations due to
progress of research and development. To accomplish this goal, the All India
Institute Of Diabetes was established under the aegis of the diabetic association of
India in 1974. Diabetes as an ailment found new combatants as the institute educated
and trained a whole new generation of doctors, nurses and the required medical staff
in the field of diabetology.
It was then that S.L. Raheja hospital at Mahim was set up as a specialty hospital in
diabetes. Now they too have moved on, and have expanded their services for curing
ailments such as cancer and have become a multispecialist hospital.
It is finally now, EMERALD DIABETES HOSPITAL. It is situated at Worli, with a
view facing the sea, a very accessible location, the hospital promises to provide
quality diabetic care to patients.
Also helps in prevention of the disease, as it is not curable. It super specializes in
juvenile diabetes. Our aim is to specialize in one area and then move on to another.
Our services are the core specialties that provide comprehensive and affordable care
to patients suffering from various diabetes related ailments. The bed capacity of our
hospital is 50 beds, which will be increased in near future. EMERALD will be a
renowned name in the field of medicine. At EMERALD we are aware of are social
responsibilities, for which we run various health care camps and sessions that educate
the general public about common health problems, their prevention and cure.
The hospital has been designed as per the norms and the rules laid down by the All
India Association Of Hospitals. Also the technology and the equipments are as per
SERVICE SECTOR MANAGEMENT 15
international standards. It is started to set a benchmark in quality care, ethical
practice, appropriate cost and training for those in the profession.
OUR VISION
“To be a leader in health care services”
OUR MISSION
“To provide quality care in key specialities, exploiting the full potential of
technology, with medical and managerial expertise”
A PIECE OF WORD FROM THE MANAGEMENT
“We at EMERALD DIABETES HOSPITAL believe in our motto- let the sweetness
remain. For this end we attempt to provide more than just the best possible medical
treatment to our patients. Our faith lies in the miraculous power of human touch. In
keeping with this faith, our patients are treated with personal care and medical
expertise. We strive continuously to invest in technology and healing techniques. Our
aim is to combine expertise, state-of-art-equipment and care- to control the spread of
diabetes and manage the lives of diabetic individuals”.
Why EMERALD?
VALUE STATEMENT
Offer international standard of quality at reasonable cost.
Care with human touch.
Maintain a high standard of awareness towards social issues, environment and
ecology and contribute towards quality of life of the present as well as the
future generations.
Maintain mutually beneficial relationships with other agencies involved in
healthcare and related areas, both governmental and non-governmental.
SERVICE SECTOR MANAGEMENT 16
Support healthcare research.
ORGANIZATIONAL STRUCTURE
SERVICE SECTOR MANAGEMENT 17
MEDICAL DIRECTOR
CHIEF EXECUTIVE
CONULTANTDIABETOLOGIST
DIRECTOR OF NURSING
CLINICAL NURSE MANAGERS
STAFF NURSES
NURSE ASST.
ACCOUNTANT
DEVELOPMENT OFFICER
ADMINISTRATION
CATERING
ESTATES
LAUNDARY
MARKET ANALYSIS
STP For Our Hospital
We have done the STP i.e. Segmenting, Targeting and Positioning to help us carry the
research forward;
SEGMENTING
Segmenting variables such as geographic, demographic, Psychographic and
behavioral segmentation helps in knowing consumer wants needs and responses of
various services and products. It is very essential to know which segment would be
right for setting up our hospital as only after studying the diseases and the people who
are diseased or at high risk of getting those diseases form our segment.
Geographic Segment: It calls for dividing the market into different geographical
units such as nations, states, regions, countries, cities or neighborhood. One can
operate in few geographic areas, or operate in all but pay attention to local variations.
After doing research we decided on setting a specialized Hospital which would target
all sections of people, by and large the entire mass by delivering varied services to a
specific disease. The location for our hospital is Mumbai having population of around
13343 thousand people. Apart from being one of the most populous city’s it is also a
metropolitan and the financial capital of India. In Mumbai there are thousands of
people being diseased everyday with hardly any medical centers or Hospitals to treat
them. In Mumbai there are lot of people who have Diabetes, some of them don’t even
know that they have the disease.
Demographic Segment: the market is divided into groups on the basis of variable
such as age, family size, family lifecycle, gender, income, occupation, education,
religion, race, generation, nationality and social class. With these variables of
segmentation we get to know the preferences and the usage rates associated with
SERVICE SECTOR MANAGEMENT 18
different consumers. After doing a research on the following variable sour result
showed that Diabetes can be either be inherited or caused due to lifestyle disorders
such as wrong eating habits. However Diabetes can happen at any age. Our Hospital
would target Section A and Section B people. However people who are from low
income groups also form our segment because EMERALD is the only hospital
specializing in Diabetes with super specialization in Juvenile Diabetes thereby
providing best services required to treat these ailments.
Psychographic Segment: As per this segmentation we have divided the patients into
categories such as children below 20 who have Juvenile Diabetes and the others who
inherit or get Diabetes because of incorrect lifestyles such as wrong eating habits. As
told to us by diabetologist at S L Raheja hospital that most people who have greater
purchasing power and are relatively rich are the ones who suffer from Diabetes.
Behavioral Segmentation: In this the segmentation is done as per the following
variables i.e. knowledge of, attitude towards, use of, or response to a product or a
service. These behavioral variables – occasions, benefits, user status, user rate, loyalty
status, buyer readiness stage and attitude- are the best starting points for constructing
market segments. As per research and analysis any person having diabetes would
come to our hospital after knowing the facilities that we offer and the care, comfort
we provide. They would slowly develop trust in us. This would help in creating loyal
patients and create goodwill for our hospital.
SERVICE SECTOR MANAGEMENT 19
TARGETING
The entire population is our target audience because a lot of people already have the
disease but don’t know about it and the others can anytime fall prey to the disease.
EMERALD in this case, would study the different regions in the city of Mumbai
inspect those areas, initially carry on free checkups to do this and draw inferences
from those check ups that which people have diabetes and in which area mostly are
there diabetic people. These would be the case histories and be helpful in forming our
data base. Since EMERALD is a specialty hospital for Diabetes at present its target
audience is diabetic people and people who are at high risk. However it has future
plans of becoming a multi specialist hospital and then would expand its services. This
is called segment by segment invasion.
POSITIONING
EMERALD Diabetes Hospital has been set up after proper research and study
conducted on different needs of customers and varied groups in the market place.
Also specific targeting of those needs and groups are done to understand which
services would be superior and entice patients towards our hospital. Being a new
hospital it is very important for us to convey our services and offer facilities which
would help in generating a favorable word of mouth and thereby creating the much
needed trust factor amongst the masses. The end result of our positioning has led to
successful creation of a patient focused value proposition and why diabetic people
should come to EMERALD.
SERVICE SECTOR MANAGEMENT 20
DIFFERENTIATION
Juvenile diabetes
In house pharmacy
Chemist in the hospital premises used by outsiders also
Diet food with a sugar free department: health and grocery store accessed by
outsiders also.
Differentiation is like oxygen in Todays competitive environment to survive. It is
very difficult for an organisation to survive without differentiation. EMERALD
specializes in diabetes with super specialization in JUVELINE DIABETES. This will
be the first hospital to specialize in JUVELINE diabetes in Mumbai. Thus, we have
gone one step further by not only differentiating our service but introducing
something for the first time in mumbai. Also the service delivery will be our
differentiating factor will be explained further.
SERVICE SECTOR MANAGEMENT 21
OUR VALUE OFFERINGS
Specialities
Medical speciality
Diabetology (All the below in the connection to diabetes)
Ophthalmology
Dentistry
Gastroenterology
Dermatology
Nephrology
General medicine
Neurology
Paediatrics
Psychiatry
Rheumatology
Gynecology and obstetrics.
Surgical speciality
Ophthalmology
E.N.T
Pediatric surgery
Dental
General surgery
Orthopedic surgery
Urology
Nuero-surgery
Health check-ups
Basic, Executive and Comprehensive packages.
Well woman (basic and special packages).
Sweet package (Diabetes).
SERVICE SECTOR MANAGEMENT 22
Nana-Nani package (senior citizen).
Pre-employment package.
FACILITIES/SERVICES OFFERED AT
EMERALD…
Highly qualified doctors and paramedical, friendly nurses and ward boys.
I.C.U. and Operation theaters with latest technology.
Blood banks.
State of art laboratory.
Casualty ward. Tie ups with Jaslok and Breach Candy hospital.
24hours chemist shop.
Availability of stretchers and wheel chairs easily.
Lobby on every floor with proper sleeping and sitting facilities.
Good infrastructure facilities.
Coffee/tea/juice vending machines on every floor.
Dieticians and consultation.
Library.
Prayer room.
Phone booth center.
Cyber café.
Ambulance.
6 lifts and 3 exits.
Diet store.
Cafeteria with clean and hygienic food.
Good sanitation conditions.
Gift shop.
24hours ATM facility.
Dust bins at short distances.
Signage.
SERVICE SECTOR MANAGEMENT 23
Medical tourism can be broadly defined as provision of ‘cost effective’ private
medical care in collaboration with the tourism industry for patients needing surgical
and other forms of specialized treatment. This process is being facilitated by the
corporate sector involved in medical care as well as the tourism industry - both
private and public.
THE most recent trend in privatisation of health services is medical tourism, which is
gaining prominence in developing countries. Corporate run institutions are seized
with the necessity to maximise profits and expand their coverage. In this background,
corporate interests in the Medical Care sector are looking for opportunities that go
beyond the limited domestic “market” for high cost medical care. This is the genesis
of the “medical tourism” industry.
The rendering of such services on payment in foreign exchange will be treated as
‘deemed exports’ and will be made eligible for all fiscal incentives extended to export
earnings”.
.
According to a study by McKinsey and the Confederation of Indian Industry, medical
tourism in India could become a $1 billion business by 2012. The report predicts that:
“By 2012, if medical tourism were to reach 25 per cent of revenues of private up-
market players, up to Rs 10,000 crore will be added to the revenues of these players”.
SERVICE SECTOR MANAGEMENT 24
CHRONOLOGICAL SCHEDULE OF
ACTIVITIES
A standard schedule of the day is described below.
TIME OF DAY ACTIVITY
05.30 a.m. Wake Up and cleaning
06.00 a.m. – 7.00 a.m. Sponge/bath
07.30 a.m. –8..30 a.m. Breakfast
08.30 a.m. – 09.00 a.m. Organizing the patients charts
09.00 a.m. – 10.00 a.m. Doctors routine check-up
10.00 a.m. – 11.00 a.m. Medication and rest time
11.00 a.m. – 12.00 p.m. Visiting hours
12.00 p.m. – 01.00 p.m. Lunch time
01.00 p.m. – 04.00 p.m. Medication and rest hours
04.00 p.m. – 04.30 p.m. Tea/Snacks time
04.30 p.m. – 05.00 p.m. Freshing up and Doctors routine check-up
05.00 p.m. – 07.00 p.m. Visiting hours
07.00 p.m. – 07.30 p.m. Dinner
07.30 p.m. – 08.00 p.m. Medication
08.00 p.m. sleep
SERVICE SECTOR MANAGEMENT 25
S.W.O.T ANALYSIS
Strength
Quality of the doctors, nurse and staff
Medical facilities and equipment and infrastructure (room is a/c, phone
lines….)
Ambience and the general atmosphere of the hospital
Attitude of the staff, even the menials (human touch)
Specialization
Pricing is reasonable.
Weaknesses
The patients are completely at the mercy of the doctors.
Not a general hospital.
The Doctor: Patient ratio is low.
Opportunities
More training to the staff for improving their behavior and medical knowledge
To increase the facilities they provide.
To become more specialized in various fields.
Threats
The government is reducing the grants given to hospitals, thus making it
impossible to cater to the poor people.
SERVICE SECTOR MANAGEMENT 26
Competitions.
Unawareness among public.
The unions of the menials and even doctors: they can go on a strike,
disrupting the functioning of the entire health care unit.
8 P’S OF HOSPITALS
1.PRODUCT
Phillip Kotler says a product is anything that can be offered to a market to satisfy a
want or a need. Products that are marketed include physical goods, services,
experiences, events, persons, places, properties, organisations, information and ideas.
The product of a hospital can be any of the following:
Medical Services
Medical Training
Medical Education
Medical Research
AT EMERALD we believe that the ultimate aim is to make available the best
possible medical services and to prepare and train the best medics. Thus, it is very
essential for our service providers to be aware of the nature, behavior, requirements
and status of the users. This helps them in planning and development of the services
in the background of users’ changing needs and requirements. The product should be
developed keeping in mind the users’ psychology.
SERVICE SECTOR MANAGEMENT 27
THE PRODUCT MIX
Levels of service:
Level 1. Core / generic product:
This is the basic service product. In hospitals, health or well being by way of the
treatment provided by the doctor to deal with the ailment of the patients is the core
product or service.
Level 2. Expected product:
This is the basic product and minimum purchase conditions that must be met. In
hospitals, in addition to the core product, all other supplementary services like a bed,
waiting area, availability of medicines and drugs, meals, hygiene etc.
Level 3. Augmented product:
In this, along with the basic and minimum offering, there is something different
which enables the product or service to be differentiated from that of the competitors.
Hi-tech equipments, good infrastructure, personalized assistance, prayer room, cell
charging facilities, gift shop, ambulances, a terrace garden for patients to walk,
exercise all form a part of the augmented product.
Level 4. Potential product:
SERVICE SECTOR MANAGEMENT 28
The potential product contains potentially feasible features and benefits that play a
significant role in holding and attracting the customer. These features and benefits
are useful or likely to be useful to the buyers. For example, in EMERALD beds are
provided for ICU attendants free of charge along with other communication facilities
like internet.
SUPPLEMENTARY SERVICES: SERVICE
FLOWER
Information
In a hospital, providing information refers to making the patients or the general public
aware of the services and facilities offered by the hospital.
At EMERALD, this is done in a number of ways.
Information to the general public: The hospital has its own website at
www.emerald.com, containing details about the location, services, etc.
New customers or patients in general: A ‘patient guide’ is made available in each
room. This guide provides various points for the patient’s knowledge and
information, right from booking and cancellation procedures, admission rules and
procedures, visiting hours, meals, and facilities for relatives and discharge
procedures, to procedure for payment of bills.
During the patients stay in the hospital: Information regarding services, facilities or
various procedures is also provided by the employees as and when the required or on
the patient’s request. For example, at the time of discharge, the ward sister gives the
patient a summary as to the formalities like processing papers with insurance
company etc.
Consultation
SERVICE SECTOR MANAGEMENT 29
In any hospital, treatment is provided only after a preliminary check-up and/or
various tests. Preventive healthcare facilities at EMERALD include a range of
sophisticated tests and consultations.. The hospital has 24 hour diagnostic services
and state-of-the-art laboratories that help the medical team (doctors and surgeons)
diagnose the patient’s problem and suggest treatments.
Order taking
In a hospital, this is usually in the form of admitting or registering the patient. The
process of admission in any hospital should be simple, easy to understand, fast and
accurate. Means of quick registration must also be provided for in the case of
emergencies. At EMERALD the registration and necessary formalities are done
immediately.
Hospitality
This is becoming increasingly important in the healthcare sector, particularly in
hospitals as the expectations of people towards medical care are ever increasing. No
longer are they limited to only the clinical outcomes but also involve the delivery
process, margin of safety and behavior of personnel.
The EMERALD provides a host of conveniences to patients and their relatives.
Service to patients:
A choice of packages from twin sharing, single room and deluxe suites are
available to patients.
A lot of care has been taken to ensure that the patient does not feel walled in.
For example, all rooms have natural and indirect lighting with huge windows
and in some cases, terrace gardens. A number of facilities are provided to the
patient such as a television, in-house meals etc. So as to make the room
SERVICE SECTOR MANAGEMENT 30
aesthetically pleasing and improve patient mentality (they are usually
depressed), all medical sockets, instruments or attachments are hidden from
view, behind a panel beside the bed.
Service to relatives:
The EMERALD hospital in Mumbai provides a separate family waiting area for
relatives of patients in ICU. Each cubicle in the waiting area has provisions for
sleeping such as a bed, pillows, blankets etc. The reason for such an arrangement is
that, in the ICU cases, one person should be present in the hospital 24 hours so that he
is available to sign the consent form. Patient number is allotted to the relatives bed
and in the case of an emergency; the relative is immediately called by the secretary in
charge.
Relatives also enjoy facilities like internet connection, a hygenic cafeteria, prayer
rooms, library, public call booths, coffee machines, a gift shop etc.
Safety /Caretaking
Safety and hygiene is of utmost importance in any hospital. On the safety front, the
EMERALD measures up to the highest international standards, including
major/minor operation theaters, keeps a dust free environment, special peat filters for
maintaining air quality and highest degree of sterility etc.
Bills/Billing
Hospitals should ensure that billing and payment procedures are quick so as to enable
the patient to return home soon after discharge.
At EMERALD, two types of bills are generated i.e. Interim bills and Final bill. The
interim bills are generated to give on a bi-weekly basis. They give the patient an idea
about the charge payable for the specified period. It helps is avoiding any confusion
SERVICE SECTOR MANAGEMENT 31
at the time of generating the final bill. The final bill is generated at the time of
discharge. This considers all the interim bills and the advance deposit paid.
Payment
There is a separate business centre for payment of bills. An approximate bill amount
is collected as deposit before discharge, which is considered at the time of final bill.
Exceptions
These usually occur in the form of emergencies. Hospitals must be well prepared to
face any kind of unexpected emergency. For example, EMERALD has special
procedures for emergency cases.
Quality dimensions
The rapidly expanding scope of healthcare has led to increasing complexity in its
delivery. Patient satisfaction is increasingly taken as an important measure of quality.
There is increasing willingness to provide protection against illnesses by way of
healthcare insurance. This has made it pertinent that management of quality is done
on a wider basis than mere medical audits.
Implementing quality system controls the cost by:
a. Reducing unnecessary interventions.
b. Getting it right first time of repeat surgery.
c. Avoidable complications e.g. post-operative infections.
d. Imbalances of resources: Lack of theatre time or lack of access to diagnostic
facilities leading to increased length of stay.
e. Employee turnover and consequent training costs.
RATER
SERVICE SECTOR MANAGEMENT 32
Reliability - Reliability refers to the ability to perform the service promised,
dependability and accurately.
Assurance - Assurance refers to freedom from danger, risk or doubt. It
includes creditability, competence, security and courtesy. EMERALD is high
in assurance. The hospital also has a world-class team of doctors and
surgeons.
Tangibility - Tangibility refers to the appearance of physical facilities,
equipment, personnel and communication material.
Empathy - This includes access, communication and understanding of the
consumers.
Responsiveness - EMERALD is also high in responsive i.e. the willingness to
help the customer and provide prompt service. It has special procedure in
place for emergencies and quick complaint handling procedures. The
employee also goes out of their way to help both the patients as well as their
relatives.
The main products of hospitals are medical services. In addition to medical care,
EMERALD DIABETES HOSPITAL also imparts education, training and research
facilities and also educates and train paramedical officers, nurses and other technical
staff. With the changes in environmental conditions, the staff at emerald has put in
tremendous amount of efforts for acquiring sophisticated equipment and appliances,
put in process the state-of–art-technology, aquired various quality certifications and
also ventured into strategic tie-ups with renowned research and development
companies.
Medical Care
SERVICE SECTOR MANAGEMENT 33
At EMERALDthe most important functions are to give care to the sick, to render
services to the injured and restore the health of diseased persons. We believe in
controlling and managing the entire life of a diabetic patient. All the services like
line, staff and auxiliary divert a close attention.
LINE SERVICES
At EMERALD the line services can further be classified as follows:
Emergency Services
The casualty services are made available round the clock. This department is
specially meant for patients having illnesses of grave nature requiring immediate
treatment. It is also meant for injured persons. The casualty department needs to
apply more precautions especially in cases of poisoning and accidents.
This department takes added responsibility of removing emotional strain, suspense
and anxiety of attendants by rendering the best treatment made available to patients.
To attend quickly and effectively, we have the necessary set up, co-ordination with
other departments, well-defined procedures and work distribution.
Casualty Dept
Reception &
Enquiry
SERVICE SECTOR MANAGEMENT
Registration
Examination
Observation
34
Normal Health Death
Out Patient Services
In our out patient department (OPD) all patients are examined irrespective of the
degree of illness, whether minor or serious, acute or chronic. Accordingly the OPD
renders diagnostic, curative, preventive and rehabilitative services. The examination
or investigation of diseases is the most significant aspect of services rendered by the
OPD.
Our OPD is well connected with the X-ray Department, laboratories and other
facilitative services.
The doctors, para-medical officers and nurses should be well trained so that
customers never feel dissatisfied. Writing prescriptions, dressing and treatment
and further admission of patients to in-patient ward need time-honored
arrangements.
We have an extensive appointment and scheduling system that reduces the
waiting time and offer a comfortable and timely visit to the consultants.
Our panel, consisting of doctors from various specialties, offers consultations on
diabetes related problems.
The presence of support services in close proximity reduces time consumption
and offers better and quicker services.
SERVICE SECTOR MANAGEMENT
Admission Dressing
Discharge
35
In Patient Services
After the examination of patients in OPD, the patients are advised admission to
inpatient wards, if necessary. The patients are required to make decisions regarding
their admission to a particular ward, whether private or general. Each ward has a
doctor’s duty room, dressing room, nursing staff station, and other facilities required
for patient care.
Intensive Care Unit
The ICU is considered to be the heart of the hospital. It is for those patients
demanding acute, multidisciplinary and special treatment.
The staffing pattern of our ICU is planned in a scientific way so that related
patients get proper medical aid without a break or gap.
Our 10-bedded ICU is equipped with life saving and support systems handles
medical as well as surgical emergencies.
Round the clock monitoring by nursing staff ensures efficient patient care.
There is one nurse per patient; to give the much needed care and attention.
Wards
Centrally air-conditioned wards provide accommodation and services to patients.
SERVICE SECTOR MANAGEMENT 36
Least expensive are the general wards where there are10 beds.
The deluxe ward has 20 beds.
The super deluxe wards include a drawing room, a kitchen, a T.V and exclusive
facility. We have20beds.
Day Care Service Unit
Our day care services cater to those patients who require a single day stay at our
hospital. Uniquely designed unit offers a comprehensive package of services
offered globally.
Equipped with sophisticated, state-of-the-art technology, it combines care with
medical expertise to tender complete treatment.
It’s on the same floor of the OT, which helps us to provide both pre-op and post-
op care in the same department.
Artificial kidney dialysis unit
Our 24- hour Dialysis unit is a haemodialysis one.
Open round the clock, it is extremely feasible for office goers who can make use
of this facility and then return to work
The unit exploits the expertise of renowned specialist and the advantages of recent
technology to formulate a complete treatment plan.
SURGICAL SUITE AND QUALITY CONTROL
Operation Theatres
SERVICE SECTOR MANAGEMENT 37
AT EMERALD OT comprise of 6 highly sterilized operating rooms, including one
septic and one minor operation room.
The management has made available technologically advanced and sophisticated
equipment and appliances to facilitate surgeries such as diabetic foot, general
surgeries, Nuerosurgeries, orthopedics, ENT, ophthalmology and non-invasive
surgeries.
The sterilized environment ensures minimal infection while trained nurse and
aseptic techniques assure best care and treatment.
Our OT also incorporates digital recording and audio-visual connectivity with the
auditorium that assist information sharing with the experts during clinical
meetings.
Professionals designing it take important factors such as stand-by power
arrangements, proper ventilation into consideration.
Efficient doctors, paramedical staff and nurses are there in the OT.
Our OT has a pre-anesthesia room and a sterilization room. There is a scrub room
for nurses and doctors. The OT is in close integration with the blood bank.
CSSD
CSSD uses autoclave for steel, ETO sterilization to sterilize heat sensitive
reusable items and ultrasonic and water disinfector for cleaning and disinfecting
used items.
This ensures that all surgical and other reusable equipments used in the
hospital remain infection free
Department process issues and control all professional supplies used by various
medical and surgical units of the hospital to ensure our patients safety.
Quality Assurance And Infection Control Committee
It ensures good quality patient care by reducing hospitals acquired infection.
It informs the hospital authorities about communicable/ infectious diseases
Holds regular audits and imparts CME to staff members
SERVICE SECTOR MANAGEMENT 38
The department is also responsible for internal and external quality control
procedures.
DIAGNOSTIC SERVICES
Laboratory Services
Radiology
We have multi slice Spiral CT scan
Mammography (DMR plus) with stereo tactic
X RAY with image intensifier
Ultra sonography and color Doppler
Per procedural counseling by well known radiologist
Laboratory medicine
Fully automated laboratory offers services in the fields of bio chemistry, clinical
pathology, hematology, histopathology, immunology and sito genetics.
Technologies like florescence and Karyotyping ensure instant and accurate
results.
Blood Bank
Our blood bank is capable of providing whole blood as well as blood components.
All prescribed tests are performed before issuing blood to patients
Endosonography
Our endoscopy department is one of the only few hospitals in Mumbai that has digital
Video Sono Endoscope facilities. The Facility enjoys unmatched expertise and
supervision by renowned consultants.
REHABILITATIVE AND SUPPORTIVE UNITS
Physiotherapy
SERVICE SECTOR MANAGEMENT 39
It uses a combination of state – of - the –art equipment and medical expertise to
provide our patients with the best possible treatment
Our treatment plan is divided into
Exercise therapy- That includes Connective Tissue Mobilization Techniques,
exercises with different gadgets that aids movement
Electrotherapy that includes ultra sound, infrared, wax bath, stimulation,
Traction.
Diet And Nutrition
Our Dieticians and other experts provide individual diet counseling to patients
Diet consultation is available for all major and minor ailments like diabetes and
other related complications
Our cafeteria, open to all, includes an in staff dietician who keeps a check on the
nutrition value of the food served
They also provides diets for weight gain or weight loss and create awareness
about importance of diet
Nursing
Our nursing services are benchmarked and the best in the industry. The care and the
attention provided by our nurses is so comforting that patients feel that they are
recuperating at home.
24 Hour Pharmacy
We have two pharmacies One in-house and one in the premise. Open round the cock
our pharmacies offer invaluable services to the IP, OP, and Day Care and Emergency
departments. It also ensures that medicines are purchased from authorized sources
and thus guarantees the authencity of all medical supplies.
SERVICE SECTOR MANAGEMENT 40
THE STAFF / SUPPORTIVE SERVICES
Certain supportive services are important e.g. sterilisation, supply and maintenance of
instruments, materials and garments etc. At emerald these are the support services:
The catering department comprises the kitchen, bulk food stores and dining rooms
and supplies meals in the hospital. Heated trolleys have to be used to transport meals
to patients. Pharmaceutical services play an important role. An official laundry
provides bacteria free garments and clothes. The patients are provided with
disinfected and clean linen. The laboratories are properly manned and proper
diagnosis is given by them to enable right medical prescription. The establishment of
laboratories should be between the OPD and indoors so that both areas are covered
without delay or disruption. Clinical pathology, blood bank and pathological anatomy
are important areas to streamline functional management of hospital laboratories. The
radiology department should have hi-tech facilities. Currently ultrasound scanning
and CAT scanning have been found significant in improving services of the radiology
department. A matron who is assisted by a sister-in –charge, manages the Nursing
services. The norms accepted by the Indian Nursing Council should be followed. An
ideal nurse-patient ratio is 1:5, however at EMERALD we ensure 2:5.
SERVICE SECTOR MANAGEMENT 41
THE AUXILIARY SERVICES
Auxiliary services consist of registration and indoor case records, stores management,
transportation management, dietary services, engineering and maintenance service
etc. At EMERALD these services are maintained properly which govern the
successful operation of a particular department. The security arrangements, supplies,
transport facilities etc are not ignored.
The central stores department issues bulk items. There are different types of stores
like pharmacy stores, chemical stores, linen stores, glassware stores, surgical stores
etc. For carriage of supplies and patients, trolleys, wheelchairs and stretchers are
used. The dietics department plays a vital role as it provides menu to meet the needs
of patients. The services of well-qualified and trained dieticians help in providing
nutritious diets. The engineering and maintenance services are concerned with
hospital building, furniture and other equipment. Awe have a security force to provide
protection to the hospital property. Personnel related with defence or police are given
preference while appointing the security force.
SERVICE SECTOR MANAGEMENT 42
2.PRICING
In the words of Philip Kotler, one should try to “Sell value, not price”. Price is a
major determinant of a buyer’s choice, as a person must have the need, willingness
and ability or financial backing to buy the product. At EMERALD services involve
the use of expensive and complex machinery, which involve huge investments. Apart
from that, the cost of maintaining them and cost of running the hospital is in no terms
cheap. We have experienced doctors and also specialist who come from abroad
whose salaries along with those of the skilled nurses and helpers constitute a great
part of the cost.
Sophistication can’t be possible unless we change our pricing strategies. The main
thing in the pricing strategy is to link it with the paying capacity of the users so that
all the classes get medical aids without any discrimination.
There are 4 types of costing: Free, subsidized, cost based subsidy and cost plus
subsidy.
EMERALD follows Cost plus Subsidy
This strategy allows charging more than the costs involved on the services, but only
from the better-off sections of society. The transfer of these surpluses to the account
of subsidy for compensating the losses on account of providing free or subsidized
services to the weaker sections and low-income group users is also necessary.
On one hand, it is judicious that no discrimination is found in respect of making
available the medical aids, but on the other hand, we can’t adopt uniform policy while
SERVICE SECTOR MANAGEMENT 43
making available to the users and their attendants other facilities like standard of
room, indoor facilities and other non medical amenities. This is justified on the
ground that all groups are not paying equal fees for availing their services. Moreover
when no income group has been availing the services without paying any fee, their
expectations would not be more than the proper medical aids.
It is difficult to offer free or subsidized services to the masses. On the other hand,
the technological sophistication has raised the cost of services, as the inputs used in
making available the medical services are found costly.
How should prices be communicated to the target market?
Patients must be made aware of the prices of different treatments/ services as well as
how, where and when that price is payable. This must be done in an intelligible and
unambiguous way. In hospitals, generally, customer’s service representatives give
responses to customer queries about pricing, payment and credit.
Hospital bills sometimes run to several pages and contain dozens of items. Thus the
hospital must ensure that such an itemized bills are accurate and intelligible.
At EMERALD, the ‘patient guide’ in each patient’s room provides information with
regard to billing and payment procedures. Patients can also contact the billing
department for any clarification.
For the patient’s convenience, the hospital generates an ‘interim bill’s a bi-weekly
basis. This gives the patient an idea about a charge payable for the specified period
and avoids confusion at the time of generating final bills.
SERVICE SECTOR MANAGEMENT 44
3. PLACE
Place refers to the contact point between the service provider and the customer. Two
main issues considered regarding the decision of the place are accessibility and
availability of the service to the customer. EMERALD is easily accessible, that is, it
is not located in a heavy traffic zone as this would prove detrimental to the very
existence of the hospital. Areas around hospital are silent zones i.e. EMERALD is
located near Worli sea face and is near a prominent road so that it can be reached
easily. Having in house ambulance services to pick up patients on the other hand
increases accessibility to EMERALD. We also have contracts with ambulance
services to bring our patients from whichever location to the hospital.
4. PROMOTION
EMERALD relies on favorable word of mouth and not on aggressive promotion.
We conduct camps in rural areas to give medical check ups at reasonable prices; we
sponsor visits to old age homes and donate them a good amount of food and
medicines. We continuously introduce different health services and we generally
advertise in health and fitness magazines and also conduct free check ups.
EMERALD holds seminars and conferences relating to Diabetes and latest
SERVICE SECTOR MANAGEMENT 45
technology, where we involve the doctors from all around the country, for detailed
discussion.
PROMOTIONAL MIX
Personal communication
1) Personal selling:
This involves an immediate and interactive relationship between two or more persons.
We at EMERALD usually resort to personal selling for business-to-business
marketing. Both in the case of corporate tie-ups and approaching doctors for patient
referrals, it is our marketing executive who personally approaches the corporate or the
doctor so as to pitch and finalize the deal.
2) Customer service and training:
In EMERALD, almost all the services are delivered in the customer’s presence.
Front-line personnel are directly involved in the process of offering the services, due
to which they are efficiently informed, trained and supported. For instance, if nurses
neglect patients, receptionists misbehave and doctors do not show a human approach,
the hospital will fail in delivering good service to the society in spite of the
availability of most sophisticated equipments and technologies, efficient doctors and
nurses and most comfortable buildings and infrastructure facilities.
SERVICE SECTOR MANAGEMENT 46
Thus, we invest a lot in internal marketing by way of training so as to ensure that the
employees are at their best of behavior with the patients and well informed about the
various activities of the hospital, including free check-up camps and talks. An
important way of internal marketing is analyzing feedback from regular customer
satisfaction surveys and improves service delivery so that the way of service delivery
itself is the marketing of the service.
As mentioned before under service recovery, one way in which EMERALD ensures
good customer service is by holding training programs for nurses every 15days,
enlighting them about how to handle various patients etc.
3) Word of mouth:
In Medicare services, word of mouth plays a very important role, as people are more
likely to trust a hospital if they have heard about its success in treatments or quality
care from a patient. Thus, by ensuring good customer service, we also get a lot of
promotion by way of word of mouth.
Advertising
They are not used frequently in hospital marketing. Hospitals can focus on the quality
of their services, their contribution to the social transformation process, but they
cannot advertise for generating profits. Mostly, advertising through mass
communication media like TV, print media etc. is only used in social marketing
where the objective is to pass on a social message like family planning, child
immunization, health and family welfare etc.
Sales promotion
In EMERALD, sales promotion takes place usually by way of
Sign up rebates or discounts
SERVICE SECTOR MANAGEMENT 47
Gift premiums, for ex. Doctors are offered various gifts and benefits in return
for patient referrals.
Instructional materials
Although service personnel plays an important role in educating the customers about
the service they may not always be available to help in the locations where or when
the customers need them. EMERALD, thus uses traditional approaches like printed
materials, ranging from brochers and instruction manuals.
As mentioned earlier, EMERALD has a ‘patient guide’ in every patients room which
gives patient valuable information regarding booking, cancellations, various facilities
available, what to expect during the stay, discharge procedure, billing and payment
procedures etc.
We also have a patient education service, wherein brochers regarding Diabetes, what
the various Diabetes symptoms are, what the various treatments are involved, how
diabetes can be avoided by way of healthy eating and exercise etc.Along with this we
even have a website with necessary information for the patients.
SERVICE SECTOR MANAGEMENT 48
5. PEOPLE
Service personnel play an important role in an organization. For satisfying the users, it is
only not essential that they are made available the best possible medical aids. In addition
to the medical aids, the behavioral aspect is also found impact generating, especially
when we consider marketing a customer satisfaction-engineering tool. It is natural that
the expectations of all groups can’t be uniform. In a hospital the behavior and attitude of
the personnel providing services is very important as far as the customers overall
perception of the service is concerned. It is necessary that the staff in a hospital is trained
to provide quality patient care using state of the art technology. The objective of
EMERALD is providing quality service to patients and this can be achieved by:
1. Motivating employees to be efficient, dedicated and loyal to the organization.
2. Providing regular on-the-job training of employees to ensure continuous
improvement in health care
3. Utilizing services of professionally competent medical consultants.
4. Use of the latest technology.
Motivation is not necessarily by giving high salaries. There are many other ways to
motivate employees – concessions should be given to the employee’s near ones and there
should be active participation of the employees in the activities of the hospital.
SERVICE SECTOR MANAGEMENT 49
6. PROCESS:
Process is a set of activities that take an input, convert it and add value to the input and
finally, create an output. Blueprints design processes, which sets a standard for action to
take place and to implement the service. A process is divided into the following phases in
a hospital. At EMERALD the patient has to go through the following phases:
1. The joining phase – which includes
The arrival of the patient
Registration – where a patient has to make an initial deposit at the inpatient
billing counter after which a file is opened in the patient’s name to know the
patient’s medical history.
2. Intensive consumption phase – which includes
Diagnosis – where the consultant diagnoses the illness by making the patient
undergo various tests
Treatment – where the illness is treated with proper medication or surgery
Information about further actions – the consultant will instruct the patient
regarding the diet to be followed, the medication to be taken etc.
3. Detachment phase – which includes
Discharge of the patient
Payment – after the patient is discharged, the bill will be paid at the billing
counter.
4. Feedback – at this stage, the patient is requested to fill an evaluation form, which
helps the hospital authorities to know the level of satisfaction derived by the
patient. Patient’s suggestions are always considered for improving the hospital
services.
SERVICE SECTOR MANAGEMENT 50
7. PHYSICAL EVIDENCE:
Physical evidence makes a huge impact on the customer. Physical evidence provides
customers means of evaluating the service. Corporate image plays an important role in
terms of physical evidence. The physical evidence has a good and favorable influence on
the mindsets of the patients and their relatives who visit the hospital. This helps patients
to come again to our hospitals and also do favourable publicity by the most effective
weapon the “word of mouth”.
We have the following aspects which help in enhancing physical evidence there by
creating good first impressions.
The hospital is structured as per the hospital planning decided by the
Bombay hospital association.
Emerald Hospitals has a good ambience. This ambience plays an
important role because when a patient walks into a hospital, he
immediately forms an opinion about the hospital.
The staff follows a dress code to show professionalism and maintain discipline.
The staff is trained to understand; be warm and comforting because the patients
that goes to the hospital is usually disturbed or unhappy.
The hospital is centrally air – conditioned.
The signage is put at regular intervals so that people can have easy
accessibility.
The reception and help desk are on the ground floor, for easy access to
information and other departments.
Our hospital is well organized and segregated into different departments.
The departments are well planned and equipped with the state-of-the-art
technology.
All the doctors are provided with a well – equipped cabin.
SERVICE SECTOR MANAGEMENT 51
Professional hospital interior designers plan the operation theater; also the blood
bank and the intensive care units are on the same floor in proper spacing and
alignment of the OT.
There is wooden flooring in the hospital and in the wards, it is marble
Good lighting and ventilation is taken care of.
There are different bathrooms for women and men, two on every floor.
There are six lifts in total: two for patients, one for doctors only, one for staff, two
for visitors which is used only from 10am -11am in the morning and 4pm to 6pm
in the evening. The rest of the times one remains for visitors the other are for the
catering department, which has to serve meals.
The kitchen is extremely hygienic and the food prepared as per required. Also the
kitchen has a glass door so that the process of cooking is visible. The cooks are
well trained and use sterilized crockery. Also they have were gloves, masks, lab
coats and no footwear allowed.
Water coolers are placed at regular intervals having hot and cold drinking water
facility.
There phone booths in the visiting lounge.
There are two cyber cafes: one for the doctors and staff and one for visitors in the
visiting lounge.
Special care is taken to maintain hygiene; cleanliness and the whole hospital is
well – lit. This is generally taken care of by the housekeeping department.
Keeping the hospital clean and dirt free is every ones responsibility and because
of which the dustbins are kept at regular intervals.
The hospital is kept odor free by spraying air fresheners and neutralizers.
Our hospital has kept in mind both the aspects of physical evidence that is
essential and peripheral evidence. Physical evidence plays an important role in a
hospital where the patients are already depressed or traumatized and a good
atmosphere could make all the difference.
Every aspect of our hospitals has to meet the hygiene and cleanliness standards set by the
board. We ensure care, convenience and comfort at all times.
SERVICE SECTOR MANAGEMENT 52
8. PRODUCTIVITY AND QUALITY:
Productivity in services is how we transform the inputs into outputs, which are valued by
the customer. Quality is the degree to which the service satisfies a customer by meeting
their wants and expectations.
INNOVATION
Hospitals will soon go hi-tech, not so much in terms of sophisticated medical equipment,
but in that a patient’s kith and kin can virtually visit him/her from any part of the world
and the patient too can communicate with them and relieve their undue anxiety.
Bangalore has emerged as a pioneer in the design of an interactive website used in
making virtual visits to hospitals, thus introducing a human element hitherto, unthought
of. This breakthrough in the usage of information technology for patients was achieved
by the Bangalore based ‘Think Ahead Incorporated’, in designing he website for a
hospital.
The primary advantage of this technology is the mitigation of undue anxiety of relatives
particularly, sons and daughters, children of patients who are settled abroad – who cannot
be at the bedside of the patient undergoing treatment for a heart ailment or a major
surgery. The ‘Virtual Family Visit’ allows relatives to see real time images of patients
through audio – visual files which can be downloaded on their computer by entering the
hospital website through the Internet. These files of the patient are shot by the hospital
using a webcam to show the convalescing patient and his message for his family
members. The files are then uploaded in the hospital website. The family members can
also communicate with the patient by way of sending online get well card to patients.
Besides, they can also get reports of the patient’ condition from the doctor in-charge, if
the relatives so desire.
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Wockhardt Hospital, where the virtual family visit is in use, the relatives are physically
able to see their near and dear ones recuperating from the treatment which avoid
emotional trauma. This facility in hospitals is particularly useful when a relative is unable
to rush to the hospital to be physically present due to various reasons. Besides, the patient
himself is to be on the road to faster recovery when he communicates with his loved
ones.
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THE SERVICE MARKETING TRIANGLE
– BY GRONROSS
The triangle comprises of the company i.e. the hospital, employees i.e. the doctors, nurses
and the customer or in this case, the patient
The company here is the hospital which dreams up the idea of a service offering
by way of treatment, which will satisfy the customers i.e. patient’s expectations of
getting cured.
The patient who seeks to get cured is the customer for the hospital as he is the one
who avails of the service and pays for it.
SERVICE SECTOR MANAGEMENT
Internal MarketingEnabling the Promises
External MarketingMaking the Promises
Company –EMERALD DIABETES HOSPITAL CENTER
Employees – doctors, nurses, etc.
Customers - Patients
Interactive MarketingKeeping the Promises
55
The employees comprise of all the people who are involved in providing the
service, namely doctors, nurses, technicians, attendants, administrative personnel
etc.
From the triangle we see that three kinds of marketing activities take place in a hospital.
EXTERNAL MARKETING
The hospital undertakes external marketing as to promote the service i.e. treatments and
facilities to the patients. This has been explained in detail under the promotion mix and
the hospital marketing.
INTERACTIVE MARKETING
Secondly interactive marketing takes place between the employees and the patients.
Interactive marketing describes the employees’ skill in serving the client/patient. We
know the customer of the hospital is the patient who is in some degree of discomfort or
suffering when he is admitted/comes in.
From the time he enters to the time of discharge, the patient has to continuously interact
with the hospital’s employees by way of talking to the nurses, attendants.
Thus in his vulnerable state of suffering or sickness the patient expects quality care along
with empathy and consideration of his every need by the hospital staff.
Thus the selection, motivation, training of the hospital staff makes huge difference in the
well-being and recovery of the patient.
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INTERNAL MARKETING
Good and effective interactive marketing is made possible only through efficient internal
marketing. Hospitals undertake internal marketing to train employees and motivate them
to serve customers well. Such training will help improve employee competence and
improve employee responsiveness, problem solving ability as well as their attitude,
goodwill towards patients, all of which in turn will result on patient well being and
recovery or customer satisfaction.
Thus internal marketing ensures that the employees are at their best behavior with the
patients and well informed about the various activities of the hospital. An important way
of internal marketing is analyzing feedback from regular customers satisfaction surveys
and improving service delivery so that the way of service delivery itself becomes the
marketing of the service
INTERNAL MARKETING AT EMERALD
Continuous medical education programs are held periodically so as to make
doctors aware of how new/rare diseases, latest technology etc.
Training programmes are held every fifteen days for nurses who come into most
direst and frequent contact with patients, so as to educate them on how to handle
various temperaments/patients.
They also collect feedback from customers which will help them continuously in
improving the service delivery.
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CRITICAL INCIDENTS
Here, critical incidents are the period prior and during the procedure, discharge and
billing. During and prior the procedure, the relatives of the patients are likely to be most
vulnerable. That is, they are worried about the well-being of the patient and as a result are
likely to be less tolerant of mishaps.
EMERALD handles this by ensuring that the relatives receive a host of conveniences at
the time. For instance,
A counselor gives frequent updates to relatives during the procedure. In the case
of ICU patients, the counselor also arranges meetings between the ICU doctor and
the relatives once a day.
Relatives are provided with comfortable cubicles with communication facilities in
the waiting lounge.
Prayer rooms are also provided for the relatives. This is where they can pray
while the patient is in surgery or ICU.
Sometimes there may be more than one consent form for a procedure. This may
prove a complication that the patient/relatives don’t need at the time. Thus, the
hospital ensures that the patient’s consultant or his assistant explain the details of
the procedure to the patient/relatives.
All measures are also taken by the hospital to ensure that the patient receives the best
care, a number of formalities have to be completed by the patient at the time of discharge.
As this may prove confusing to the patients, the ward sister gives the patient a discharge
summary at the time of discharge.
After the procedure and recovery the patients are usually eager to get home. Therefore,
they will not appreciate lengthy or complicated billing procedures. The hospital has a
separate business centre for the efficient and quick processing and payment of bills. So as
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to avoid any inconvenience to the patient, the final refund is made by cheque, and sent to
the patient by courier
COMPLAINT MANAGEMENT/SERVICE
RECOVERY
Service recovery is an aspect of the total customer service strategy that is often
overlooked by hospitals and health care workers. Service recovery provides the tools
employees need to help customers “recover” from negative perceptions, thus becoming
satisfied patients.
EMERALD has a distinct Customer Care department. It is the duty of this
department to sort out problems associated with customer satisfaction, complaints
etc.
The department takes a round of the hospital everyday between 9-12 every
morning, collecting feedback and checking on the service that the patients and
visitors receive.
Feedback forms are provided by the ward sister to the patient at the time of
discharge. The patient is asked to fill it and put it in the suggestion boxes before
leaving. The patient is assured of his/her identity being kept secret from the
hospital staff.
Suggestion boxes are placed at the nurse’s station in each wing.
The department acts any problems discovered on. For example, if a patient
complains that a particular doctor doesn’t arrive on time etc., the doctor is made
aware of the situation/ discomfort caused due to his late arrival and asked to
correct his behavior.
In the event that the patient leaves the hospital with a bad impression, a letter is
seen to the patient, apologizing for the inconvenience and an assurance that it will
be looked into and prevented from happening again.
The use of web technology for virtual hospital visit is said to be the first of its kind in the
world. The claim may be true considering that family bonds in the country are very
strong and even extends to close relatives. It may also be one of the reasons why such a
SERVICE SECTOR MANAGEMENT 59
facility had not been thought of in other parts of the world. Besides, scaled – down joint
families are still prevalent where this technology would come in handy. The success of
this facility is revealed by the fact that there were as many as 8,000 hits within two
months after its introduction.
MEDIA PLAN
All media promotions will begin six months before the commencement of the hospital in
order to create some awareness before be become completely functional. The Ad spend
will be maximum in the first year, as this will be when we are creating awareness about
diabetes and also building a name in society among our target audience.
Our plan will consist of the following activities along the various lines,
Personal Selling:
It involves sending personnel out to schools, pharmacist, doctors and other hospitals etc.
to talk to prospective customers (patients), especially parents of these children. So that
nobody is ignorant about the seriousness of the disease. We will also have walk in
seminars to achieve the same end.
Public Relation:
Direct contact program:
Nurse’s day celebration on 12th may every year.
Children’s day celebration on 14th November every year.
Celebration of Independence and Republic day in order to shape the young minds
as they will be molding the future.
Education/Awareness:
Magazines newsletter where children will share their experience.
Sponsorship incase of school sports day.
Pharmacist and doctors.
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Corporate Social Responsibility:
Free check-ups done at school and other places.
Diabetic week
Beautification of the surrounding
Out reach camps incase of epidemics, communicable diseases
Provide medicines to orphanages and old age homes.
Internal assessment:
Seminars held on a monthly basis for doctors in the auditorium.
Get together and informal meetings for staff.
Continuous training provided to staff on different issues such as behavior,
personality, etc.
CMEs (continuous Medical educational Programmes)
Committees for grievances and accepting constructive criticism.
.
Advertising:
Television commercial media plan
Channels Program Days Total Budget
Mon, Tue, Wed, Thur Fri, Sat,Sun ####(Rs.) week
Star plus Kaun Banega Crorepati 2 1 1 1 1 3 39,00,000Kyunki saas bhi kabhi bahu thi 1 1 2 17,00,000Kasautii zindagii kay 1 1 2 12,00,000
Sony C.I.D. 1 1 12,00,000
Aaj Tak News around the clock 1 1 2 39,000
CNBC Health and Fitness 1 1 12,000
History Biography 1 1 9,000
Star world Opra Winfrey Show 1 1 25,000
Zee Café Full House 1 1 5,000
Total 2 2 2 2 2 2 2 14 80,90,000
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The total budget for the TVC for the week is Rs. 80,90,000 and hence for the month Rs. 32,360,000 and the difference in the rate is due to the various categories.
News paper media plan
Name Of The Paper No. Of times in a week Weekly Budget (Rs.)
Times of India + Wellness 3 6,00,000
Hindu 2 1,00,000
Economic Times 3 3,00,000
Dainik Bhaskar(Regional paper) 2 2,50,000
Gujrat Samachar(Regional paper) 1 50,000
TOTAL 11 13,00,000
Magazine:
Name of the magazine Weekly Budget
Health and Nutrition 67,500
Health Screen 55,000
Reader’s Digest 2,50,000
India Today 4,00,000
TOTAL 7,72,500
The print budget for the month is Rs.82,90,000
Outdoor:
Place Weekly Budget
Worli 3,50,000
Mahim (Bombay Scottish) 1,00,000
Juhu ( Maneckji cooper school) 1,00,000
Bandra ( A.V.M. school) 3,00,000
TOTAL 8,50,000
SERVICE SECTOR MANAGEMENT 62
The monthly budget for outdoor advertisements is 34, 00,000
Direct Marketing:
As for direct marketing, we will be sending out brochures/pamphlets on a selective basis
to doctors, hospitals and schools. They can even visit our website for the same. We also
have customer service departments, which will be entertaining all the calls and queries of
the customers.
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THE ROAD AHEAD…
It is very important to have a clear cut vision of what the organization wants to achieve in
the following years as competition gets intense and delighting customers gets difficult.
Hence we at EDH have set a benchmark for ourselves regarding the future perspective
and we will achieve this within five years from now.
The list on our agenda includes:
We plan to open a medical institution (diabetes education) in our campus which
would help the young minds get first hand information with practical exposure.
We would have our own Research and Development facilities.
Continuous improvement in Human Resource.
We plan to expand ourselves into a multi-specialized hospital.
Open branches in metropolitans.
Emerging as one of the main market players in the field of health care.
Finding new ways to delight our patients and help them to stay fit for a better
tomorrow.
Air ambulance facility will be provided in near future.
‘The diet store’ which is one of a kind now, will have franchising given to
different places and cities.
SERVICE SECTOR MANAGEMENT 64
AIR AMBULANCE CONCEPT
Transfer from military evacuation to today’s sophisticated EMS (Emergency Medical
Services) programs for all concerned did not occur overnight. Australia, a land of vast
distances and scattered population, probably deserves the credit for being the leader in
integrating the airplane into the health care delivery system. “Get the patient to the best
medical care available as rapidly and as safely as possible, a rewarding goal with proven
medicalbenefits.”
In India this service was only available in the military, but none in civil due to lack of
finances and non-availability of suitable aircrafts. With the onset of liberalisation in our
country during the early years of the last decade, it became possible to commence a
dedicated Air Ambulance Service, leading to reduced morbidity and mortality during
evacuation.
An air ambulance is specifically designed to accommodate the aero medical needs of
person’s who are ill, wounded, injured or otherwise mentally or physically incapacitated
or helpless, who may require emergency medical care in-flight, and who, in a physician’s
opinion, cannot be safely transported on a standard commercial flight.
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BIBILOGRAPHY
1) S. L. Raheja Hospital Name of fellow
A) Books
Philip kotler……..Marketing Management
Christopher Lovelock…….Service sector Management
Understanding diabetes
(Simple guide for patients)….Anil Kapur, Kamla Kapur
B) Magazines / Brochures
Health screen….. Volume 2, No.7, July 2005(diabetes clinical management ……cover story pg 10 – 17)
Granosinithline ( nd, sheetal booklet)
S. L. Raheja pampletes
Healthcare
Websites
C) websites
D)Nespaper
Bombay times…….30th August , 2005
Mumbai Mirror ……29th August, 2005
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