I
THE UNSUCCESSFUL FACTORS TO HAREM PRIVATE HOSPITAL AND
SUCCESSFUL FACTORS TO FARUK MEDICAL CITY
Submitted by: Goran Fathulla Qadir Supervised by: Mark DeWeaver
A thesis submitted in partial fulfillment
of the requirements of the Executive Masters in Business Administration
at the American University of Iraq, Sulaimani
Cohort 11, April 2018
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Certificate of Completion
It is hereby recommended that the thesis submitted by Goran Fathullah Qader titled “The
Unsuccessful Factors To Harem Private Hospital And Successful Factors To Faruk
Medical City” has been accepted in the partial fulfillment of the requirements for the degree of
Executive Master of Business Administration.
____________________
Mark DeWeaver
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Abstract
Health care service has been going through a deficit to deliver proper care services to the
patients in Kurdistan region, therefore, to cover this gap, different private hospitals have emerged.
This paper tries to explain the changes in the patients’ perspective between private hospitals. The
aim of the research is to clarify the success and unsuccessful factors between two private hospitals
in Sulaymani. Further, the paper shed light what has steered the wheel towards better success and
outcomes. In the research it is well-explained, there are some various factors that drive the power
of success and vice versa. In the research, related success factors that drive customers assumption
what to choose between the two private hospitals. For instance, investing in human capital,
digitizing the health system on modern base all together have an impact on the patient’s perspective
and choice. On the other hand, both private hospitals can work in the region, but both cannot match
the patients wants equally. Since the delivery of the services and having almost all departments in
one of them are much better than the other one, thus one of them remains stronger at the level of
competitiveness. The management team and financial support are two major factors that related to
the business performance in the region. each of them the main job is delivering the health care but
in a different way and different quality.
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Declaration Statement
I declare that no portion of the work referred to in this thesis, as defined by this course, has been
submitted in support of an application for another degree or qualification of this or any other
university or institute of learning. Further, all of the work in this thesis is entirely my own, unless
referenced in the text as a specific source and included in the bibliography/references.
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© 2018
No part of this thesis/case study may be reproduced, stored in, or introduced into a retrieval system,
or transmitted in any form or by any means (electronic, mechanical, photocopying, recording, or
otherwise) without prior permission of the researcher or relevant department of AUI-S.
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To my great prof. Mark deweaver who he had continuously supported though the completion of
this thesis. A special thanks to my wife who stood beside me with a great support.
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Acknowledgement
Firstly, I would like to express my sincere gratitude to my advisor Prof. Mark DeWeaver for the
continuous support of my MBA study and related research, for his patience, motivation, and
immense knowledge. His guidance helped me in all the time. I am so thankful for his contribution,
guidance, personal critics and friendly advice during the writing of the dissertation. I am sincerely
grateful to my close friend Mr. Sardash and Haval for distributing their views on some issues
related to the writing.
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Contents
Introduction and thesis paragraph……………………..…………………………………………..1
The Background for the Unsuccessful Case ................................................................................... 1
Harem Private Hospital ................................................................................................................... 1
Internal Factor: ................................................................................................................................ 2
Managerial Skill .......................................................................................................................... 3
Human Capital in Harem Private Hospital .................................................................................. 4
Physical Resources and Technology Capacity on Business........................................................ 5
Harem Hospital Performing Now ................................................................................................... 5
Effect of Information Technology on Patient Outcome ................................................................. 6
Internal Employees’ Strength ......................................................................................................... 7
The Background for the Successful Case ....................................................................................... 7
Faruk Medical City ......................................................................................................................... 7
Internal Factors ............................................................................................................................... 8
Hospital Internal Structure .......................................................................................................... 8
Development and Management ................................................................................................... 9
External Factors ............................................................................................................................ 10
Faruk Medical City and Reginal Marketing .............................................................................. 10
Investing in Foreigner Doctors in Faruk medical City .............................................................. 11
Faruk Medical City Marketing Position .................................................................................... 11
Heterogeneity Medical Service in Faruk Medical City ............................................................. 12
Better Healing Comes from Better Design and Plan ................................................................. 13
Key Factors That Caused the Unsuccessful Case ......................................................................... 14
Private Harem Hospital ................................................................................................................. 14
Group Business Problem in Harem Hospital ................................................................................ 14
Internal factors .............................................................................................................................. 15
Staffing and Skill at Harem Hospital ........................................................................................ 15
Improper Use of Technology in Harem Hospital ...................................................................... 15
Improper Marketing Management in Harem Hospital .............................................................. 16
Lack of Whole Departments and Service in Harem Hospital ................................................... 17
Limit the Business in Few Departments ................................................................................... 18
Facility and Salary in Harem Hospital ...................................................................................... 19
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Schedule and Working Hours in Harem Hospital ..................................................................... 20
Key Factors That Caused the Successful Case to Meet or Exceed Expectations ......................... 20
Faruk Medical City ....................................................................................................................... 20
Internal Strengths .......................................................................................................................... 20
Structural Strategy ..................................................................................................................... 20
Right and Modern Equipment and Building Design ................................................................. 21
Different Departments in The Faruk Medical City ................................................................... 22
Trust Is Matter in Other Hospitals............................................................................................. 23
External Factors ............................................................................................................................ 23
Customers Expectation and Hospital Reputation ...................................................................... 24
Weak Public Healthcare in the Region ..................................................................................... 24
Other Factors ................................................................................................................................. 25
1
Introduction
in developing countries and low-income health care system dominated by the public
sector. Understanding their plan and property plays an important role to advance and reform in
their plan. But it is complex to understand and to know how to develop their strategy. In these
countries, the public health often faces challenges and crisis due to the improper plan of
budgeting. With growing population and industries, demand increases for the health care
services. health care system depends on different factors and scenario. In the absence of good
health care system in the region, there is an opportunity for the entrepreneurs to implement their
plan investing in the private health sector.
In the recent years Harem and Faruk medical city, two private hospitals, have come to
exist both in Sulaymani. Both works in a different way but they both deliver medical care to the
patients. each hospital run the business with their mission and goals. They both are profit making
hospital. Since they both are private in the region people are visiting them for some special case.
The question always comes to mind regarding the medical care delivery and the quality.
As it is well explained in the research in the below paragraphs, it turned out Faruk
medical hospital management and service provide better health care system and this has made
the hospital play a successful role in the region. people looking for better health care system,
different aspects hold the importance of health delivery care to the patients. however, Faruk and
Harem medical hospital aims to deliver best medical services with utilizing different features, at
the same time Faruk city has way up in attracting the patients in the region because of advanced
technology, investing in human capita, different department, great team management, and big
financial support. On the other hand, Harem private hospital has not invested much in human
capital and the hospital needs to open new branch such as an emergency department. In addition,
there should be departmentalizing among the hospital within a clear plan and set up a qualified
person for each department like finance, administration, and marketing.
This research will shed light on two private hospitals in Kurdistan region and below
sections will display each separately. The first section is about why Harem hospital cannot
compete with Faruk medical hospital, the major issue with that, the hospital has not been able to
invest in human capital, technology, providing whole medical service with different departments.
Further, then there is some key role that playing in dominating the market in Faruk medical city
but not in Harem private hospital.
The Background for the Unsuccessful Case
Harem Private Hospital
Harem private hospital has been established in 2010 by doctor Firaz and some other doctors
together. This hospital was a good hospital at the time when it was established inside the city. It
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had about 32 patient’s rooms and eight for surgery that It could provide many services at the
beginning of operating and people put trust on in at the time. Their major focus was on surgery,
this number changed from day to day. It is estimated to see about 12-15 surgery per a day. when
the hospital was opened in the city, there were not such developed private hospital at the time.
people were importantly looking at the hospital and expecting to have a great chance to be more
developed in the future. The hospital had many departments like another hospital in the beginning
bit not all. They were famous for gynecology because their major work was working on women
surgery for babe birth. They had small bed rooms for patients and working on many surgical and
some small clinics inside the hospital. the room needs more cleaning service and space as well.
time passing and the development of the hospital was not going according to the patient’s
expectation and needs.
With growing population, people medical needs and wants were growing. When a hospital
cannot afford the customer’s need and want then people turn their back away from the hospital
and looking for better medical service and treatment instead. They didn’t extend the medical
service in the hospital such as other surgery or they do not have an emergency department which
is important. Different factors pushed the performance of the hospital that people didn’t go to take
their medical services (Lewis, J. (1979). Customers always looking for the best choice regarding
the quality and time as well. in the gap between the people’s need and want, there is always an
opportunity for another party to start up new business. However, the economic crisis triggered at
the beginning of 2014, but this was also another chance to start up a new business or to let other
rivals to appear in the market. If a firm wants to stay sustainable, there should be modifying
according to the markets’ needs and wants otherwise will go down and cannot compete to survive.
In the following paragraphs, the unsuccessful factors for the business will be displayed.
Internal Factor:
Internal factors are an important portion of the business success. A price isn’t the only matter to
succeed the business. When the customer wants what you cannot properly deliver to them then the
business loses the chance to grow, expand, and increasing the product even you need to close the
door of the business (Edmunds1,2010). Human capital and business growth together need to
1 http://www.forbes.com
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characterize two sides of the same coin. It is better to invest in human capital to grow the business
rather than sending too much money on some other service such including different types of
surgery. (Llopis2, 2011). In harem hospital, human capitals are local doctors and not much has
been done to develop this important portion to succeed the hospital properly. Customers can gain
in public hospital what is delivered in the Harem hospital, therefore, there isn’t different to
distinguish the Harem among public hospitals. Nowadays, people understand that what they can
gain at Harem hospital they can gain at a public hospital for lower cost. Because there are some
critical cases that Harem hospital cannot afford it.
Managerial Skill
Harem hospital is a business that owned not only by one individual, but it is ownership by a group
of physicians in the city. The board of the hospital is not owned by a single person. The
management of the business is multi-faces scene. It is a rather more central point in terms of
making decision management of the business is an important part of succeeding the business. It
can run the business properly in terms of budgets, planning and implement. Mangers should be
trained based on the development of the business and requirements. In Harem medical hospital
there are a group of managers that direct the tasks and responsibilities and they are all doing
physicians job as well. it is important to identify the tasks in the business to succeed the business.
When a person is assigned to more than one tasks or responsibilities, it turns out to have the work
corrupted. On another hand, Managers central role is a responsibility to make a decision. For
instance, when something new comes in they should be proactive to respond wither either the
change is external or internal(Cross,2018). To make sure that your business workplace is working
softly and efficiently you need to have a good management skilled people in the business. Those
managers are well prepared that they were trained. In contrast, weak management can cause the
ruin of the business(McQuerrey). Harem Hospital managers are a number of people that have not
good skill in management and planning. Therefore, poor management in the hospital causes the
business not to perform well. Good mangers can raise the return on the investment because they
can manage better the way using cost benefit analysis. The manger should be well trained but in
the Harem hospital, most of the managers are doctors and without the proper skill of management.
In Harem hospital managers are not quite competent in terms of management skill and
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responsibilities and they are all from the local region and not international or from abroad. This
has put a questionable mark on the business the way it is operating. I think the management skill
in this needs to revise to identify the weak and the strength points of that. Recruiting people with
high skill managerial skill provide the business with a great outcome and can give a good power
to attract the patients or customers attention.
Human Capital in Harem Private Hospital
Human capital is an important internal factor of the firm. This factor has a big role in
succeeding the firm. Investing in human capital means bringing the benefit of the business in the
long run. Harem Hospital investment in human capital focuses on the local market and local
physicians. This has put a limit to develop the business because people demands for medical
services has increased due to the spread of diseases. The demand has increased due to bad medical
diagnosis in the region and people are looking for better medical treatment. For instance, some
patients are leaving the region to receive better treatment to the neighboring countries or to Europe.
When a local hospital cannot afford the service, they look for another alternative. (Mukher, 2010).
Due to the importance and the valid of the human capital, different courses are provided to direct
what type of human resource can be functional according to the business requirement. It is
recommended that to have a successful business there should be a plan to choose a right manager
for the internal business. Thus, the return on the business will increase because people are looking
for quality of the services. It is thought that; the hospital needs some more department with skilled
or international staff to be able to stand on its feed and to compete its rivals. For instance, it is
strange when a hospital has not an emergency department, and their only major focus only on
gynecology or newly born surgery.
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Physical Resources and Technology Capacity on Business
physical resources are another crucial factor that determines a great part of the business
successfulness. Plant and equipment and technology can increase the strength of the business and
gives competitive strength to the business. This will increase each unit capacity and productivity
of the business and this can also enhance the capacity of the workers. In Harem hospital which is
considered as good quality medical service, they do not have all medical equipment. For
instance, they do not have enough diagnosing equipment they do not have
Electroencephalography, Motorized Thrombectomy System, C-Arm Scan for patients and
enough However, this hospital has been working for almost a decade, at the same time when a
medical critical case admits into the Harem hospital they directly deliver the patients to the
public hospitals inside Sulaymani. This has a negative impact on the business and customers
attraction. First, this is increases wasting time and postpones the rapid treatment while the
patients indeed may need on time. secondly, it increases the likelihood of fatal consequence,
because there are some cases need to be quickly treated. To develop the business in Harem
hospital, there should be technology and resource in the hospital according to the patients’ needs
and wants. Treating the whole cases inside the hospital is an outstanding measurement to
succeed the business and to raise the quality of the business as well. the Hospital needs more
medical equipment and more advanced human capital. At the same time opening new department
will help them to work better.
Harem Hospital Performing Now
Hospital offering a complex service to the patients at a high standard that meets the patients’
expectations. The health care should be alliance and answerable to the patients wants and needs.
In another word, the hospital should be able to build a good relationship between the services and
the people wants otherwise any negligible way will distract the plan. For instance, opening whole
departments in the hospital build value chain to the hospital, and this will increase the hospital
reliability in terms of service. Harem hospital has been working with the same mode of the working
as since it was established. In the hospital, there are not the whole medical services and
interrelations with one another to attract the plan and to go on a right path. Within the possibility
of appearing any other rivals in the same business, Harem should have a backup plan to seek to
protect themselves from any competitors. Since they have not developed their project and plan
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while people are growing in the region, they have not gone further in terms of increasing their
customers. The hospital could have worked better way and met the most patients needs and want
since it has been established early. To succeed the private hospital, the hospital should have the
plan to have all departments to cover to provide all medical service to the patients. In harem
hospital, there are not all departments to be able to meet the whole needs and wants as it is
mentioned before, they do not have brain, nerve system and heart department. Therefore, when
they could not afford the service to the people or patients, then people are seeking a better
alternative. The hospital performance isn’t coping with the customer’s needs. For instance, they
do not have emergency department while this is the most important and basic part of the hospital.
The emergency department is an important department that they should have it and focus on it.
Nowadays, internationally there are so many conferences to develop the emergency department in
the hospitals (Dines, 1990). When there is not an emergency department, it is uneasy to provide
timely and appropriate medical care. There slowdown of Harem hospital is multifaced and in the
following paragraph, there will be more detail about it.
Effect of Information Technology on Patient Outcome
Internal business factors are a valid part of the business that leads to the success of the business.
IT and technology together bring a better chance of success to the business. For instance, they do
not have a portal to record the patients’ history. This will help them to diagnose better and not
spend too much cost. Researches have shown that. Harem hospital database applies patients
profiling system which is an old system that was used ago. When the technology came in, this has
rapidly increased the facility of the business and saved lots time to the business. This will reduce
the cost of the inventory that the hospital may store many files for each person (Lindblad, 2018).
In addition, the chance of making mistakes will more likely to happen. Reports have shown that
database can help small and large business owners to organize and record their business in terms
of inventory and employees. In their inventory, besides their expired materials, they keep a huge
number of patients file. In Harem hospital, the database is an old and old fashion system that
increases the cost and the difficulty to keep the data especially patients record to track. In terms of
inventory, the electronic database can tell the selling of the products and how much is left in the
warehouse. The electronical database can help to analyze the resources and understanding the
future of the need of the business. It is recommended that, applying database should be used to
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facilitate the business run. I think to avoid the complexity of the business and potential mistake by
the Harem hospital, it is better for them to use an electronic database instead of profiling. Having
a portal is like saving them from inventory and profile is patients physical documents that take too
much space and time.
Internal Employees’ Strength
Different actors in the business have a different role in the business. They all corporate
with one another and complete one another. Mastering some of the business alone may not be able
to work well according to what you may expect. And it is challenging when a local business faces
a challenge by coming new rivals into the market without a concrete plan. Harem hospital has the
local physicians that run the management of the business and hand on the performing surgeries as
well. internal factors can be in control, unlike external factors. It is very valid to recognize the
threat outside the business and should be taken into consideration. When a new rival came in with
a stronger background of medication and international employees or staff, the people
psychological assonance changes to the new business. Therefore, the local Harem hospital must
work on new change and well-established employees inside the business. Because, researches have
shown that, the value of the employees increases the value of the business and the outcome of the
business. It is proved that business with motivated employees is performing better than the
business with unmotivated employees. There are many internal factors of the business that
considered very important, there are financial, physical resources, and human resources. When
their factors are in control, then the business is in a good shape (Abukhames,2015).
The Background for the Successful Case
Faruk Medical City
Faruk medical city was established in 2014 by Faruk Holding Group supervised by a
Turkish company name ACIBADEM CLASS HEALTHCAR SERIVCES supervised and funded
by Mr, Faruk. During that time, the economic crisis was initiative started. Thinking of such a
great hospital with lots of fixed and other various costs were difficult to put in such a big
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business. Imagining of the success of the hospital was way far from the reality and sustainability
in the market while there are some other private hospitals working with lower prices in the city.
Those private hospitals came into the market before this private one.
They had the chance to monopolize the situation and play an important role to keep their
rivals out of the business. Business strategy was an important backup to success the Faruk
medical hospital. Faruk way of working strategy was a constructive approach that it could cover
the whole global business strategy to succeed the scope of the business ( Peteraf, Thompson,
Gamble, Stickland 2012, P. 385). A business can be successful if it has great resources and
capability aligned with execution process that enable the firms’ successfulness. Since Faruk
group has lots of other business in the region with a great economical support, therefore, that
could trigger the business manager to deploy the resources and capacity in form of value-creating
to support the business. Almost all the Faruk projects in the city are inter-related. Within having
a capacity which represents resource availability to get the job done and bring the plan on time
with the money. There are some companies or organizations that don’t consider their capacity to
enable the project with the resources. However, it was the beginning of the economic crisis,
wisely, Faruk medical started well because the managers well-focused on the risk assessment.
The manager of the executing project well-understood that the risk isn’t related to the technology
or process but is rather related to the resources (Khan, 2017, P.1). There are human capital
resources and also financial help among the business inclusing Faruk care city. Faruk medical
city has rationalized in the different types of businesses and this form of doing business which is
all eggs are not in the same basket has given strength to be reliable in the market. Add to that,
their brands and products are easily received to the hand of the final customer due to the previous
work and project in the region such as Asia Cell and Qaiwan Group. For instance, they provide
emergency provision by using a helicopter to deliver the quickest medical service to the patients.
Internal Factors
Hospital Internal Structure
In today’s internal hospital structure complexity is considered as a big challenge for the
hospital. Faruk medical city’s culture represents the local culture by a combination of both local
and doctors from abroad. Faruk medical city has adapted local culture to reflect the local social
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culture in the region and way far from any political and social background. This has a positive
effect in attracting patients to the hospital. the strategy of the hospital is quite neutral rather than
having a political or religious background (Lentz, 1957). On the other hand, the medical and
biological service in the hospital prosper and has begun to offer the hope of the cure to the patients.
For instance, the rich people especially have patronized Faruk medical hospital to get treated.
Faruk Medical City has shaped the natural culture in the region. whoever needs the medical service
in there, the will work based on the mission of the business rather than any under any other political
party’s involvement or ownership. Besides, the complexity of the hospital, at the same time it is
considered as an extreme sample of the hospital. Another important internal factor that strengthens
the hospital is choosing right people to work in the hospital. for instance, high quality physicians,
staff, nurse, and quality have improved the quality of the hospital. recruiting right people especially
right nurse is linked to the absolute esteem for the empowerment of nurse (Meyer, Kutyla, Stepnick,
Rybowski 2014). Another factor that puts a positive effect on the hospital is having many
developed tools inside the hospital such as digital portal and developed medical technology like,
six open-heart intensive care beds, and six coronary care beds that equipped with the latest
advanced medical technology (Faruk Medical City).
Development and Management
Business nature and environment are as a complex structure to the point of human
connectivity. Researches have shown the way an organization comprehends how the organization
is structured and the inner decision making of the organization depends on the nature of internal
activities. Consequently, both the structure of the business or the nature of the business
environment comprehends what is important, straightly affects what the individuals feature with
the organization is (Wicks, Keevil, Parmar 2012). The management skill in Faruk medical city is
well-managed by healthcare group from Turkish (ACIBADEM CLASS HEALTHCAR
SERIVCES) with vast experience in the private healthcare services felids. They have installed new
standard for Faruk Medical City. Faruk has a plan to take upon itself to lead the country into a new
era of healthcare. The Turkish healthcare that established Faruk medical city is famous for lots of
activities across the country such as Amsterdam. This group is internationally well recognized to
the world in terms of healthcare and management. Fortunately, they run the Faruk medical city
inside Sulaymani. This has given a great deal of managerial skill in the hospital. Based on the
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Turkish vision, Faruk medical city will broaden its business in the long run and change the medical
service to a new era of healthcare services. for instance, they have currently lunched a new branch
which is freezing human sperms and eggs that could be used in the future.
External Factors
Faruk Medical City and Reginal Marketing
Marketing is an important element to succeed a business and to stay in the market. There
are some factors behind running the success of this to enable the sustainability of the business in
the market. It is important to be able to bring all the different clusters in the region together to
understand the differences and the similarity among them. Since Faruk medical city uses a different
style of marketing, thus it could have put an effect on the customers to draw their attention and to
fill out the medical gap they have. Throughout marketing Faruk medical city has been able to hit
the point. Marketing is a process that recognizes needs and wants of people and then fulfilling. in
the region, Faruk medical city has triggered the chance to develop its marketing strategy. Faruk
group has become a famous business in the region and almost everybody understands the rolls of
the group in the region. the scene behind the successfulness of them is a strong marketing and
using a different channel to communicate their products.
In the hospital project marketing, they are using human resource marketing. Research
shows that the human resource can deliver two third of the information to the customers
(Stanciulscu, G. (2009). a different strategy is used in Faruk medical city regarding the introducing
the institutes and its main job and tasks such as a seminar, using a billboard, and TV channels and
social media as well. Nowadays, this hospital has an outstanding recognition in terms of medical
services and international standards. Besides, the business will broadly focus on the global market
not only the local market. Mostly all patients are from Kurdistan and other cities from Kurdistan.
For instance, most of the political representative and rich people are visiting the hospital. The
objective of the market will be focusing on the providing medical equipment throughout the market
strategy to fill out the medical deficit that the Kurdistan region lacks Faruk Holding). In addition,
the business well installed in the region and everyone in other cities of the region familiars with
the Faruk Medical City. Ultimately, having strong economic strength, and using the effective
11
strategy of the marketing altogether sustained the business in the market compared to the other
business that performing poorly.
Investing in Foreigner Doctors in Faruk medical City
Having a successful business requires a great and comparative effect on the sustainably of
the business. Further, it is also an important element regarding the reputation of the business. A
part form another private hospital, Faruk medical city apply a different strategy regarding the
quality and the reputation standards. Having international medical practitioner’s key role to
succeed the project in the region. Faruk medical city applies modern strategy and implementation.
There is an extensive method to realize the nature of developing business. To have a successful
business, there should be a successful human capital. In the Faruk medical city, wise steps have
taken towards investing in international doctors that have triggered the successfulness of the
business. Mostly the doctors and form Mosul, turkey, US and local doctors as well. Different
experts in the different field in the medical city has been provided to welcome the patients at a
very high and standardized level. Researches have shown that intellectual capital has a key role
in succeeding business this is on one hand (Subramaniam, M., & Youndt, M. (2005).
On the other hand, this is also giving a valid point of patients live and will contribute a
good health care to the whole population in the region. This proves that, how important to
investing in right human capital to enable the greater probability of success to the business.
Therefore, Faruk strategy in investing doctors have given a greater chance to the successfulness of
the business and the patient's satisfaction. And the business widely focusing on investing human
capital because human capital increases value and reputation to the hospital. Faruk invested in
foreign physicians to raise the business value and to attract the customer's attention (Leddy, 2016).
Thus, the area of controlling the market is easy to access the business. Reputation is an important
element to the business in developing countries. Shortly, different factors have a valid role in
succeeding business including human capital and reputation.
Faruk Medical City Marketing Position
To prosper a business strategy there should be a great marketing in the area that can cover
the at least most of the populations. In addition to that, it depends on the size of the business and
the capacity of the business are a couple of important keys. In Faruk medical city, the number of
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the beds. In Faruk medical city, the number of the beds, which is 210 beds and this have given the
power to strengthen the frim and to easily compete with the competitors in the area. further,
covering the whole medical departments in the building has given a strong competitive power to
beat the market as well. This hospital with a crucial market position and strategy is more likely to
have a greater competitive advantage to be able to slow down the competitors. Thus, Faruk medical
hospital is expected to have much more customers in the future. Another advantage regarding the
market position is giving power to the business that provides the business with bargaining power
with physicians and its suppliers. It will lead also the pricing adjustment. Besides, the marketing
should be able to give the power to the business to increase the customer's confidence. Since the
people in the region are suffering from lack of medical services, therefore, they are looking to
access to better medical service. The valid part of the business to this business is starting during a
critical time of medical shortage of the reginal healthcare. Based on the Dr. Dlawer previous high
education minister as he speaks of the bad condition of health improvement in the region, he
stresses that “Kurdistan region should improve population health and adapt policy based on the
evidence (Stefano, 2014).
When a public healthcare cannot sufficiently afford the service to the population it is right
to think of starting a new business. During the crisis, smart entrepreneurs are turning the crisis to
opportunity. Because of opportunities spring form financial crisis (Afiouni, 2012). At the time of
the economic crisis, when almost all service severely went down, the theory of opening Faruk
medical city was established then implemented. This project has put an effect on the healthcare
system in terms of better quality and service compare to others. However, there are some other
private healthcare clinics in the region, at the same time they have not the whole service like Faruk
medical city has. Ultimately, establishing such a good quality hospital has given power to the
business and to the population at the same time. As it is said that, good health means good wealth.
Heterogeneity Medical Service in Faruk Medical City
In some private hospitals in the region, there is not enough medical service with the
international standard. Therefore, some other hospital like Faruk medical city takes the advantage
of the situation and develop the business. Faruk medical city benefits better from the competition
than other hospitals. Since the medical services are multifaceted of services and products that
involve a lot of types of patient-oriented activities. This needs huge budget and management
13
strategy to run especially in the long run to succeed the process. In Faruk medical city there is
almost every medical service and unite providing medical service to the patients. lack of proper
unite in the medical service cause lack of success and gaining customers. Standard of care and
privacy are highly important in Faruk medical city. In the center of the medical Faruk has made
up several other healthcare clinics and private sectors that including all the medical departments.
According to Faruk policy, the hospital has met international acceptance benchmarks for patient
safety and quality improvement. All departments in the medical city are running professionally
with advanced technology. For instance, there is a proper portal that recording patient’s
information and prescription. Within all the departments, the hospital policy and slogan are “we
are committed to the highest level of patient care and at the same time we recognize the importance
of relatives and friends for whom many facilities have also been provided”. Having all departments
in the city play a key role to understand the patient's issue or illness. This will give the chance to
understand all cases. For example, a hospital with all departments can take good care of
heterogenous people such as elder people and their medical pattern (Faruk Medical City,2018).
Over all, a hospital with all departments is performing and providing better medical service to the
different type of patients in terms of age and diseases.
Better Healing Comes from Better Design and Plan
The medical city has the best epitome of architectural quality. Faruk medical city lobbies
including antibacterial sterilization system which is not available in other hospitals in the region.
further, the patients can make an appointment with the doctors by phone call, this has given priority
to the hospital to attract the people throughout the marketing. In addition, patient’s expectation is
changing based on the hospital medical services and activities. This character that Faruk has
changes the patient’s expectation in terms of what a hospital should be. Reports show that this kind
of building quality has paved the way not only to satisfy the patients but also dropping costs and
improving results (Yamaguchi, 2015). Further, in their plan, they use a helicopter to transfer
patients in case of emergency. The building design is quite comfortable so that the patients and
their relatives can easily access various of the hospital. There is a Kurdistan hotel next to the
hospital running by Millennium Kurdistan group, it has been designed to deliver service to the
patient's relatives. This shows that a patient’s centric approach has been considered in all aspects
of architecture and design.
14
Key Factors That Caused the Unsuccessful Case
Private Harem Hospital
Group Business Problem in Harem Hospital
There have been lots of change that faced healthcare system across the globe, according to
the report showed that the changes that might have happened in other business or industry are not
more than the upheaval in current years than in the healthcare. Rapid changes need a rapid plan
and catch up to stay on own feet (Esteban, J., & Ray, D. (2001). Harem Hospital’s challenges are
a multi-faced issue and this is leading the sector to slow down in terms of performing and
competitive strategy. For instance, the hospital ownership is not holding by only one person it is
rather two people like a joint business. Some of them work for the owners while they have
governmental committeemen working in the public hospital or other private clinics. Medical joint
collection practices are business. In Harem private hospital, only local doctors working there and
providing medical service to the people in the city Harem hospital since it is a collective firm it is
more likely decentralized in terms of decision making. A firm with a decentralized structure does
not mean it’s advantage cover whole and brings profit (Olson, 1971). In the theory of joint business
work, the members of the group are participating according to the expected marginal cost and
benefit. According to public goods and theory of groups “problems with collective firm appears
when we consider externalities and public goods within groups”. It is proven that join business or
holding ownership of group business are not free of problems that affect the performance of the
firm (Miller, 2001). Firstly, it is difficult for the all partner to assure they have the same objective
in the future. For instance, member of the group may leave the business in future when there is a
better opportunity to start own business. In Harem Hospital, different partners are working while
they have a business interest outside the hospital. For instance, they work in the public-sector
health service as well or some of them run their own clinic. Secondly, the inadequate
communication between the partners regarding the different level and knowledge. Since not all the
owners of the firm at the same there may be a misunderstanding in among them (Miller, S. (2001)
Ultimately, a collective business can take advantage of being in a group rather than having lots of
problems. There should be an equal contribution and straight communication among the partners
to succeed the business. In Harem hospital, the problems can be fixed based if the points above
15
mentioned will be well addressed and communicated. There are several private hospitals in the
region mainly held by single ownership or collective ownership.
Internal factors
Staffing and Skill at Harem Hospital
Skill and staff are relatively as important as in any other business fields. For instance, in
the healthcare system, general administration skill plays important role in succeeding the business.
In Harem private hospital there is not clear departmentalization. The manager of the hospital run
both administration and finance department. The complexity of the hospital department needs
different skill. For instance, finance should have its own experts and manger to be able to spot the
errors that may happen in the calculation (Doyle, 2017). It is proved that; different type of position
need different skills. The administration needs leadership because it focuses on the development
and planning a facility management. Investing in this skill and capacity push the business towards
development. For instance, hiring advanced skilled candidate will have an impact on the business
and introduction of the business as well. Further importance of leadership commitment to the staff
and perseverance. One single manger cannot take whole responsibility successfully while the
Harem hospital practicing nowadays. In addition, leadership that needs in the administration is
encouraging the entire staff in the business towards better outcome (May, 2010). Shortly, like any
other business private hospital needs different types of skill and management and investing in
advanced or high skilled experts will bring more revenue and reputation to the business.
Improper Use of Technology in Harem Hospital
This part of the dissertation focuses on the advantage of information technology to firm
and the impact of developing the business. Nowadays, technology has revolutionized the firm and
made it quite straighthood’s in terms of competition and advantage over rivals in the environment.
Utilizing technology in healthcare system has expanded the business and accelerated the healthcare
system. IT has created new ways of performing activities and even organizing the healthcare.
Researches have shown that using IT in the business and especially in healthcare system increased
the capital over ten per cent of GDP (Mathur, A 2004). Above mentioned points are not clearly
seen in Harem performing activities. For instance, as it was well clarified in the previous
16
paragraphs, lack of a portal has challenged the hospital to take a standardized format of the
advanced hospital at international level. In the Harem hospital patient’s documents are traditionally
kept not saving the patients names or histories digitally which is helpful for future diagnosis
properly.
Technology. Business in the need of technology nowadays, and healthcare management is
business to business events. Since there is not a database or portal functioning Harem hospital
records regularly, then the probability of losing data and patients history which an important are
at risk of disappearing. Using technology especially IT in the business can secure the patient's
information and even it is helping the future diagnosing for the patients. IT gives the advantage to
the private hospital of Harem in terms of saving times and accurate diagnoses and medication.
Using technology in advance in the Harem hospital will strengthen the communication among the
departments and the business owners.
Improper Marketing Management in Harem Hospital
The importance of the marketing is how to design to provide the biggest value to the
business or organization. Marketing can be advertised throughout different media, channels or
online. In Harem private hospital, there is not a clear market strategy and proper design for the
marketing management in the hospital. It is uneasy to understand their service and what they offer
to the patients in the region. This is not difficult to uneducated but it is even uneasy to educated
people in the area. If someone wants so to understand the service and the branches of the hospital
there is not a clear way to reach. Marketing can give the power in terms of publicizing the service
across the cities and neighboring town. Besides, going the business famous at the heart of the
business, it is creating the link between the customers and the process within the business. Besides,
expanding and introducing the business the marketing is expected to progress knowledge and skills
to link better to the customers or to deliver the information to the customers (Moorman, Rust,
1999). Marketing has broadly affected the service industry. This has led to employed big number
people in service industry rather than other factories.
Besides, the marketing department is highly a constructive link between patients and the
service. Marketing of the medical hospital has become more complex, therefore, however it was
thought that the doctors could determine the patient to the specific hospital. This theory worked
17
for two or three decades ago, but nowadays, even using TV, Radio, billboard and printed
advertisement are not enough. Since people can access the information and knowledge online,
therefore, it is easier for them to use social medial and online advertisement (Berney, 2012). The
above-mentioned points were argued poorly seen in Harem Hospital in Sulaymani. It is better for
them to enhance their marketing management and strategy to enable the customer to understand
what they offer.
Lack of Whole Departments and Service in Harem Hospital
Hospital has many departments and staffed by the inclusive diversity of healthcare
professionals. There should be classified the wards properly and according to diseases. It is proved
hospital departments should be classified according to a scientific plan. In Kurdistan region, there
are hospitals that owned either by a group of people or held by a single ownership. Harem Hospital
which is run by a group of people and has been established years ago, they are working as a private
hospital, but they do not have all the medical departments which play valid key to succeed the
scope of the plan. Having emergency department in the hospital increases patients or customers
visit the hospital. The emergency department works twenty-four hours per a day that is why this
is an important department in the hospital to be available (Kellermann, A., & Haley, L. (2003).
When there is not an emergency department, it shows that there is not enough staff in the hospital.
for example, each department has its own staff and specialist to consult with the team that is
interested in the specialty. Another important department that counts to be very important in the
hospital is intensive unit care. The Harem hospital in this point has lost the supply chain strategy.
Intensive unit care is important to develop the hospital because there is always a direct relation
between the emergency department and intensive unit care. This shows that there is not enough
medical staff and nurse relative to these two departments. When there is not enough staff and
department then people turn to seek to a better choice.
On the other hand, the hospital major focus is on gynecology and obstetrics with some
other departments. There is also a strong relationship between gynecology and obstetrics with
neonatal born. The hospital inner relationship is not working well, therefore, it has lost ground in
terms of supply chain. Neonatal and gynecology have a direct relationship. Besides, the mother
and the babe should stay together while Harem private hospital refers their neonatal case to the
other hospitals around the city. Reposts have shown that thousands of families want to stay close
18
by their children after the birth. Statistic has shown that it is better to the child and the mother to
stay together (Mugford, M., Szczepura, A., Lodwick, A., & Stilwell, J. (1988). It is important to
have a good and comfortable meal or chicken for the family cost (Ford, 0016). Besides, the
improper lack of running the hospital like a successful business it is better to the Harem hospital
to open at least the neonatal and emergency department with accommodation, especially for the
family to stay with their babes. Another value chain that the hospital has lost on the ground is the
relationship between emergency and intensive unit care. Because both departments are unavailable
in the hospital. There are some opportunities the hospital can take advantage of the situation but
there is no serious step taken into consideration. Reports have shown that the newly born rate has
increasingly increased (Richardson, McCormick, P.162-167.1995). therefore, it is important to be
able to establish the neonatal department while there is gynecology. It is said that there is not
giving birth at home it is used to be.
Limit the Business in Few Departments
This part will focus on the healthcare delivery to the family and the reduction of the load
that patient-focused hospitals face off. Public hospitals are the major area of unease from different
corners in the world especially Mediterranean Region. Kurdistan a big problem due to lack of
proper medical health care system. Therefore, it is a chance for the private sector to invent in the
private sector in a better way, especially in family doctors. In the absence of medical service in
Kurdistan, there is an opportunity to advance own business. Nowadays, Harem hospital as the
passive sector has not been able to implement the family doctor’s system. Family doctor system is
taking care of the family’s individual and providing the fund by the family to the hospital.
Investing in developing such a service will rapidly introduce the business to the almost the
customers around besides the business sustainability. Because Kurdistan is coming up with a
shortage of medical services according to the report (Saeed, 2013).
Since the government is the major healthcare provider in the most Middle Eastern
countries, often, it is not sufficient to meet the population’s needs. Nowadays, Kurdistan region is
going through a tough time to be able to cover whole health service to the population. It is time to
establish family health program. Harem hospital could have taken the chance to develop the
departments and invest in better physician with better skill compare to local physician. For instance,
family doctor’s system can enhance the healthcare of the patients and financial status of the
19
business. There are so many fresh graduates from the college of medicine in the area, it Is time to
train them, invest in them and then the doctor's system be implemented. Therefore, family doctor
system is a way to understand and diagnose properly. This will increase better condition of well-
being in terms of health. The Family doctor can have a great impact towards offering better
health service and good quality. To be able to avoid medical mistakes and recruitment, family
doctor system is a way to be fulfilled to the region.
Another deficiency of the department that unclearly managed is financed department and
admirative. Both departments are run by only one person. Based on the interview with the manager
of the Harem hostile, he oversees both departments finance and administration at the same time
(Kamaran,2018). The Hospital they had eye department, but they left the hospital and went to work
in somewhere else. The manager did not want to address why the department left the hospital. In
the light of the manager speech, it was cleared that, the hospital didn’t have the clear budget to the
marketing department because the hospital has not been departmentalized yet.
Facility and Salary in Harem Hospital
Facility and salary are two major elements that effecting the performance of the work and
giving power towards better outcomes. Hospitals employment is significantly varying in today’s
business environment, this has brought different thing issue to the business around the globe
especially the developing countries. In Kurdistan region and especially Sulaymani, this is an issue
as other places in the world. Harem hospital like any other private hospital has own staff consists
of physicians, nurses, and cleaner. In terms of the facility, the hospital has one big hall and three
departments for surgery including 20 single room (kamaran,2018). The range of salary for them is
quite different from top to the bottom among doctors and nurses. Because according to the report
that has been conducted in the UK, the payment impact affects the performance of the program
(Søren Rud, Turner, Ale, Ruth2, Ruth, Martin4, Matthew 2014). According to Harem hospital
management as in an interview with him inside the hospital, he said, “the nurse staff payment is
low compare to the doctors” this will have an impact on the performance in the business. When a
nurse is waiting for thirty days to get salary and a doctor’s payment range between five hundred
thousand to one million Iraqi dinars. This payment is according to the type surgery and operation.
The nurse payment is rated from three hundred thousand to maximum five hundred thousand
monthly.
20
Schedule and Working Hours in Harem Hospital
Medical hospital schedule is an important part of the work that requires a continuous
commitment to be able to provide patient care. It consists of many hours, days in the week and on
call schedule as well. Harem hospital schedule for the nurse starts form 8 in the early morning to
4 afternoons. Many different staff and doctors are working in the hospital and the hospital main
working hour is concentrated in between the eight in the morning to 4 afternoons. This displays
that, the hospital does not provide twenty-four hours of medical service while patients expect to
receive the treatment anytime they may visit. In private hospitals, a larger number of patients are
seen with a variety of issues that means too much of working hours and pressure on the staff
(Slayter, 2014). in this case, the staff is expected to get paid a high salary. According to the
interview with the Harem private hospital manager, the nurse staff gets paid at the low range of
salary. Researches have shown that the discrepancy of salary affects the attitude of the staff and
increases turnover. The doctor’s salary is much higher compared with the nurse staff while the
working hour is longer for the nurse. Too much turnover put a high cost on the business because
new staff usually need training and time to learn the basic procedure and policy of the work
environment (Pfeffer, Davis-Blake, 1992, P 750-758). Add to that, the business revenue going
down instead of going up. Ultimately, working long hour for low salary increases the rate of
turnover and decreases the revenue due to increasing the cost to the new staff in terms of training
and other stuff.
Key Factors That Caused the Successful Case to Meet or Exceed Expectations
Faruk Medical City
Internal Strengths
Structural Strategy
With the rapid change in science and technology, healthcare requires more and intensive
focus and improvement. The improvement that happens nowadays can have a rapid effect on the
business and play an efficient and safe role in the business. This change is urgently happening
sometimes and needs an urgent response within spending a large amount of money. Since Faruk
medical city has a strong background in finance, therefore, it will not be that difficult to them to
face it and adapt the change in their project. Faruk medical service differs from other by having
21
well-trained staff and international experts in different specialties such as plastic surgery, breast
surgery, cancer treatment, hematology, ophthalmology, neurology and some others. The business
structure is moderately applying matrix structure rather than traditional one (Stuckenbruck, L.C.
1979). For instance, the whole group of Faruk is interrelated and there and heretical structure that
decision makes based on.
This has given the power to the business to come cross the rivals in the area. Matrix
structures hold every manager accountable for different positions. Besides, the hospital the City
has a good functional structure that concerning to operations and strategic planning. For example,
the hospital is grouped with Faruk holding group but each department in the hospital holds
responsible for its own work such as accounting, marketing. Reports prove that when a business
work like that then it should stay sustainable (Royer, 2015). A business with having all its own
departments independently operated will have a better chance to survive and to stay in the market
compared to the one with only a single manager for everything. A matrix structure nowadays has
given the strength and positive power to the business to stay in business and even better future is
always expected. Ultimately, Faruk medical hospital has competency power in terms of structure
and managerial skills.
Right and Modern Equipment and Building Design
Nowadays, I n developing countries the advanced hospital equipment is obvious even from
a glance through many the catalogue, factories. Evaluating medical equipment come along with
the medical science development. It is estimated that good and modern medical devices are
delivering better medical care to the population (Taghipour, S., Banjevic, D., & Jardine, A. (2011).
Since Faruk medical city has been built up based on the modern design and advanced technology,
therefore, they have installed that equipment for their business. This equipment is used largely to
diagnose or examination of the medical subjects and they came to exist due to the pattern of
diseases and treatment. Faruk medical city has many of that advanced equipment including, six-
open heart intensive care beds, six coronary care beds equipped with the latest and most advanced
medical technology. Having this equipment need experts and specialists to work on, therefore,
Faruk medical plan hired right people with right skills and knowledge for them. This also widely
has increased the quality of the hospital’s result and outcome. At the same time, it has increased
the efficiency and effectiveness in terms of processing the patients care.
22
Furthermore, the hospital design has a proper and modern design that has been established
by famous Turkish company specialist in architecture. The building has an exemplary design in
terms of waiting for wall and reception. For instance, according to the report, it is proved that the
design of the hospital influences the patients’ mood regarding the medical practice in the hospital
(Radzi, 2017). The hospital has also a hotel that well-prepared to the patients relative to rest
whenever they want to. This has an important role in the identity of the business. Shortly, a well
prepared like that with equipment and right staff within an advanced building can stay sustainable
in the region.
Different Departments in The Faruk Medical City
Having different departments in the healthcare center is an important value regarding the
care delivery to the patients. It is a key factor to attract huge customers at large number to receive
the treatment in that hospital due to having the capacity. Faruk Hospital city has a proper
emergency department that is unavailable in the other private hospitals in the area. An emergency
is a crucial and valid department that every hospital should have it due to immediate accident and
response that may happen anytime. The major role of emergency is making a truthful diagnosis or
assessment of the patients and prescribing a proper treatment according to the case (British
Medical Journal, 1979). Besides, having almost all department Faruk medical like, gynecology,
breast cancer, oncology, orthopedics department, plastic surgery, open heart surgery, the medical
center has a very rapid action response to the emergency case. Utilizing different factor in the city
has advanced the medical care in that hospital. For example, having a helicopter to their emergency
department is a unique service that is not available at the other hospital in entire Iraq and Kurdistan
region (Faruk, 2017).
Unlike other private hospitals, In the Faruk private hospital value chain of the business is
clearly well-planned. Unlike other private. The neonatal department is another critical department
in the hospital that strengthen the success of the hospital. this department it is equipped with proper
equipment. They have five beds for neonatal treatment. There is a direct relationship between the
gynecology and neonatal. Having almost all departments in the hospital with proper technology
and experts differentiate the hospital performance and sustainability form others. This can reflect
23
an example of economy of scale that the hospital works on more for future. Shortly, lack of proper
utilities of medical departments in other private hospitals prioritizing Faruk medical city to work
successfully in the region.
Trust Is Matter in Other Hospitals
Healthcare trust is a crucial matter of success or the failure of the business. This is more
likely focused on the developing countries. It has also a direct relation to the success and
sustainability of the firm. Importantly, healthcare is a sensitive unit that precisely affecting people
life. Since the Kurdistan region has its own health minister and system, but it has not been able to
deliver trustful medical care to the population due to some routines and unclear strategies. It is said
that; only poor people visit the healthcare in the region because they don’t have enough money to
go to the private sectors or to go abroad. The health care and the patient’s perspective have not
met and trust is still mattered between them. Kurdistan health care has not been able to go with the
medical science development while the demand for the treatment has increased due to the burden
of different diseases (Calnane, Rowe, 2006).
In Kurdistan due to lack of trust between the public health care and the hospital people are
looking for better choices. Faruk medical city has appeared with better technology and experts.
Consequently, lack of trust in medical care leads so many people to leave the region to other
countries or to a private hospital to get treatment. For example, “Kurdish leaders don’t trust
healthcare in Iraqi Kurdistan, seek treatment abroad” this is a headline of an article that been edited
by medical group staff in Hawler (Editorial Staff in Health, 2016). This displays that, people do
not believe in the health system quality in Kurdistan. Among the leaders, the head of the
conservative democratic party and previous Kurdistan leader Barzani is one of the leaders that he
goes abroad for the treatment (Editorial Staff in Health, 2016). For example, he left Kurdistan for
Europe on 24 august 2016 for eye treatment. Fortunately, Faruk medical city has properly
advanced medical service delivery in the region. however, it takes time to build trust, now the trust
has started by having proper technology and proper use of the advanced equipment. Briefly, trust
is a matter of continuous business sustainability and success. Unfortunately, this trust has not been
established in two decades ago.
External Factors
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Customers Expectation and Hospital Reputation
In today’s business and industry, healthcare has quickly expanded and people turn to
depend on the private healthcare. There are many factors that pave the way to that people rely on
the private sectors rather than the public health sector. This rapid change in the customer's
expectation has enhanced the health market to work with better quality and proper technology.
Increasing life expectancy, diseases burden and the demand by the patient to better treatment
(Karim, 2016). On the other hand, having the right equipment, technology, and qualified
physicians are valid major factors that make the hospital reputation. Faruk hospital installed
universal land advanced technology with proper equipment are in the previous section well-
explained. The hospital services are ranked by many factors including equipment, physicians, and
technology.
In Faruk medical city, those factors are working properly in the city respectively. Treating
and better drugs in the hospital also have been able to work on the customers’ expectation to attract
them to receive medication. For instance, open heart surgery and cancer treatment with leveraging
new technology. This shows that how wisely Faruk hospital has been able to understand the patient
expectation and to navigate the future to succeed and stay in business (Doulgeris, 2017). It is
difficult to build up reputation unless there is large financial support. Since the hospital budget
costed about 200 million American dollars, then it is not challenging to dedicate enough budget to
build up the hospital by purchasing advanced equipment and investing in human capital (Faruk,
2014). Some reports showed that the importance of building reputation directly related to the
technology and physicians. According to the findings, technology and physicians are two certain
factors to build up the reputation of the hospitals. Technology and physicians ranked to lift the
better healthcare service. For instance, using IT for testing DNA and protein is really playing an
important role. In addition, IT enables the physicians to help them diagnosing diseases and
treatment (Mathur, 2004). Now, the hospital reputation is related to many factors including
technology and physicians. This will increase the patient's expectation to receive their medical care
in such hospital.
Weak Public Healthcare in the Region
Public care is like any other governmental care run by the government with a special budget
that dedicates to it. It is expected to deliver a good healthcare to the population by having
25
everything including, construction, doctors, equipment, and medicine. If medical service is well
provided to the patients and met the patient’s expectation then they will stay in touch with it and
do not choose to spend for an expensive healthcare. In the developed countries public hospital is a
preferable to the most people especially not so rich people because they can’t afford a large fee to
the private hospital. Since Kurdistan public health care is not at the patient’s expectation, therefore
this has given the chance to the private sector to invest in medical care in the region. Faruk medical
city is one of the successful private hospitals that people are stepping to. The difference between
private hospital a public hospital is an ownership (Koshal, 2015). Since the pubic hospital is run
by the public sector so the money for this sector is provided by the ministry of health. Further, the
public care service is none profitable business while the private sector is a profitable and a fee of
the public sector is at lower cost rate. Due to the economic crisis going on in the region the public-
sector care has decline and people have lost faith in public health sectors. Repot have shown that,
the failure of the healthcare system is big because the government holds itself for everything while
the government cannot provide all service to the population in the region (Neurink,2014). As the
author of the article raises that “in the past years, the private sector has stepped in with private
laboratories and clinics, which mostly work to a better standard. One of these days the Faruk
Medical Centre will open in Sulaymani, based on knowledge and skills equal to the West”
(Nureink, 2014). Since both Iraqi and Kurdistan health care come cross with financial and
incompetent plan to provide all services to the citizen, it is right time to start up the hospital
business and to invest in healthcare.
Other Factors
Different factors draw the line between the business success and failure. Each factor has
put either a positive or a negative impact on the business. Factors are often quite different from
one business to another, while some identical factors always play an important role. For instance,
financial support. Faruk medical city has invested 200 million dollars in establishing the city.
Faruk medical city has a strong financial background. Another important factor is the schedule of
working. This hospital is working like any successful companies which are a valid part of the
success of the business. Working hour is eight hours per a day and further, the medical services do
not stop after eight hours working.
26
There is another shift that working staying active and receiving patients. the city has a
mobile team they are working to provide service outside the hospital. They have an ambulance
with a hotline to contact with during the accident to reach the location. Faruk medical is practicing
healthcare insurance. mostly all the Faruk holding group registered in Faruk medical hospital and
the companies pay the insurance for them. moreover, they are launching a new branch in the
medical city is another valuable factor that increases financial endorsement in the medical city.
Currently, Faruk medical city has lunched sperm freezing system. They can incubate male and
female sperm and eggs that they can use in in the future. This service is useful to those people that
they may want to have a babe in their future life. Faruk medical city charges the customers for this
service (Faruk Medical City, 2018).
Similarities between two hospitals
Differences and similarities can be found in both hospitals in the same region. the main
similarity between both hospitals is the geographical position that they located in the same area.
They both providing medical services in the same city with different strategy and plan. Each of
the try to increase the number of their customers by providing them with better medical quality
and outcome. Both of then try to compete at a level of gaining profits and increasing net growth.
Both hospitals have a different number of beds for patients and surgery. they have their own
secret of business working that kept inside the hospitals. Both hospitals try to have a proper
communication regarding the health care provision and the customers persuade. Both hospitals
compete at wining and increasing the number of their patients. In both hospitals, local doctors
and graduated paramedics are working. Both hospital strategy has the bed for the patients but
with different quality and modern. They both have restaurant and food service. In addition, both
hospitals that working in the area wants to grab the most customers attention to guarantee the
sustainability of the business, especially in the long run. Investing in doctors are another
common point between them regarding the medical service provision.
In conclusion, the research has shown there are lots of factors influence the success and
failure of both private hospitals in the region. Each private hospital sectors are working with
different rhythm and harmony and each tries to enhance their own market share customers. In the
absence of a good medical quality by the public sectors and lack of the trust of the public
hospitals, the private hospital took the advantage of the situation to work more likely towards
27
customers. Different actors play different roles in succeeding and sustaining the business.
However, both hospitals major goal is to deliver medical care and patients satisfaction, at the
same time, utilizing the resources and allocation they rightly show how effective and successful
they operate. According to the research Faruk Medical city prioritizes in investing modern
technology, human capital, and equipment including almost all the departments. On the other
hand, Harem private hospital can develop its own strategy opening the rest of the departments
like other private hospitals to improve its own goals and future sustainability. Digitizing and
computerizing the system reduce the operating cost and increases the chance of succeeding the
business.
28
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