HEALTH CARE INDUSTRY

SUBMITTED BY: SEC-B GROUP-8 PGDM 10-12 BATCH VVISM

10/09/2010

1. INDUSTRY OVERVIEW 2. MARKET SIZE 3. HOW MANY PLAYERS 4. MARKET SHARE 5. SERVICE MIX 6. LATEST DEVELOPMENT

HEALTH CARE SERVICE INDUSTRY

A customer is the most important visitor on our premises. He is not an interruption in our work. He is the purpose of it. He is not the outsider on our business. He is a part of it. We are not doing him a favor by serving him. He is doing us a favor by giving us an opportunity to do so.
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Mahatma Gandhi

In regard to hospitals, we may change the word customer with patient. Since the doctors very existence is related to the patients, hospital become an integral part of medical care. Health as one of the Fundamental Human Right has been accepted in the INDIAN constitution. All though Article 21 of the constitution requires the state to ensure the health and nutritional well being of all people, the Federal Government has a substantial technical and financial role in the sector. Due to growing importance of the healthcare industry, it has been conferred with the infrastructure status under section 10(23G) of the Income Tax Act.

Health Care Industry In India.

Health care industry in India and the GDP or gross domestic product:

The rate of growth of the health care industry in India is moving ahead neck to neck with the pharmaceutical industry and the software industry of the country. Much has been said and done in the health care sector for bringing about improvement. Till date, approximately 12% of the scope offered by the health care industry in India has been tapped. The health care industry in India is reckoned to be the engine of the economy in the years to come. Health care industry in India is worth $17 billion and is anticipated to grow by 13% every year. The health care sector encompasses health care instruments, health care in the retail market, hospitals enrolled to the hospital networks etc. Expenses incurred by the Indian Government on health care is the highest amongst developing countries. India's expenses on health care sector comprises 5.25% of the GDP. Chances are that the health care market could experience a hike and attain a figure ranging between $53 to $73 billion five years from now. This in turn will reflect an increase in the gross domestic product to 6.2% GDP. The health care industry in India earns revenues accounting for 5.2% of gross domestic product.

MARKETING SEGMENTATION:

The INDIAN health care sector constitutes:

1. Medical care providers: physicians, specialist clinics, private corporate hospital, non govt. charity trust Hospitals and govt. 2. Diagnostic service centers and pathology laboratories, 3. Medical equipment manufacturers, ambulances. 4. Contract research organization , pharmaceutical manufacturers, 5. Third party support service providers (catering, laundry)

Before independence the health care sector was in dismal condition with high morbidity and mortality rates and prevalence of infectious diseases. Since independence emphasis has been put on primary Health Care and India has worked continuously to improve its health care system in last several decades. But the government funded facilities are not enough to meet the increasing demand that is why government invited private sectors to this segment. Corporate Hospital can be segmented into polyclinics, which provide services in relation to a wide range of health problems; multi specialty hospital s which provides special services apart from regular services and super specialty hospital which specialize in a particular category of health issues. Example: APOLLO is an example of multi specialty hospital where

L.V Prasad eye institute is an example of super specialty category hospital which only well known for eye hospital

HOSPITAL SYSTEM AND FUNTIONS:

Hospitals provide complete medical care, ranging from diagnostic services to surgery, to continuous nursing care. Some hospitals specialize in treatment of the mentally ill, cancer patients, or children. Hospital-based care maybe an impatient or outpatient basis. The mix of workers needed varies, depending on the size, geographic location, goals, philosophy, funding, organization and management style of the institution. When a patient enters a hospital, many groups are involved inside and outside the hospital. Inside, the patient is concerned with admission, doctors, nurses, dietetics, the business office and housekeepers. Externally the patient is involved with relatives, friends and third party- the payer, and is influenced by govt. regulations, accreditation and community.

1. PATIENT CARE FUNCTION: It is important to remember that besides treatment the

attitude and behavioral pattern of health professionals are known to have an importance influences on patient care as they are directly related to quality of care. i . Environmental system: Schulz and Johnson quote a number of studies to say that the physical environment of the hospital also effects patients response to treatment.

ii. Social system: The effect of attitude of staff towards patients due to change in their structure is obvious. iii. Cultural Relationships: The lower income group people have a problem in communicating with higher socio-economic status physicians which is obvious. The barrier exists not only because of different languages spoken by them, but also because of class difference. Some of the doctors make a conscious effort to overcome this.

2. PROVIDING A WORKSHOP FOR PHYSICIANS:

It has to be understood that the physician is not so much a part of hospital, as the hospital is part of physicians practice.

3. WORKING AS COMMUNITY HEALTH CENTER:

Hospitals have increasingly taken up a proactive role to improve the health of the population they serve, rather than sticking to the reactive role of crisis care.

4. Serving the institution itself by achieving perpetuation, growth and prestige

and community

for institution, its staff

5. NURSING AND RESIDENTIAL CARE FACILITIES:

Nursing care facilities provide inpatient nursing, rehabilitation, and health related personal care to those who need continuous nursing care, but do not require hospital services. Nursing aides provide the vast majority of direct care. Other facilities, such as convalescent homes, help patients who need less assistance. Residential care facilities provide around- the- clock social and personal care to children, the elderly, and others who have limited ability to care for themselves.

6. AMBULATORY HEALTH CARE SERVICES:

About 42% of all health care services fall into this category. This category consists of different sectors like- office of physicians, home health care services, offices of dentists, offices of other health practitioners, outpatient care centers. All these parts are playing an equal important role in health care sector.

7. MEDICAL AND DIAGNOSTIC LABORATORIES:

Medical and diagnostic laboratories provide analytic or diagnostic services to the medical profession or directly to patients following a physicians prescription

SERVICE MIX OF HEALTH SECTOR:

Having the right marketing mix to market the services of the health care industry is very important. The fact that healthcare service where the customer will not be satisfied with anything but the best makes it

essential for service providers to take extra care in planning their marketing mix. Using the right balance of marketing elements, marketers can ensure that their marketing efforts fetch them expected result.

1. PRODUCT:
The product elements of healthcare consist of the actual medical treatment provided in the hospitals, education and training provided by medical colleges and nursing schools and R&D activities carried on by research centers. These are the physical good features of health care sectors. The product lines of hospital sectors contains three broad areas, viz. diagnosis, treatment which maybe pill oriented or surgery oriented, and post-operational care. The product also includes supplementary services like maintenance of the case history of patients, registration, billing and support operation like laundry, diet, pharmacy, stores, security etc. These all service comes under packaging of any hospital.

2. PRICE:
Pricing healthcare services is done keeping in view the cost of running the hospital, the overheads, salaries and wages of the doctors , nurses and admin stuffs, cost of equipment and infrastructure, bed occupancy, quality of service and the income level of the patients. Most hospitals follow different pricing policies depending on the diagnosis and services selected by the patient. Patient opting for general wards and private wards are charged for different rates. But still some of the hospitals are not yet fully commercialized. So services are provided for normal prices. Paramedical centers and beauty clinics and fitness centers charged prices for different rates on the basis of their popularity and the income level of target groups.

3. PLACE:
It is one of the key elements, in the sense that the service provider (hospital) should be easily accessible to the patient. Hospital should be located somewhere which is easily accessible by patients and transport services are also available for them easily. Like hospital located inside a city where transport

facility always available is definitely preferable by patients. Hospital can also use ambulance to offer immediate care to patients in emergency conditions. These are intermediaries for any hospital to take patient

4. PROMOTION:
Promotional activities by a hospital should be able to communicate the right message to patients as well general public. The communication can be regarding the treatment and auxiliary arrangements like transport, communication, diet, facilities for the patient, prices etc. Some hospitals also run special promotional campaigns. For example, MEDICITY issues GOLD CARDS to patients, who entitle them to free monthly checkups and treatment at concessional prices. Media based advertisements and promotional messages displayed on hoardings at public places are gaining popularity with corporate hospitals. Many hospitals run awareness programs like AIDS prevention campaigns, Polio pulse, ALCOHOL and DRUG rehabilitation etc. They also run special campaigns to promote heart check-up or dental check up at concessional rates.

5. PEOPLE:
Without people, healthcare as an industry cannot exist or survive. People include patients,doctors and the staff who treat and take care of those patients. Health care is also a knowledge based industry. Doctors and technicians, who take care of the diagnosis and treatment of patients, form core of this knowledge base. Therefore it is important for any hospital to retain doctors with excellent knowledge and skill, and also the right attitude. Patient should be provided utmost care as their recovery depends on that aspect So, apart from being technically qualified, support staff like nurses and housekeeping personnel should be well-mannered, gentle, hygienic and meticulous. Patients also play a role in service delivery. It is impossible to have an efficient delivery if the patient is not either confident or supportive.

6. PHYSICAL EVIDENCE:
Some kind of document or O.P.D. card given to the patient acts as physical evidence in hospitals. Apart from the location, the ambience of a hospital is also very important for making a positive impression on patients and their attendants. Therefore corporate hospitals should be very careful about presenting the right kind of atmosphere which is both hygienic and relaxing. Apart from interior decoration, lighting

and ventilation, attention should be paid to necessary infrastructure like- electricity, water, sewerage, communication and transportation, security etc. The certification and awards won by Doctors and Hospitals can all be displayed at the reception to install confidence in the customers.

7. PROCESS: Services are provided under two broad categories, services for inpatient and those for
outpatients. The processes for these two services are a little different. Services for inpatients are spread over operation theaters, intensive care units, emergency units, regular wards etc. Apart from the in house treatment, some hospital runs mobile clinics to provide patients easy access to their services.Providing online consultation is also fast gaining popularity in west though in India technical awareness is comparatively low, it may take some time for the masses to welcome such innovative concepts.

RECENT DEVELOPMENTS:
In the rapidly changing health care industry, technological advances have made many new procedures and method of diagnosis and treatment possible. Clinical developments, such as infection control, less invasive surgical techniques, advances in reproductive technology and gene therapy for cancer treatment, continue to increase the longevity and improve the quality of life of many people. In addition, advances in information technology continue to improve patient care and worker efficiency with devices such as hand held computers that record note on each patient. Cost containment is also shaping the health care industry, as shown by the growing emphasis on providing services on an outpatient, ambulatory basis; limiting unnecessary or low priority services, and stressing preventive care, which reduces the potential cost of undiagnosed, untreated medical conditions. These changes will continue to reshape not only the nature of the health care workforce, but also the manner in which health care is provided The last decade has been witness to the giant strides taken by the Indian healthcare scenario, towards modernization and development- gone are the days when those who could afford it had to travel abroad to get highly specialized services such as cardiac surgery, while others had to do without it. Today, patients from the developed Western nations are coming to India to receive specialized medical treatment. Not only is India meeting international standards, but at prices that compare very favorably with developed countries.In India, healthcare is delivered through both the public healthcare system and the private sector. The public healthcare system consists of healthcare facilities run by the central and state governments, which provide services free of cost or at subsidized rates to low-income families in rural and urban areas. In the private sector, healthcare facilities are owned and run by for-profit companies and non-profit or charitable organizations.

In the earlier era, the high custom duties imposed by the government on imported medical equipment was a big deterrent to set up private hospitals offering specialized medical care using state of the art equipment, usually imported from abroad. As a result, there were very few privately run large hospitals but there were many small private practitioners who provided primary and secondary care.The low level of medical insurance was another major problem faced by the private hospitals - not having insurance meant that the patients had to pay for the treatment from their own pockets and not everyone could afford the high costs of private healthcare.The rise in the levels of awareness has led to a surge in the medically insured nos. and now the people want nothing but the best medical care. The innovations whether in business models, in marketing & promotion or in the use of technology, have created unique experiences for patients.

New Medical Technology

New medical technology is being developed all the time from clinical trials for pharmaceuticals to robotics for surgery. Some of the new medical technology that is being developed include targeting HIV, H1N1 virus, autism clusters, EMG controllers, lasers and nanorobots.

Research on new medical technology is often conducted in large commercial research labs and the facilities at universities. Some of the new medical technology such as that on stem cell research, genome mapping, cloning and other high profile investigation will research in breakthroughs.

New DNA sequencing technology used to correctly diagnose genetic disease.

A team of researchers at the Howard Hughes Medical Institute (HHMI) has become the first to successfully diagnose a patient through the use of a high-throughput DNA sequencing technology. The team hopes their technology will offer a way to speed up the identification of new mutations. 'In genetics now we're quite good at finding mutations where we are able to pinpoint the location of a disease-causing gene because it is present in many family members, but we haven't a good method to find mutations that arise anew in an affected child of unaffected parents, the ability to sequence all the genes will enable one to find these new mutations and link them to disease.

A better way to grow stem cells

New synthetic surfaces overcome challenges posed by existing methods for cultivating stem cells.

This image shows rows of human embryonic stem cells that MIT researchers grew on a new synthetic surface. The cells at top (blue) are stained to reveal their nuclei, while the cells in the middle and bottom are stained for proteins that are known to be present when cells are pluripotent.

Human pluripotent stem cells, which can become any other kind of body cell, hold great potential to treat a wide range of ailments, including Parkinsons disease, multiple sclerosis and spinal cord injuries. However, scientists who work with such cells have had trouble growing large enough quantities to perform experiments in particular, to be used in human studies To overcome those issues, MIT chemical engineers, materials scientists and biologists have devised a synthetic surface that includes no foreign animal material and allows stem cells to stay alive and continue reproducing themselves for at least three months. Its also the first synthetic material that

allows single cells to form colonies of identical cells, which is necessary to identify cells with desired traits and has been difficult to achieve with existing materials.

New Cardiac Imaging Device Pioneered

Researchers from Mount Sinai School of Medicine have for the first time developed a way to visualize coronary artery plaques vulnerable to rupture using multi-color computed tomography (CT), an innovation that will lead to better and earlier diagnosis of cardiovascular disease.

A Magnetic Remote Control That Can Rewind a Worm's Wriggle

Most recently, researchers essentially created a magnetic remote control that alters cell function and changes the behavior of a tiny worm. A team of biophysicists from the State University of New York (S.U.N.Y.) at Buffalo used magnetic nanoparticles to control heat-activated protein gates called ion channels embedded in the membranes of nerve cells, allowing the researchers to stimulate a simple reflex in nematode worms at will. People with serious illnesses such as cancer, AIDS, ALS and many others will find hope in the new medical technology that is being developed. Nano robotics will one day assist physicians in destroying specific cells or delivering medicine to precise locations. A limited number of surgical robots are already busy in operating rooms assisting doctors. This may sound futuristic but in some ways the future is already here. A number of years ago CAT scans and MRI's were considered new medical technology but they have become the norm. Some of the other new medical technology coming down the pike will address obesity, heart disease, ADHD, depression and other conditions and diseases.

Operation Table
Operation table manual hydraulic pedal control can be smoothly adjusted to any required position by means of manual system . It can acquire all the below given positions very smoothly:

Reverse Trendelenburg Position Chair Position Gynecology Position Translucent Top Position Reflex Position Kidney position

Surgical Table
We offer operating table that are designed and developed in close association with leading surgeons. Unique and excellent in design, our operating table is cost effective are widely used in all the major hospitals and nursing homes. These are made from premium quality materials to provide comfort to the patients. It is designed in a manner to provide perfect patient positioning.

Suction Machine
We offer Suction Machine that are designed and developed in close association with leading surgeons. Unique and excellent in design, our Suction Machine is cost effective are widely used in all the major hospitals and nursing homes. These are made from premium quality materials to provide comfort to the patients. It is designed in a manner to provide perfect patient positioning

Foot Suction Pump

Our range of vertical foot suction pump creates vacuum with compressing of pedal. These pump are provided with transparent tubing and coupling having unbreakable non collapsible plastic.

Electric Fumigator
Our electric fumigators are manufactured for meeting the needs of air environment sterility in various hospitals operation like operation theaters, intensive care units, ICCU's, neonatal ICU's, AKD units, patients rooms etc. These electric fumigators are also used in air sterility in microbiology lab, pathology labs, blood banks and many more. Its light weight, portable & extremely user-friendly features makes them one of the most used and recommended products in the market.

CONCLUSION:

Earlier, healthcare in India was considered the responsibility of the government and no private players ventured into this industry. Doctors had their small clinics and private practices, but the idea of corporate hospitals was almost nonexistent. However the Indian health care industry has came of age and has become quite competitive in recent times. Corporate hospitals are trying to attract customer by offering value added services. To retain the patients its necessary that the hospitals provide good services to all the patients and that too at affordable prices. The success of the hospital will mainly be dependent on the

people offering the services. So its very necessary for the hospitals that they retain the good doctors and support staff to serve the patients better and be successful