Healthcare & Hospital Management

HEALTHCARE & HOSPITAL MANAGEMENT
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KJ SOMAIYA COLLEGE OF ARTS & COMMERCE 1

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MEANING OF SERVICE INDUSTRY
Service includes all economic activities whose output

is not a physical product or construction and is generally
consumed at the time it is produced and provides added
value in forms (such as convenience, timeliness, comfort
or health).
A service is an act of –performance offered by one
party to another. They are economic activities that create
value and provide benefits for customers at specific time
and places as a result of bringing about a desired change
in /or on behalf of the recipient of the service.
The term service is not limited to personal services
like medical services, beauty parlors, legal services etc.
According to the marketing experts and management
thinkers the concept of service is a wider one.
The term services are defined in a number of ways
but not a single one is universally accepted.

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DEFINITION
According to GRONROSS
“A service is an activity or series of activities
of more or less intangible nature that normally not
necessarily take place in interaction between the
customer and service employees and/or physical
resources or goods and/or system of the service
provider which are provided as solution to
customer problems.”
According to KOTLER AND BLOOM

“Service is an activity or benefit that one party
can offer to another that is essentially intangible

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and does not result in the ownership of anything.

Its production may not be tied up to a physical
product.”
CHARACTERISTICS OF SERVICES
1.INTANGIBILITY
2.PERISHABILITY
3.INSEPARABILITY
4.HETEROGENEITY
HEALTH CARE

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Health care industry is a general term standing for

all services related to health care. It refers to the
treatment and management of illness, and the
preservation of health through services offered by the
medical, dental, pharmaceutical, clinical laboratory
sciences, nursing, and allied health professions. Health
care embraces all the goods and services designed to
promote health, including “preventive, curative and
palliative interventions, whether directed to individuals or
to populations”.

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The delivery of modern health care depends on an

expanding group of trained professionals coming
together as an interdisciplinary team. The Healthcare
industry incorporates several sectors that are dedicated
to providing services and products dedicated to
improving the health of individuals. The healthcare
industry includes health care equipment & services and
pharmaceuticals, biotechnology & life sciences.
The particular sectors associated with these groups

are: hospitals, biotechnology, diagnostic substances,
drug delivery, drug manufacturers, medical equipment
and instruments, diagnostic laboratories, nursing homes,
providers of health care plans and home health care.
Health care services generally consist of Hospital

activities, Medical and dental practice activities, and
other human health activities. The last class consists of
all activities for human health not performed by hospitals
or by medical doctors or dentists. This involves activities
of, or under the supervision of, nurses, midwives,
physiotherapists, scientific or diagnostic laboratories,

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pathology clinics, blood bank, ambulance services,

medical insurance, fitness centers, yoga centers, nursing
home, or other Para-medical practitioners.
HOSPITALS

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A number of health problems require intensive

medical treatment and personal care which is not
available in patient’s home or a clinic of a doctor. This is
possible only in a hospital where a large number of
professionally and technically skilled people apply their
skill and knowledge with the help of advance equipment
and appliances.
“Hospital is an integral part of a social and

medical organization, the function of which is to
provide for the population complete health care
both curative and preventive.”
Today the hospital is a place for the diagnosis and

treatment of human ailments and restoration of health
and well being.
The basic function of a hospital is to give proper

treatment to the injured and sick without having any
social, economic and racial discrimination. Some of the
other important functions and services of modern

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hospitals are training of the doctors and nurses, support

to medical research and assistance to all activities
carried out by public health and voluntary agencies to
prevent disease.
Today, hospitals are usually funded by the state, by

health organizations, (for profit or non-profit), health
insurances or charities, including by direct charitable
donations
The world health organization states that the

hospital in an integral part of a social and medical
organization, the function of which is to provide for the
population complete health care both curative and
preventive in nature. The hospital is also a centre for
training of health workers and bio-social research.
CHARACTERISTICS OF
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HOSPITAL INDUSTRY
A service industry like hospital has to offer the best of

services to the patient. A hospital has the following
service characteristics:
1.INTANGIBILITY:
Health services are highly intangible which cannot be
tested or examined before consumption. The intangibility
factor can be compensated by physical evidence like
place, people, equipment, price and communication
material that the patient can see. For an example, at
Lilavati Hospital the aesthetics, interior decoration, the
cleanliness, the hospitality and the attention paid by
employees to patients, the quality of doctors etc pay an
important role to reduce uncertainties with an effort to
add tangibles to intangibles.
2.INSEPARABILITY:
Generally, health services are characteristics by
inseparability. Health services are produced and

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consumed at the same time and cannot be separated

from their providers, whether the providers are people or
medicine.
3.VARIABILITY:
Service variability tries to reduce the variability factor
in order to standardize the quality of service. Health
services are subject to a great degree of variability.
There are variations in services performance offered by
the providers employees depending on skills, moods, etc.
as the services offered by the hospitals are highly
judgmental as and individualized. The various diagnostic
procedures are also not standardized. The variations in
service also depend on the affordability of the patient
and reputation of the hospital.
4.HEALTH SERVICE QUALITY:

Word of mouth is the best form of publicity and it also
plays an important role in setting the platform of
ascertaining service quality. Therefore the satisfied past

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patients of a hospital can bring more number of patients

to that hospital than advertising.
In this context health care organization competing in
such high pitch market have to take all possible measure
to provide quality service consistently.
CLASSIFICATION OF HOSPITALS:
(A) ON BASIS OF MEDICINE.

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1.ALLOPATHIC HOSPITAL
Allopathic hospitals are those hospitals which use
allopathic medicine as the treatment of disease using
conventional medical therapies, as opposed the use of
alternative medical or non-conventional therapies.
2.AYURVEDIC HOSPITALS
Ayurvedic hospitals are those hospitals which uses the
medicines that inherent principles of nature, to help
maintain health in a person by keeping the individual's
body, mind and spirit in perfect equilibrium with nature.
3.HOMEOPATHIC HOSPITALS
Homeopathic hospitals are those hospitals which
practice homeopathic medicines. Homeopathy, or
homeopathic medicine, is a holistic system of treatment.
The system is based on the idea that substances that
produce symptoms of sickness in healthy people will
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have a curative effect when given in very dilute

quantities to sick people who exhibit those same
symptoms. Homeopathic remedies are believed to
stimulate the body's own healing processes.
(A) ON BASIS OF OBJECTIVES:
1. TEACHING CUM RESEARCH HOSPITAL:

These hospitals are teaching based. Health care is
their secondary objective. They are found engaged in
promoting the research activities and training medical
students. Different medical colleges are attached to
these hospitals.
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All India Medical Institute New Delhi and Post

Graduate Medical Education and Research Institute are
good examples.
2. GENERAL HOSPITALS:
The main objective of these hospitals is to provide
medical care. They also offer teaching and research
facilities but these are secondary objectives.
3. SPECIAL HOSPITALS:
These hospitals concentrate on a particular organ of
the body or a particular disease. The main objective is to
provide specialized medical services.

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(C) ON BASIS OF OWNERSHIP
1. GOVERNMENT HOSPITALS:

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The government hospitals are owned, managed and

controlled by
the government
2. SEMI- GOVERNMENT HOSPITALS:
The semi government hospitals are autonomous body.
3. THE VOLUNTARY AGENCIES HOSPITALS:
They are owned and managed by voluntary
organizations
4. PRIVATE HOSPITALS:
Private parties owned and managed private
charitable hospitals
(D) ON BASIS OF SIZE

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1. TEACHING HOSPITAL:
The teaching hospitals generally have 500 beds
which can be
increased according to the number of students.
2. DISTRICT HOSPITAL:
The district hospitals generally have 200 beds
which can be
increased up to 300 depending on the population.
3. TEHSIL HOSPITALS:
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The tehsil hospitals generally have 50 beds that can

be raised to 100 depending upon the population.
PRIMARY HEALTH CENTRES
The primary health centers generally have 6 beds
that can be raised to 10 beds.
MARKETING MIX FOR HOSPITAL

SERVICES.

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Marketing management helps an organization in

rising its potentiality and assists the users by making
available goods or services of their own choice and
capacity.
Thought hospital is a nonprofit making organization

still the significant of marketing practice cannot be
ignored.
The designing of the suitable marketing mix thus

becomes significant to raise the creativity, sensitivity and
acceptability of making decisions.

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PRODUCT MIX:
The main product of the hospital is the medical
services. The services in the hospital differ from one
hospital to another.
There are three categories of services in hospital. They
are as follows:
(A) LINE SERVICES: THE LINE SERVICES INCLUDE:
i) EMERGENCY SERVICES:
In the emergency services, the casualty services
need attention on priority basis. The round clock
service is made available by the casualty
department. This department is specially meant
for patient having sickness of grave nature
requiring immediate treatment. It also serves the
injured patients.
ii) OUT-PATIENT SERVICES:

In the out patient department all patients are
examined irrespective of the degree of illness. This
department is known as OPD. While constructing
the OPD there should be a gap between the indoor

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area and OPD. The OPD should be connected with

X-ray, laboratories and other supportive services.
The doctors, para-medical officers or nurses
attending the OPD should be well trained. So that
the nurses feel dissatisfied. The examination or
investigation of diseases is the most important
service offered by OPD. It is most sensitive point
where the hospitals may be successful in
projecting their fair image.
iii) IN-PATIENT SERVICES:

After the patient is examined in the OPD they
are advised admission in the in-patient ward if
necessary. The in-patient wards are general or
private. The patient is required to take decision
regarding his admission. The charges are different
for private and general wards. The government
hospitals do not provide private wards.
iv) INTENSIVE CARE UNIT:

The ICU is considered to be the heart of the
hospital. It is meant for those patients who require
special treatment. The staffing pattern of the ICU
should be scientifically planned so that the related

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patient is given proper medical and without a

break.
v) OPERATION THEATRES:
Sophisticated equipments and appliances should
be made available in an operation theatre of a
hospital. The standby power arrangement is very
important which affects the performance of OT. It
is also important that the OTs should be manned
by the expert and efficient doctors, nurses and
para-medical officers. An important facility that
every OTs need is integration with the blood bank.
(B) SUPPORTIVE SERVICES:

Sterilization, supply and maintenance of instruments,
materials and garments are some of the supportive
services that enrich the hospital services. The catering
department supplies meals in the hospitals. It comprises
of kitchen, dinning, bulk food etc. Heated trolleys should
be used for the transportation of meals to the patients.

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The pharmaceutical services are also important and they

influence the treatment programme of hospitals. The
other supportive services are:
 Hospital medication
 Official laundry
 Laboratories
 Clinical pathology
 Blood bank
 Pathological anatomy
 Radiology department and
 Nursing services
(C) AUXILIARY SERVICES:

The auxiliary services consists of
 Registration and indoor case records
 Stores management
 Transportation management
 Mortuary arrangement
 Dietary services
 Engineering and maintenance and
 Security arrangement.
PRICE:

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Price is an important element in the marketing mix.

Prices charged by a hospital depend on the treatment
and facilities given to the patient. Since the service is
intangible it is difficult to determine the price of a
particular service. The pricing strategy adopted by a
hospital does not depend on the price offered by
competitors but the nature of facilities and service
offered.
The government hospitals adopt cost-free pricing

strategies whereas the trust and private hospitals adopt
subsidized or cost-based pricing strategies.
The pricing decisions in the Indian conditions help

hospitals in sub serving the interest of general masses. In
a developing country like India; where the level of
income of the general masses is found low, it is
important that pricing decisions are liberal to the
economically weaker sections of the society. The people
living in a welfare state have high hopes and aspirations
from the government. They like cost-free services though
they belong to affluent sections of the society.

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The application of marketing principles in the

hospital services aims at pricing the services in tune with
the paying capacity of our population.
In the Indian setting, a good number of hospitals are

managed and maintained by the government. Some of
the hospitals are managed by the charitable trusts
whereas as some are managed privately. The
government hospitals generally adopt cost free pricing
strategies whereas trust and private hospitals adopt
subsidized or cost-based pricing strategies. Some private
hospitals also adopt cost plus subsidy based pricing
strategies.
The basic objective of hospital is not profit

maximization but to provide quality service at a
reasonable price.

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PROMOTION:
In the hospital marketing, the promotion strategies

also need a careful approach. It is surprising that users
lack information regarding the nature and type of
services made available in a particular hospital.
The promotion in hospital services can be personal

and impersonal. Personal promotion comes from person
to person whereas impersonal promotion can be through
advertising, publicity and sales promotion measures.
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In hospital services impersonal promotion is

important as advertising and publicity helps the users in
utilizing the services. The personal promotion measures
could come from doctors, Para-medical officers and
nurses and staff if they impress the users of services with
their behavior. Application of social advertising in found
significant in hospital service. Different advertisement
covering family planning, smoking, communicable
diseases and their harmful effects can reach to the target
audience and bring a reduction in the number of hospital
users.
Publicity measures have the acceptability with high

intensity. Hospitals with the support of academicians and
professionals can publicize the services of hospital in
journals of medical sciences and also through papers and
articles.
This will help hospitals in rationalizing the services
vis-à-vis minimizing inconveniencies to the patients and
attendants. The health consciousness or nutritional
awareness is also required to be included in the
promotion plan of the hospital.

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There is also a growing need for effective public

relations. The opinion surveys can be carried out likewise
promotional strategy can be drawn.
The major difference between marketing of hospital

services and other services is that the other services are
required to expand the market by transforming the
potential users into actual users but the hospital services
have to make effort for contracting the number of users
through social Advertising and Awareness.

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PLACE AND SURROUNDING:
The selection of place is very important in order to

avoid the inconveniences to the users in reaching to the
hospital in time. Adequate transport and communication
facilities should be available where the hospitals are
located. Congestion and atmospheric pollution should be
avoided. Beautification of the surroundings and the
premises should be undertaken
While selecting a suitable site for the location of a

hospital, the management should see that infrastructural
facilities are available. In addition the site should be free
from the problem of industrial pollution and plantation,
gardening and drainage plans must receive due
attention.

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PEOPLE:
People are also an important element in marketing

mix. They play an important role in the provision of
services. The behavior and the attitude of the personnel
providing the services will influence the customers
overall perception of the service.
A satisfied customer is source of influencing other

customers. It is rightly said advertising and sales
promotion may create temporary customers but a
satisfied customer creates a customer who in the bargain
increases the chain.
Hence it is necessary that the staff in the hospital

are trained to provide quality patient care with a human
touch. This can be done by:

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I. Motivating the employees to be efficient, dedicated

and loyal to the organization.
II. Use of latest technology.
III. Providing continuous- on- job training to the
employees.
IV. Using the services of professionally competent
Medical Consultants.
Besides this warm ambiences with cheerful and
efficient staff goes along way in building long-lasting
relationship.
PROCESS:
Process has been the subject to study in the
manufacturing but of late it has been given much
attention in the service sector. Process is that set of
activities that takes an input, convert it, and add value to
the input and creates an output finally.
The processes are designed by blue prints that set a
standard for action to take place and to implement the
service.

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In a hospital the process is divided into 3 phases. They

are:
1. The joining phase which includes:

• Patient’s arrival
• Registration and case paper preparation
1. The intensive consumption phase: which

includes:
• Patient’s diagnosis.
• Treatment
• Instructions to the patient regarding precautions
to be taken, medicines and diet.
1. The detachment phase:

• Discharge of the patient.
• Payment of the bill at the billing counter.
Finally at the departure stage the patient is
requested to fill an evaluation form by which the hospital
authorities come to know the level of satisfaction derived
by the patient. The suggestion of the patient are always

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valued and if appropriate implemented for improving the

services of the hospital.
Customer- supplier relationship in the process:

If we take a close look at each department in the
hospital we notice that each department in the hospital
serves the needs of another department. For an example,
the billing department serves the needs of the finance
department or the purchase department serves the
needs of the stores.
In a way each department is a customer to another

department. While at the same time it might be a
supplier to another department.
Each department is an internal customer of the other

department. It is only when unit of the hospital
understands who their customers are and what their
needs; the hospital will be able to give the best service in
the most efficient way to the patient.

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PHYSICAL EVIDENCE:
The environment in which the service is delivered

with physical or tangible commodities and where the firm
and the customer interact is called the physical evidence.
Physical evidence plays a very important role in hospital
services. It makes a huge impact on the customers, as it
is a means through which he evaluates the service.
Modern hospitals need to create good ambience

because when a patient walks into the hospital he
immediately form an opinion about the hospital.
There is a dress code for the staff which indicates

professionalism and to maintain discipline. The clientele
that goes to the hospital is already disturbed and
unhappy; therefore the staff is trained to be
understanding, warm and comforting.

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It is necessary for the hospital to be well organized and

special care should be taken to maintain hygiene,
cleanliness and the whole hospital should be well lit.
PRIVATE HOSPITAL
A private hospital is a hospital owned by a For-profit
company or a non-profit organization and privately
funded through payment for medical services by patients
themselves, by insurers, or by foreign embassies.
PRICING STRATEGY OF PRIVATE HOSPITALS
• Cost- based pricing
• Competition based pricing
• Demand based pricing
• Perceived value
REASONS FOR GOING PRIVATE
a. COMFORT AND PRIVACY:

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People turn towards private healthcare for a variety of

reasons. Some want the comfort and privacy of their
room, a choice of menus and suite facilities.
b. BETTER ENVIRONMENT:
An environment of private hospital is significantly
different to that of government hospitals. You will almost
certainly receive a private, well appointed room, possibly
with suite facilities, and partners or parents may be able
to stay.
c. COMPLEMENTARY SERVICES:
Some services are either not available or have only
limited availability in the government hospital, but are
offered by private hospitals. Services such as
complementary newspapers, fax, phone use etc. are
provided by private hospitals. Apart from this
It provides complementary therapies.
d. GREATER EFFICIENCY AND QUALITY OF
SERVICE:
Private firms have profit incentives to cut costs and
maintain a good service, which is essential for attracting
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customers. Private firms also face competition which is

another incentive of better quality services. These factors
are absent in government public services.
LIST OF SOME PRIVATE HOSPITALS

IN MUMBAI:
➢ Asian Heart Institute, Bandra (E)
➢ Lilavati Hospital, Bandra (W)
➢ Breach Candy Hospital, Bhulabhai Desai Road
➢ Somaiya Prakalp, Chembur
➢ Hindu Mahasabha Hospital, Ghatkopar (W)
➢ Sarvodaya Hospital, Ghatkopar (W)
➢ Hinduja Hospital, Mahim
➢ Jaslok Hospital, Peddar Road
LILAVATI HOSPITAL

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Lilavati hospital & Research Center (LHRC) is a three

hundred bedded multi Specialty hospital located in the
heart of Mumbai which is very close to the domestic and
international airport. It encompasses modern health care
facilities and state of art technology dedicatedly
supported by a committed staff that brings to fore our
broad health care system. LHRC is a continuous
commitment to Quality human care, which truly reflects
the essence of our motto “More than Health Care, Human
Care.”Being a center of medical excellence where
technology meets international norms and standard they
have got what it takes to be a Pioneering Quality Health
care institute that is also one of the most sought after
and ” Patient Friendly” hospitals.

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SERVICES AT LILAVATI HOSPITAL
24 Hours
Chemist Shop
All the medicine needs are taken care of at its day and night
chemist shop. Right from rare drugs to surgical material, this
shop stocks them all. Stringent quality control ensures that
medicines at the shop are completely updated and are of the
highest quality
Ambulance Service

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State-of-the-art Ambulances at the hospital, equipped to

handle most complex emergencies are available to the patients 24
hrs of the day and night. These ambulances carry, as standard
equipment, a ventilator, a Defibrillator, Oxygen and all the other
life saving drugs. Staff manning these ambulances is well trained
in managing emergencies in their respective fields.
The hospital boasts of a cardiac ambulance service
committed to provide patients with the highest level of Medicare
and comfort during transport. The new air suspension technology
of the vans, state of art medical equipment for monitoring and
sound management of life threatening emergencies and special pick
up services from airport for foreign patients helps reduce risk and
provide critical care at the time of an emergency.
ATM and
Banking services
The hospital provides ATM and BANKING services within

the hospital area for the easy access of money for the customers.
Cafeteria

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First class Restaurant ambience offers a wide range of pure

vegetarian cuisine to suit most tastes.
From delicious Breakfasts and Lunches to mouth-watering
snacks and Dinners, wide choice awaits the gourmet at this
Cafeteria.
This cafeteria is well supported by the central kitchen in the
Hospital, which also serves the need of all the patients in the house,
serving them healthy vegetarian food.
Central
Dispatch
The Central Dispatch Department is a one-point contact for

collection of reports for all its OPD patients thus facilitating a
smoother flow. This department works from 9.00AM till 8.00PM
everyday except on Sunday and Public Holidays.
Gift Shop
Gifts, Cards, Books, Mouth watering Chocolates…. some of

the many things that are available at this cute store within the
premises of Lilavati Hospital.

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Patient Coordinator for the

Critical Care Units
A vital link between the relatives of the critically ill patients

in an ICU and the spatial, this person is able to provide you with
current and updated information on your loved ones who are
getting well with it.
Facilities for the stay of the relatives of Critical Patients along
with free of charge tea and coffee is available in the hospital.
SEWA
The social service department of Lilavati Hospital serves the

health needs of all the people irrespective of class, caste, religion or
social background.
It seeks to build a bridge between needy patients and the fast
moving medical technology of the third millennium. SEWA
extends a helping hand and the hope of good health regained...
Deserving patients are referred to us and many have received
free medical and surgical services including expensive procedures

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like CABG, Valve replacement, Cancer and Orthopedic surgery.

SEWA has undertaken numerous projects of welfare of those most
in need and is always on the lookout for more ways to extend a
helping hand.
Temple &
Meditation
Room
Serene and calm, this is exactly what you get in the feet of The
LORD. Places where you can bow humble and leave the rest to
HIM.
TPA
Assistance
Desk
One point contact to facilitate interaction between the Hospital,

your insurance provider and you. This desk will assist in ensuring
that all the paper work regarding your medical insurance is
managed efficiently and effectively.

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Yoga
Center
Experience the healing power of YOGA.
MEDICAL CARE

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Cardiology
The Department of Cardiology is one of the leading

departments of the hospital and is one of the
foremost in the Country.
Many of Mumbai's leading Cardiologists practice at
the Lilavati Hospital to ensure that comprehensive
care at par with international standards is given to
patients of any cardiac problem.

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The 21st Century promises new excitement on the

frontier of brain development. At Lilavati Hospital
and Research Centre are gearing up to absorb this
excitement and have established a comprehensive
Neurosciences Department.
This will have services to cater to problems related to
Neurological diseases of the Brain and Spinal Cord
too.
The Multispecialty Intensive Care Unit at Lilavati

Hospital & Research Centre has a state-of-art unit in
India.
• Equipped with latest life support equipment such
as the ventilator and monitoring equipment, pulse ox
meters, EEG, 2-D Echo machines etc.

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• The Intensive Care unit is one of the five training

centers in critical care to be recognized nationally by
the Indian Society of Critical Care Medicine.
In a general hospital setting where the focus is on

super specialty and tertiary care, Psychiatry has an
important role to play. This area of functioning is
known as Consultation Liaison Psychiatry. Here the
psychiatrist acts as a consultant to medical and
surgical units.

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The daily psychiatry OPD at Lilavati Hospital caters to

such needs. Patients with problems such as
Depression, Schizophrenia, Anxiety Disorders,
Addictions and sexual dysfunctions are offered
treatment and Counseling, Drug-Therapy,
hospitalization. ECT's are the available therapeutic
methods for such illnesses

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The Pathology Department of Lilavati Hospital and

Research Centre constantly endeavors to provide
accurate and precise diagnosis, to facilitate
appropriate patient management and care. Under the
expert guidance of qualified and experienced
Pathologists and Microbiologist, the department
updates and incorporates advanced technologies,
introduces new tests from time to time, and keeps
abreast with the latest developments in the field of
laboratory medicine.
The well equipped, laboratory with top-of-the-line
automated equipment, is operated round the clock by
trained qualified personnel. It offers rapid,
reproducible results, maintaining a high standard, by
participating in internal and external quality control
programs, on a regular basis.

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HEALTH CHECK UP
PATHOLOGY TESTS:

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• CBC
• ESR
BLOOD GROUP
• TESS FOR DIABETES
• BLOOD SUGAR: fasting
• TESTS FOR LIVER DISEASES: SGOT
• TESTS FOR HEART DISEASES: total cholesterol
• TESTS FOR KIDNEY PROFILE: SERUM CREATION
URINE (routine and microscopic)
STOOL (routine and microscopic)
• CONSULTATION: physician.
• DIAGNOSTIC TESTS: ECG
X-RAY CHEST
VISION CHECK / OPTOMETRIST.

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TESTIMONIALS
SHRI AMITABH
BACHCHAN
December 14th 2005

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My dear Shri Narendra Trivediji,
This is to put on record my sincere appreciation for the very

efficient care rendered to me by your staff and doctors during my
recent illness at the Lilavati Hospital.
You have a very dedicated and qualified team of nurses and doctors
working in great unison. This has enabled exceptional care for
patients and given them a huge level of comfort.
I would like to compliment the management and the organization at

Lilavati for creating a wonderful atmosphere of medical
proficiency and hope that you will continue to do the good work
that you have set yourselves for the betterment of humanity.
Please convey my very personal thanks to the concerned people,

especially in the operation theatre, the ICU and the staff managing
the floor I was on. I would also like you to convey my sincere
regards to the security that must have gone through a trying time
during this period.
Warm regards once again and thank you for all the help and care.
Amitabh Bachchan.

(SSM ) TY BMS
SHRI BALASAHEB THACKERAY
I visited Lilavati Hospital today. I was stunned to see such a unique

landmark in the capital of Maharashtra i.e. Mumbai! It is really
fantastic; large corridors, spacious rooms and on top of, large
hearted people. I found them working like busy-bees. I was equally
surprised when you enter any hospital in town or in any city, it
smells of a very typical hospital odor, but in Lilavati Hospital, I
smelled lovely aroma which makes you visit the hospital not as a
patient but to watch the architectural concept. The structure does
not look like a hospital but it looks like a palace! That is the beauty
of it
Balasaheb Thackeray
25.10.1997
GOVERNMENT HOSPITALS
A government hospital is a hospital which is owned

by a government and receives government funding. This
type of hospital provides medical care free of charge, the
cost of which is covered by the funding the hospital
receives.

(SSM ) TY BMS
PRICING STRATEGY OF
GOVERNMENT HOSPITALS:
LIST OF SOME GOVERNMENT

HOSPITALS IN MUMBAI:
(SSM ) TY BMS
• J. J. Hospital, Byculla
• Rajawadi Hospital, Ghatkopar
• Tata Memorial Hospital, Parel
• I.I.T. Hospital, Powai
• Sion Hospital, Sion
• Harilal Bhagwati Municipal General Hospital, Borivali
(W)
SIR J.J. GROUP OF HOSPITALS

Sir J. J. Group of Hospitals is the largest referral
hospital in the Maharashtra State.
Sir J. J. Hospital alone has more than 30,000 indoor
admissions every year and more than 5 lakhs out
patients every year. The hospital being a Government
hospital is giving free service to all the patients.
J. J. Hospital has played a great role in management
of victims of 1992 Bombay riots, Bomb blast 1994,
Bhiwandi poisoning 1997 tragedies and 2002 Mumbai
twin-bomb blasts.
"Jeevandayee Yojna", a novel scheme of Govt. of
Maharashtra, is being implemented by J. J. Hospital for

(SSM ) TY BMS
patients below poverty line for expensive operations of

Heart, Kidney, and Brain & Orthopaedic surgery.
There is a separate OPD building. All OPD units are
functioning well. There are facilities of all laboratories, X-
ray, ECG, C.T. Scan, MRI, minor surgery. The average
daily OPD attendance is around 1500, with annual OPDs
patient over 5 lakhs.
CASUALTY / EMERGENCY:
There is 24 hour casualty/Emergency service dept at
ground floor of main building. CMOs/ RMOs are available
round the clock for patient care. There are facilities for
ECG, X-ray, dressing & dispensing. There is emergency
ward with 20 beds and minor OT. The daily attendance is
around 140 and annually around 50,000.
OUT PATIENT DEPARTMENTS(OPD)

(SSM ) TY BMS
WARDS:
There are 45 wards, with bed strength 1352. Daily in
patients are around 1200.
OPERATION THEATRES:
There are 12 OTs with 35 operation tables. On an
average 57 operations are done per day with annual total
around 18,000 surgeries.
SUPER-SPECIALITY DEPARTMENTS:
The Patient from various parts of Maharashtra state and
from all over country come for treatment at this Institute.
There are super speciality depts. of Cardiology,

(SSM ) TY BMS
Cardiothoracic surgery, Neurology, Neurosurgery,

Nephrology, Urology, Plastic surgery, Pediatric surgery.
M.R.I./C.T. :
There is facility of MRI/CT scanning CT scan Soma tom 4A
and MRI Magnetom Vision is the top of the line and has
sub second scanner with latest gadgets. This is first of its
kind in Maharashtra State.
PRE-CLINICAL DEPARTMENTS:
• Anatomy
• Physiology
• Biochemistry
• Para-clinical Department:
• Pathology
• Microbiology
(SSM ) TY BMS
• Forensic Medicine
• Pharmacology
• Preventive & Social Medicine
CLINICAL DEPARTMENTS:
1. MEDICAL SPECIALTIES
• General Medicine
• Pediatrics
• T. B. & Chest
• Skin & V. D.
• Psychiatry
• Radiology
• Anesthesiology
2. SURGICAL SPECIALTIES
• General Surgery
• Orthopedics

(SSM ) TY BMS
• Ophthalmology
• Otorhinolaryngology (ENT)
• Obstetrics & Gynecology
3. MEDICAL SUPER SPECIALTIES

• Cardiology
• Neurology
• Nephrology
4. SURGICAL SUPER SPECIALTIES

• Cardiovascular and Thoracic Surgery
• Neuro-Surgery
• Pediatric Surgery
• Plastic Surgery
• Urology.
ALLIED SERVICES:

(SSM ) TY BMS
• Dentistry
• Physiotherapy
• Blood Bank
• Eye Bank
• Milk Bank
• Bio Medical waste Management
• Disaster Management
• Nursing
• Body/Organ donation
• Institute of Nursing education

(SSM ) TY BMS
TESTIMONIAL
J.J Hospital is a multispecialty hospital for the poor and
needy. It is one of the big 4 government hospitals in
Mumbai. Patients ranging from all strata of society n from
far off places get quality care at a very low cost. Really a
boon for poor mumbaikars n Indians
Positives all specialties and superspecialities are

available with best doctors from all over India
Negatives too much of patients which reduces the quality

of care tat can be provided.
Worth the price? Yes
Government hospital helps the weaker section of the

society for their health care by providing them the
medical facilities at low cost or at free cost depending
upon their income level.
It is the government hospital who first takes the initiative
for treating the epidemic of diseases in the country.
(SSM ) TY BMS
Since government hospitals are funded by government

itself, high cost machine required for medication can be
easily made available.
CURRENT SCENARIO OF THE GOVERNMENT

HOSPITALS IN MUMBAI:
1) Repeated visits of the patients are very common:
• Because,
• Doctor not available in previous visit-Failed to get
appointment.
• Admission to ward not available.
• Operation theatre was not free.
• Diagnostic lab failed to take sample.
2) The services provided by the government hospitals

are rated as neither poor nor good by the customers.
3) It is sad to state that a no. of doctors in most

government hospitals are open to bribe and lack
behavioral training which makes the task of satisfying the
users difficult.

(SSM ) TY BMS
4) Common regularities such as,

• Medicines unavailable.
• Doctors suggest a visit to their private clinic.
• Doctors refer to private diagnostic centers.
• Over-prescription of medicines.
• Bribes demanded by staff.
• Diagnostic tests are done even when unnecessary.
• Doctors are absent.
CHARITABLE TRUST
Trust created for advancement of education,
promotion of public health and comfort, relief of poverty,
furtherance of religion, or any other purpose regarded as
charitable in law. Benevolent and philanthropic purposes
are not necessarily charitable unless they are solely and
exclusively for the benefit of public or a class or section
of it. Charitable trusts (unlike private or non-charitable
trust) can have perpetual existence and are not subject
to laws against perpetuity. They are wholly or partially
exempt from almost all taxes.
LIST OF CHARITABLE TRUSTS IN MUMBAI:

(SSM ) TY BMS
• Sr.George Hospital
• Kama Hospital,
• Sion Hospital (LT Hospital)
• K.E.M. Hospital, Parel
• Dr.K.B. Babha Hospital, Bandra
• Rajawadi Municipal General Hospital,
Vidyavihar
NON-GOVERNMENT ORGANIZATIONS
Non-governmental organization (NGO) is a term that
has become widely accepted as referring to a legally
constituted, non-governmental organization created by
natural or legal persons with no participation or
representation of any government. In the cases in which
NGOs are funded totally or partially by governments, the
NGO maintains its non-governmental status and excludes
government representatives from membership in the

(SSM ) TY BMS
organization. Unlike the term intergovernmental

organization, "non-governmental organization" is a term
in general use but is not a legal definition. In many
jurisdictions these types of organization are defined as
"civil society organizations" or referred to by other
names.
LIST OF NGO’S IN MUMBAI:

• C.C. SHROFF Self Health Center, Goregaon(W).
• Helpage India, Andheri (W).
• Indian Council for Mental Health, Girgaum.
• Seva Dhan, Andheri (w).
• Smile, Walkeshwar.
• Nirmala Niketan, Andheri.
SWOT ANALYSIS OF HOSPITAL

INDUSTRY

(SSM ) TY BMS
STRENGTH:
a) Quality of doctors, nurse and staff

b) Medical facilities and equipments & infrastructure
(Ac room, phone lines etc)
c) Ambience and general atmosphere of the hospital
d) Attitude of staff, even the menials.
e) Specialization.
f) Low pricing in public hospitals due to government
aid
WEAKNESS:
a) The “I DON’T CARE “attitude of the government

hospitals.
b) Medicine and drug fraud by the menials. Even organ
selling by doctors to make more money.
c) The patient is completely at the mercy of the doctors

(SSM ) TY BMS
OPPORTUNITY:
a) More training of the staff for improving their

behavior and medical knowledge.
b) To increase the facilities they provide.
c) To become more specialized in various fields
THREATS:
a) The Government is reducing the grants given to

hospitals, thus making it impossible to cater to the
poor people
b) The unions of menials and even doctors, they even
go on strike, disrupting the functioning of the entire
health care unit
c) Competition from new entrants.

(SSM ) TY BMS
CHALLENGES OF HEALTHCARE
INDUSTRY IN INDIA
There is a limited network of health/social security

schemes such as the employees state insurance schemes
[ESIS], the central government health scheme [CGHS]
and some community based and employer based
schemes.
This covers 100 million people which is about 10% of
population.
In India the access and availability is less than
satisfactory. Delivering health care to the rural Indian
population is a great challenge as the medical
infrastructure is minimal over here. Even in the urban
areas where services can be more readily established
little or no data for pricing the products is an issue for
insurer to resolve.

(SSM ) TY BMS
The orderly development of healthcare may be

hampered due to continuation of some unethical
practices by some healthcare practitioners.
The Indian market is very price conscious. Nearly 60
to 70 percent of the healthcare expenditure comes from
the self-paid category. However the Industry is currently
undergoing a dramatic transformation with new
segments being defined and created within the broader
health section.
In spite of these, challenges with around 90% of the
population depending on self-finance or state hospitals,
the potential market is big for insurance, provided they
capture the interest and provide relevant products and
services to the Indian consumer.
In India the healthcare industry is expected to grow
more than double within the next decade. According to
McKinsley. Report the estimated spending which was Rs.
86000 crores in 2001 would cross the Rs. 200000 crore-
mark by 2012.
In order to meet the rising demand, India would have
to invest in infrastructure and create cost-effective
facilities. To increase the customers all over the world, it
should focus on marketing.

(SSM ) TY BMS
The hospitals can use various strategies to retain its

clients as well as increase the number of patients such
as:
1. Developing infrastructure.
2. Getting new technology.
3. Widening the line of services.
4. Promoting the services to customers.
5. New methods of service delivery.
6. Improved emergency-room services.
7. Training and recruitment of staff.
8. Adding new features to existing services.
9. Guest programmes to motivate employees to care
for patients.
10. Implementing feedbacks and complaints.
11. Handling service recovery systems.
12. Marketing on the internet and finally,
13. Cutting cost and marketing them.
Besides this the government should launch certain
initiative such as stimulating private investors, inviting

(SSM ) TY BMS
international healthcare brands to invest Indian facilities,

stimulate growth of private social and community
insurance and reform the government’s role as a service
provider.

(SSM ) TY BMS
QUESTIONNAIRE OF ICON HOSPITAL
Q. What is the hierarchy of the hospital?

Ans The hierarchy consists of:
a. The CEO- Mr. Sanjit Paul
b. Six consulting doctors who themselves are the
directors of the hospital.
c. Three Administrative heads and two HR heads.
--------------------------------------------------------------------------------
-------------
Q. How many number of departments are there in the
hospital?
Ans. There are basically two major departments that is
A. CLINICAL
B. NON-CLINICAL
A. CLINICAL DEPARTMENTS:
1. OPERATION THEATER
2. ICCU

(SSM ) TY BMS
3. ICU 1
4. ICU 2
5. CARDIAC ICU
6. Other departments- Pathology, Pharmacy, Dialysis
unit, City Scan , X-RAY, Sonography, ECG (Electric Cardio
Graph ), 2D ECHO, Stress test, PFT(Pulmonary Function
Test)
B. NON-CLINICAL
1. MARKETING
2. HUMAR RESOURCE
3. OPERATIONS
4. FINANCE
5. INFORMATION TECHNOLOGY
--------------------------------------------------------------------------------
------------
Q. Number of staff in the hospital?
Ans. There are 167 staff employed in the hospital which
consist of :

(SSM ) TY BMS
a. 41 Nurses
b. 44 Doctors
The rest staff consist of receptionist ward boys, peons etc
--------------------------------------------------------------------------------
--------------
Q. What are the different types of Ambulance used?

Ans. There are three types of Ambulances:
a. General
b. Advance
c. Cardiac
a) General Ambulance is basically a normal

Ambulance generally used to transport patients from
house to hospital or vice versa.
b) Advance Ambulance is basically used for the
transport of critical patient generally having four
staff members along with assistant doctor.
(SSM ) TY BMS
c) Cardiac Ambulance is especially for heart patient

who consists of 6 staff members and a major doctor
with necessary machinery and equipments.
--------------------------------------------------------------------------------
---------------
Q. What is the procedure from admission to discharge
of the patients?
Ans. There era basically two types of admissions
a. Normal admissions.
b. Emergency admission.
In the normal admission the following formalities are

followed:
1. The arrival of the patient.
2. Registration.
3. Diagnosis.
4. Treatment.
5. Information about future actions.
6. Discharge of the patients.

(SSM ) TY BMS
7. Payment.
8. Fill the evaluation form.
In case of emergency admission, the patient is

admitted first and then the registration formalities
are completed.
--------------------------------------------------------------------------------
--------------
Q. How is the payment done by the patients?

Ans. 1. The hospital only accepts payments through
credit cards, debit
Cards and cash.
2. If any patient is in relation with any working
members of the hospital than 10% discount is
granted.
3. Apart from this, payments are also adjusted
through med claims and insurance.
--------------------------------------------------------------------------------
------------

(SSM ) TY BMS
Q. Who takes the major decisions in the management

and services?
Ans. The major decisions are taken in the board
meeting of the
of directors every week.
--------------------------------------------------------------------------------
-------------
Q. What is done in case the number of patients exceeds
the hospital
capacity ?
Ans. In such cases, they do not admit the patients and
suggest
them some other hospital through their contacts.
--------------------------------------------------------------------------------
--------------
Q. In case of an extremely critical case if the doctor is
unavailable then what are the steps taken by the
hospital?
Ans. Generally, such cases do not occur but if such
situation arises
then external doctors are called to treat the patient.
(SSM ) TY BMS
--------------------------------------------------------------------------------
--------------
Q. what is the criteria for selection of the nurses and
what is the nurse bed ratio?
Ans: The criteria for selection of nurses is GNB
(General Nursing) or BSc..If the above criteria is
satisfied then personal interview is conducted
through which capable applicant are selected.
The Nurse-Bed ratio is 5:4 i.e. 5 Nurses for every 4 bed.
--------------------------------------------------------------------------------
---------------
Q. Are you satisfied with the performance of internal
staff?
Ans: Yes, we are fully satisfied with our internal staff
as they give their 100% as per the expectation.
The only barrier is the language as most of the
nurses come from different parts of nation. Hence,
this area is improved by giving necessary training.
--------------------------------------------------------------------------------
--------------
Q. Like other business organization, does hospital
industry have scope of staff promotion?
(SSM ) TY BMS
Ans: There is no scope for promotion of the doctors as

such but other staff can be promoted.
--------------------------------------------------------------------------------
---------------
Q. Do you think Indian hospital will match the
management standards of international hospital?
Ans: In terms of IT & Modern technology we are as per
International standards but when it comes to
administration, India lacks behind because of its
easy going (“CHALTA HAI” kind) of attitude.
---------------------------------------------------------------------------------------------------------------------
---------------------

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HEALTHCARE & HOSPITAL MANAGEMENT

KJ SOMAIYA COLLEGE OF ARTS & COMMERCE 1

KJ SOMAIYA COLLEGE OF ARTS & COMMERCE 2

KJ SOMAIYA COLLEGE OF ARTS & COMMERCE 3

KJ SOMAIYA COLLEGE OF ARTS & COMMERCE 4

KJ SOMAIYA COLLEGE OF ARTS & COMMERCE 5

KJ SOMAIYA COLLEGE OF ARTS & COMMERCE 6

KJ SOMAIYA COLLEGE OF ARTS & COMMERCE 7

MEANING OF SERVICE INDUSTRY

Service includes all economic activities whose output

KJ SOMAIYA COLLEGE OF ARTS & COMMERCE 8

According to KOTLER AND BLOOM

KJ SOMAIYA COLLEGE OF ARTS & COMMERCE 9

and does not result in the ownership of anything.

KJ SOMAIYA COLLEGE OF ARTS & COMMERCE 10

Health care industry is a general term standing for

KJ SOMAIYA COLLEGE OF ARTS & COMMERCE 11

The delivery of modern health care depends on an

The particular sectors associated with these groups

Health care services generally consist of Hospital

KJ SOMAIYA COLLEGE OF ARTS & COMMERCE 12

pathology clinics, blood bank, ambulance services,

KJ SOMAIYA COLLEGE OF ARTS & COMMERCE 13

A number of health problems require intensive

“Hospital is an integral part of a social and

Today the hospital is a place for the diagnosis and

The basic function of a hospital is to give proper

KJ SOMAIYA COLLEGE OF ARTS & COMMERCE 14

hospitals are training of the doctors and nurses, support

Today, hospitals are usually funded by the state, by

The world health organization states that the

A service industry like hospital has to offer the best of

KJ SOMAIYA COLLEGE OF ARTS & COMMERCE 16

consumed at the same time and cannot be separated

4.HEALTH SERVICE QUALITY:

KJ SOMAIYA COLLEGE OF ARTS & COMMERCE 17

patients of a hospital can bring more number of patients

(A) ON BASIS OF MEDICINE.

KJ SOMAIYA COLLEGE OF ARTS & COMMERCE 18

have a curative effect when given in very dilute

(A) ON BASIS OF OBJECTIVES:

1. TEACHING CUM RESEARCH HOSPITAL:

All India Medical Institute New Delhi and Post

KJ SOMAIYA COLLEGE OF ARTS & COMMERCE 21

(C) ON BASIS OF OWNERSHIP

KJ SOMAIYA COLLEGE OF ARTS & COMMERCE 22

The government hospitals are owned, managed and

(D) ON BASIS OF SIZE

KJ SOMAIYA COLLEGE OF ARTS & COMMERCE 23

The tehsil hospitals generally have 50 beds that can

MARKETING MIX FOR HOSPITAL

KJ SOMAIYA COLLEGE OF ARTS & COMMERCE 25

Marketing management helps an organization in

Thought hospital is a nonprofit making organization

The designing of the suitable marketing mix thus

KJ SOMAIYA COLLEGE OF ARTS & COMMERCE 26

ii) OUT-PATIENT SERVICES:

KJ SOMAIYA COLLEGE OF ARTS & COMMERCE 27

area and OPD. The OPD should be connected with

iii) IN-PATIENT SERVICES:

iv) INTENSIVE CARE UNIT:

KJ SOMAIYA COLLEGE OF ARTS & COMMERCE 28

patient is given proper medical and without a

Healthcare & Hospital Management

Healthcare & Hospital Management