Hospital Marketing Strategy

Hrishikesh Deshmukh

Market Overview of Hospital Industry in India

Public and private hospitals will contribute more than 71% of healthcare sector revenues by 2013 Hospital market in India is expected to reach USD 78 bn by 2013 with private sector contributing USD 65 bn Increasing number of hospitals in Tier-II & for private sector growth Market is fragmented with large number of independent, privately run hospitals Demand for healthcare far exceeds supply due to dismal performance by the government A huge shortage of beds is a major driver for investment in a growing industry Specialty hospitals in particular are expected to grow faster than overall industry due to rise in heart diseases and cancer Revenue recorded CAGR of 12.1%

Per-capita healthcare expenditure has been growing at a fast pace

Per-capita healthcare expenditure increased at a CAGR of 10.3 per cent

over the period for calendar year 2008-11 to USD57.9; the figures is set to touch USD88.7 by 2015

Key players in the market

Company No. of Bed s
8717

Presence

Apollo Hospitals Enterprise Ltd

Chennai, Madurai, Hyderabad, Karur, Karim Nagar, Mysore, Visakhapatnam, Bilaspur, Aragonda, Kakinada, Bengaluru, Delhi, Noida, Kolkata, Ahmedabad, Mauritius, Pune , Raichur, Ranipet, Ranchi, Ludhiana, Indore, Bhubaneswar, Dhaka Theni, Tirunelveli, Coimbatore, Puducherry, Madurai, Amethi, Kolkata

Aravind Eye Hospitals CARE Hospitals Fortis Healthcare Ltd

Max Hospitals

3694

1912

Hyderabad, Vijayawada, Nagpur, Raipur, Bhubaneswar, Surat, Pune, Visakhapatnam Mumbai, Bengaluru, Kolkata, Mohali, Noida, Delhi, Amritsar, Raipur, Jaipur, Chennai, Kota

10307

1100

Delhi and NCR

Manipal Group of Hospitals

4400

Udupi, Bengaluru, Manipal, Attavar, Mangalore, Goa, Tumkur, Vijaywada, Kasaragod, Visakhapatnam

Growing Presence of Private players have been key contributors to growth in hospitals

Snapshot of Market and Potential Growth

Government Private

Nursing Homes Healthcare centers, district hospital and general hospitals Primarily nursing homes and recovery rooms with adequate infrastructure
<30 beds

Mid tier Corporate hospitals with inhouse staff and consulting physicians
30100 beds

Top tier Major corporate hospital chains and specialty hospital

Variable; based on type

>100 beds

Market Share by 2015

19% 30% Growth by 2015 -2% 9% Lower estimate 5% Lower estimate 10% Upper 6% Upper estimate estimate 12% Lower estimate 14% Upper estimate 11% 40%

Fortis Healthcare

Fortis Healthcare Limited is a leading, pan AsiaPacific, integrated healthcare delivery provider. The healthcare verticals of the company span diagnostics, primary care, day care specialty and hospitals, with an asset base in 11 countries, many of which represent the fastest-growing healthcare delivery markets in the world. Currently, the company operates its healthcare delivery network in Australia, Canada, Dubai, Hong Kong, India, Mauritius, New Zealand, Singapore, Sri Lanka, Nepal and Vietnam with 76 hospitals, over 12,000 beds, over 600 primary care centres, 191 day care specialty centres, over 230 diagnostic centres and a talent pool of over 23,000 people.

Marketing Strategy of Fortis Healthcare

Fortis was the first hospital to organize an exhibition in the National Capital Region, wherein the general public could visit all departments of the hospital and get answers from experts. Secondly, Fortis launched a dialysis technician programme for women from the weaker section of society in which they were given free training by the hospital and they will be assimilated in the hospital itself. Apart from organising continuing Medical Education courses (CMEs) almost every week, camps, theres a special OPD where consultants charge Rs 100 only. Theres also a system of taking feedback from patients and visitors about their service.

The website of hospital and group of doctors provide medical advice to the patients through: Email: The patients are asked to email their query on hospital email ID contactus.mohali@fortishealthcare.com. They are issued reference no., which is forwarded to the medical specialty concerned through their emergency
Emergency contact numbers : Patients who need immediate assistance, sexually transmitted disease and other confidential issues can avail this facility. The patients who stay far away from the city are also given online assistance.

Jaslok Hospitals, Mumbai

The Jaslok Hospital & Research Centre is

one of the oldest tertiary care, multispecialty Trust hospitals of the country established in 1973,Mumbai.
Research

activities in various fields in collaboration with other institutions in India & abroad more importantly, the hospital has evolved into a tertiary referral centre for providing advanced, complex problems as well as a training institution.

Services they provide include healthcare,

medical care, organ transplant and they run a training school for nurse.

Marketing Strategy of Jaslok Hospital

The marketing strategy of Jaslok Hospital involves:

Tying up with corporates, some of them being Oil and Natural Gas Commission (ONGC),Mumbai Port Trust (MBT), Bhabha Atomic Research Centre (BARC) and Air India. They have tied up with various travel agent (details available on their website) to facilitate medical tourism. One of the most effective marketing tool is a web site (www.jaslokhospital.net), which is constantly updated by their technical staff.

Other marketing strategies involve:

The hospital conducts free health check-ups like diabetes and cardiac check-ups for the general public They invite foreign faculty and hold joint symposiums with the foreign delegates to share their skills, knowledge and experience. This help in brand building. The hospital has a tie up with Stanford University Medical Centre, US and they hold video conferencing every month with the doctors of the centre, who interact with the faculty of the hospital.

Hinduja Hospitals, Mumbai

P. D. Hinduja National Hospital and Medical

Research Centre was established in 1951.

Their area of specialize include Healthcare

services in various Medical & Surgical specialties, Robotic surgery along with diagnostic, ancillary & support services, emergency intensive care unit. They also conduct training of medical, nursing, paramedical personnel and give more implication of R&D.
Hinduja

Groups foray into For-Profit segment of healthcare delivery They were 1st to get IMC Ramakrishna Bajaj National Quality Award in 2007

Marketing Strategy of Hinduja Hospital

The marketing strategy of Hinduja Hospital involves:

They have strong database of their patients and visitors which they use effectively for marketing. They have system of taking feedback from their patients for continuous improvement of quality of the service. They have tie-up with corporates for medical check-up of their employees which act as a medium of cross selling. They conduct Medical conference invite foreign medical experts and faculties of different hospitals in India and joint symposiums to share their skills, knowledge and experience which help in brand building. On the CSR frontier they have 20% beds reserved for the weaker sections of the society which is funded by the NGO.

Hiranandani Hospitals, Mumbai

Dr. L.N. Hiranandani Hospital located at

the picturesque Hiranandani Garden, Mumbai is a 130 bedded muti-specialty tertiary and quaternary care hospital.
The NABH is an initiative of the quality

of India (A Govt. of India) that is trying to ensure the delivery of the highest quality of healthcare in the country.
The

specialty center include dental surgery, human reproduction, cardiology including angioplasty, bariatric surgery, joint replacement, hip resurfacing, hip arthroscopy, aesthetics and hair rejuvenation surgery.

Marketing Strategy of Hiranandani Hospital

The marketing strategy of Hiranandani Hospital involves:

They aggressively market through their web site (www.hiranandanihospital.org). The AV clip of every facility and critical surgery report is available. They come up with weekly newsletter which talks about specialty services, treatments, child care, customer focus, etc. They publish articles of their doctors which states how to diagnosis different disease, control infection and disease, case reports, energy and resources conservation. The print copies of these articles kept in the hospital serves for cross sell their services. The soft copy of these articles is also available on the website. This helps in creating their brand. As part of CSR activity, they arrange for free eye check up camps close to the slum dwelling. On the World heart day they offer free heart check-up/ cholesterol check-up, conduct angioplasty at concessional rate. On World Aids day create awareness of this life killing disease by educating the weaker section of the society. They have appointed Medical representative who offer commission to the doctor for referral to their patients.

Advertising Strategy for Hospitals in India

Advertisement in media (newspaper like Times wellness, Health Magazine, holding in the catchment area) etc Hand-out /brochures about their service and facility for distribution in hospital, newspaper. Hospital information System (HIS) and Electronic Patients record/database helps in advertisement and promotion. They mass mail about their new facility, service, achievement, and reward to the consumer who in turn gains confidence to avail their services. Hospital website act as an effective tool in advertising & promotion:

Critical surgery information / report is displayed, Pre & Post operation information. Information about new facility, service, achievement, reward Patients are asked to post their query on website/ email; they are given reference no., which is forwarded to the medical specialist concerned. Emergency contact information available on the website, brochures servers as an immediate assistance to the consumers in case of emergency, confidential health issues and also patience who stay far away from the city.

Private Hospitals in Latur

Multi Super Hospitals Gynachspecialty Specialty Hospitals Latur Renapur Ahemadpur 2 210 16 18 31 2 2 No.of Beds

1135 10 80

Jalkot
Chakur Shi.Anantpal Ausa Nilanga

07
12 5 45 33

2
4 2 5 4

4
20 4 110 70

Devni
Udgir

1 3

09
30 385

1
6 59

22
60 1515

About Sri Sai Intensive & Critical Care Center

Established by 5 physicians with combined experience of more

than 70 years. Current Infrastructure & revenue:

General ward : 14 Beds Special Ward : 3 Beds ICU : 8 Beds Revenue : 5 crores per year

Planned/Future Infrastructure & revenue: General Ward : 50 Beds Special Ward : 20 Beds ICU : 30 Beds Revenue : 100 crores

Existing Marketing Strategy

Practitioner Relation Specialist channel

Web Site in Marathi (Regional Language) Local Advertisement with the help of Local News papers. Hand-out /brochures about their service and facility for distribution in

hospital (Regional language)

Medical Camps at rural places near Latur.

Recommendations : Proposed Marketing Strategy

Employer Relations Specialist-Channel to cater employers Rural-Gram Panchayat-Channel to cater rural population
Tie-up with rickshaw wallas Web Site in English (specially for employers)

special email query system through which patients can send their queries to the doctors and as per their query the mail will be forwarded to concerned specialist.

Feed Back Box Hand-out /brochures about their service and facility for distribution in

hospital (In Business Language : English) doctors.

Doctors blog on site Publishing of research articles by specialists and

Recommendations to bring operational efficiency

Token System to bring operational efficiency Payroll system implementation Beds allocation system

Future Market Outlook of Hospital Industry

Favourable Policies on FDI and taxations will increase foreign

participation and boost medical tourism.

Large hospital groups making strategic acquisitions which facilitates

improve wise services.

Evolving concept of health cities, which have scale and provide a

host of satellite service.

Emergence of telemedicine for rural areas with participation from

private sector and government.

Despite increase in number of beds, supply constraints will remain in

top cities

Thank You