Marketing

Cardiac Hospital Case

An analysis based on Marketing Mix

Company background
Indian healthcare spending is about 4.1% of its GDP. The Indian healthcare industry is
worth approximately USD 54 billion, and has been growing at a Compound Annual
Growth Rate (CAGR) of 12% in the period between 2001 and 2009. In India, it is
estimated that Cardiovascular Diseases (CVD) are among the top three contributors to
the countrys total disease cases (i.e. about 10%). These situations have created the
need for an innovative approach towards this health concern
Setting up a Cardiac Hospital, that facilitates best of the amenities, has potential to reach
majority section of society and in a cost efficient way needs optimization of the core
processes, reduction in costs of hospital operation and associated tolls & machineries.
Apart from the facilities, a revenge model targeting increase in reach especially
accommodating low-middle income groups is a prime challenge. The model needs to be
sustainable, optimized and also scalable.

Marketing Mix Analysis

Product
1) Low Cost Cardio Vascular Surgeries:
Attracting Domestic and International Customers by conducting low cost Cardio
Vascular surgeries would generate good revenues if no of surgeries per day can be
increased as of the global average.
2) Consultation to Cardio Vascular Ailments and Over all Heart Health
Special Cardio Vascular Consultancy via both Online and Offline portals and centre
to accumulate potential patients and relationship with patients, thus adding more
revenue.
3) Recovery Therapy Programs
Speciality Recovery therapy programs to aid the patients who have already been
operated in or exercise Programs outside hospital.
4) Special Cardiac Insurance Policies
Insurance Policies aimed at facilitating the patients from a common fund raised by
a minimalistic periodic funding by enrolled patients/people.
5) Discounted Operation for Under Privileged:
Hospital Trust based programs to discount operations for under privileged patients.
6) Remote Location Constancy hubs.
Opening up centres / back community centres that can facilitate people from
remote location for consultancy and registering illnesses via online / offline modes.

Price
Since Substantial reduction in price is a necessary condition to realise the hospital
model, unconventional approach towards making heart care affordable.is a must,
It is also required to adopted the principle of economies of scale (i.e. delivering
cost advantages through expansion, resulting in a lower per unit cost for lowering
healthcare costs and increasing accessibility.
The hospital can be devised to have a hybrid pricing model. Rather than a average
regular cost of Rs 3,00,000 - Rs700000 a surgery, the hospital can offer 1/3 rd of the
total cost by introducing semiprivate and private rooms for those who want and
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can afford better personal amenities, while the medical facilities offered would be
the same for every patient. These upgraded rooms, which would comprise around
20% of the total number of rooms available at the hospital, and can be prices on
the higher note than the normal rooms.
Similarly, for other products the pricing needs to be very competitive as of the
market, in order to the charge for consultancy can be kept free for under
privileged and can be in the range of 2000 5000 for income levels around 12
lacs.

Place
Location of Central operating hospital to be near urban location for ease of
accessibility of equipments, medical supplies, patient conveyance, not necessarily
in a busy location. The location should not be causing mental disturbances to aid
recovery process and also let people know the kind of attention the hospital takes.
For accessing the rural and remote location, tie ups can be made with local
community centres, post offices and dispensaries to conduct surveys, local
preliminary consultancy and also collect and send patient symptoms.
Online availability of consultation opens up new grounds for more patients and
also screens out services required for outpatients at separate centre to be
established away from main operation centre.

Promotion
Tie ups with Government scheme to promote reach to remote, rural population
and also cater to under privileged masses.
Advertisements mentioning various insurance and Hospital Trust schemes over
Internet, Newspapers, television and radio to attract lower income groups and
make relationships with new segment of patients.
Personnel Communications with leading suppliers of critical hospital equipments
to negotiate prices.
Information centres in the community centres regarding facilities available t the
hospitals.
Attracting International Patients with lucrative costs of surgery via internet and
external advertising.

Conclusions
It is quite evident that to facilitate such an ambitious model, apart from process
optimization and cost effectiveness, adequate marketing needs to be done, so as
to fulfil the target to attract the segment of patients who belong to the below 12
lakhs income group and under privileged. The hospital facilities can be made
attractive by aggressive campaigning to promote a case of welfare and monetary
relief on medical procedures.

References
http://circ.ahajournals.org/content/126/11_suppl_1/S145
http://knowledge.wharton.upenn.edu/article/narayana-hrudayalaya-a-model-foraccessible-affordable-health-

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Marketing
care/http://eujournal.org/files/journals/1/articles/4289/submission/original/4289-12409-1SM.pdf

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