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SERVICE SECTOR ANDSERVICE SECTOR AND

HEALTH CARE SECTORHEALTH CARE SECTOR

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BEFORE INDEPENDENCEBEFORE INDEPENDENCE

HEALTHCARE HAS BEEN BASED ON VOLUNTARY WORK

MEDICINAL PROPERTIES OF PLANT AND HERBS WAS PASSED FROM ONE

GENERATION TO ANOTHER

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AFTER INDEPENDENCEAFTER INDEPENDENCE

GOVERNMENT OF INDIA LAID DOWN A STRESS ON PRIMARY HEALTH CARE.

GOVERNMENT INITIATIVE WAS NOT ENOUGH TO MEET THE DEMAND.

ALTERNATE SOURCES OF FINANCE WERE CRITICAL FOR SUSTAINABILITY OF THEHEALTH SECTOR.

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ENTRY OF PRIVATE SECTORENTRY OF PRIVATE SECTOR

GOVERNMENT ON ITS OWN WOULD NOT BE ABLE TO PROVIDE MORE FACILITIES

FOR HEALTH CARE.

GOVERNMENT ALLOWED THE ENTRY OF PRIVATE SECTOR TO REDUCE THE GAP

BETWEEN THE SUPPLY AND DEMAND FOR HEALTH CARE.

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AND NOW

ONE OF THE LARGEST AND FAST GROWING SERVICE SECTOR.

REVENUES ACCOUNTS TO 5.2% GDP

EMPLOYS OVER 4 MILLON PEOPLE

BY 2012 REVENUE CAN REACH 6.5 TO 7.2% OF GDP

INDIA IS THE MOST PREFERED DISTINATION FOR HEALTH CARE AMONG THE

DEVELOPING COUNTRIES

Twenty eight for the destruction on the other side of that

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PRODUCTPRODUCT

Types of services

Line services

Supportive services

Auxiliary services

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ProductProduct

Line services:

1. Emergency services

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ProductProduct

Supportive services:1. Official laundry

2. Hospital medication

3. Blood bank

4. Pathology

5. Radiology

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ProductProduct

Auxiliary services:1. Temple & mediitation

2. 24 hr chemist

3. Security arrangement

4. SEWA

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PricePrice

Differential pricing strategy

Externally Internally

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PricePrice

Innovative pricing strategy:

Day care procedure

Delivering value

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PricePrice

Delivering value

Traditional approach

Modern approach

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PromotionPromotion

Personal promotion i.e. word of mouth

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PromotionPromotion

Impersonal

promotion:1. Press release

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PromotionPromotion

3. In-film placement

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PromotionPromotion

4. Check-ups through

campaign

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PeoplePeople

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The objective of providing quality service to patients can beThe objective of providing quality service to patients can be

achieved by:achieved by:

Motivating employees to be efficient, dedicated and loyal

to the organization.

Providing regular on-the-job training of employees to

ensure continuous improvement in health care

Utilizing services of professionally competent medical

consultants.

Use of the latest technology.

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ProcessProcess

Two different type of process for:

Outpatient.

Inpatient

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OutpatientOutpatient

Meeting doctor at

appointed time

Simple medication

Diagnosis

Treatment.

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Inpatient.Inpatient.

The intensive consumption

phase

Registration.

The arrival of patient.

Joining phase

Diagnosis.

Information about future

action

Treatment.

Detachment phaseDischarge of patient

&

payment

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Common WardCommon Ward

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Emergency RoomEmergency Room

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Health Care in India

India has 48 doctors per 100,000 persons

which is fewer than in developed nations

Wide urban-rural gap in the availability of

medical services: Inequity

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Health Care in India.

Poor facilities even in large Government

institutions compared to corporate hospitals

(Lack of funds, poor management, political

and bureaucratic interference, lack of

leadership in medical community)

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Health care in India

Prevention, and early diagnosis and

treatment, if feasible, are the most cost-

effective strategies for most diseases

Promoting healthy life style from early life is

a no cost intervention which needs to be

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Key players in Health care segment

Appolo Hospitals.

Group Healthcare.

Fortish Healthcare. Arvind Eye Hospital.

Max Hospitals.

Manipal Group ofHospitals.

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SWOT ANALYSISSWOT ANALYSIS

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STRENGTHSSTRENGTHS

Low cost of production

Specialization

Infrastructure and Efficient technologies

Large pool of skilled doctors

Low pricing in public hospitals

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WEAKNESSWEAKNESS

Highly fragmented leading to Price competition

The Indian pharmacy companies are marred by the price

regulation by NPPA

Competition for small healthcare centers

Cost of treatment is not affordable

Imitated Drugs

Rural Healthcare A cause of concern

Low share of India in World Pharmaceutical Production (1.2%

of world production but having 16.1% of world's population).

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OPPORTUNITIESOPPORTUNITIES

Largely untapped market.

Switching over from process patent to product

patent.

Growing incomes and Growing attention for

health. Global outsourcing hub for pharmaceutical

products.

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THREATSTHREATS

Containment of rising health-care cost

Threats from other low cost countries like China

and Israel exist.

The short-term threat for the pharmacy industry is

the uncertainty regarding the implementation of

VAT.

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THANK YOUTHANK YOU