Healthcare:

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Healthcare Kneel to create a Business that
Heals Sanjay Rai Director Sales
Marketing 21st April 2007
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Contents

• Demographics Customer
• Indian Healthcare Scenario
• Channels
• Key Learning

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Contents

• Demographics Customer
• Indian Healthcare Scenario
• Channels
• Key Learning

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Demographics
Changing Demographics profile Decline in birth
rates and increased life expectancy has led to an
increase in the old age population. Increased
affluence of middle classes has added to the
demand.
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Demographics

• Growing Consuming Class (Middle Class) with an
  annual income of 1,000 - 4,778 USD, will
  constitute around 75 million households in 2006.
  
• Indias middle class is bigger than the
  population of United States.
• Second largest pool of English speaking technical
  power in the world.
• Literacy rate has increased from 18.33 in 1951
  to 65.38 in 2001 (Last Census)
• Population growth
• Now - 1.38
• 1977 - 1.85
• 1987 - 2.07

Source NCAER
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Customer

• Patients today are more health conscious and
  aware of options available. This new sense of
  self worth, wellness and accountability can be
  attributed to
• Better access to medical information
• Higher disposable income
• Weakening of classical doctor patient
  relationship
• Higher productivity
• Increasing need for wellness
• Patients desire to be part of the decision making
  process.
• All being driven by education, improving
  financial conditions.
• With both urban and rural consumers looking at
  quality healthcare, a significant opportunity
  exists for existing players.

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Contents

• Demographics Customer
• Indian Healthcare Scenario
• Channels
• Key Learning

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Indian Healthcare Scenario
US 18.7 billion
2000-01
5.2 of GDP
US 45 billion
2012 (projected)
8.5 of GDP

• Expected to grow at 15
• over next 4-5 years

• Growing at 13 p.a

Source CII McKinsey
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Infrastructure

• Specialized sub-specialized treatment
• surgical procedure, intensive care, continuous
  and highly specialized critical care

TERTIARY

• Departmentalized hospital services
• Clinical nursing care, surgical procedures,
  administrative ancillary services

SECONDARY

• Intermediate moderate category of supervised
  care
• Clinical care, administrative ancillary services

PRIMARY
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Infrastructure
TERTIARY
SECONDARY
PRIMARY
Infrastructure statistics as per year 2001
figures
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Demand Supply

• Demand
• Additional requirement of 750,000 beds, 520,000
  doctors
• Need for overall investment of US 26 28
  billion
• Primarily 80 of the above investments have been
  projected to be from the private sector

• Supply
• Healthcare industry employs over 4 million people
• Presence of over 0.5 million doctors employed
  across approx 15,000 hospitals
• Network of 0.75 mn nurses caring for over 870,000
  hospital bed

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Max Healthcare - Centre of Excellence
Max Heart Vascular Institute, Saket New Delhi
Max Super Speciality Hospital, Saket New Delhi

• FOCUS Tertiary care facilities as Cardiology,
  Neuro Surgery, Vascular Surgery, Orthopaedics and
  joint replacement, Aesthetic Reconstructive
  Surgery, Oncology.
• State-of-the-art infrastructure, equipment and
  diagnostics

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Max Healthcare - Centre of Excellence Delhi
National Capital Region
Max Speciality Clinic (Eye Dental
Care) Panchsheel Park
Max Balaji Hospital, Patparganj
Max Med Centre, Panchsheel Park
Max Hospital, Pitampura
Max Hospital, Noida
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Healthcare Spend
Direct household spend
Private/social / community insurance
Employers spend
Governments spend

• Two-thirds of healthcare spending is
  out-of-pocket
• Healthcare insurance premium collected in 2005
  06 registered a growth of 35 over year 2004
  05.
• In the event of minimum capital requirement of
  USD 22 million being reduced to USD 11 million, a
  number of standalone players would enter the fray
  as is the trend across the world.

100 US 1,830 million

• Out-of-pocket

2000-01

• Prepayment

SourceNSSOCMIENCAERAnnual ReportsGovt
BudgetsEconomic Survey 2000-01
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Market Trend
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Contents

• Demographics Customer
• Indian Healthcare Scenario
• Channels
• Key Learning

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Channels

• Brand
• Referral Doctors
• Institutional Customers
• TPA
• International

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Brand

• Although I and my colleagues in Healthcare
  Marketing know that this is the biggest Channel
  we would like the paradigm of the Doctor
  Patient Pull remain
• Pull relationship

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Referral Channel

• Network with
• Doctors
• Smaller Hospitals Nursing Homes
• CCU / Managed Care Projects
• Win Win relationship

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Institutional Channel

• Network with
• Corporates
• PSUs
• Government Empanelment
• Need based relationship

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TPA Channel

• Develop relationship with TPAs
• Want based relationship Growing Pie
• Building long term relationship in the spirit of
  partnership

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International Channel

• Network with
• Medical Travel Operators
• Insurance Companies / Corporates
• Referral Doctors
• Hospitals
• Governments
• Opportunity Relationship

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Contents

• Demographics Customer
• Indian Healthcare Scenario
• Channels
• Key Learning

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Learning 1 Success is about Trust
Depends on building
TRUST
Not only through Doctors Nurses Facilities and
Equipment International Best Practices But by
Providing Remarkable Service Experiences
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Service
Inspire trust through Communication
plus
Transparency Reassurance Re-engagement
24 x 7
When a customer calls up When a customer visits
us When a customer stays with us When a customer
goes back home
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Build Trust
Passion
Vision
Deliver world-class healthcare with a service
focus, by creating an institution committed to
the highest standards of medical service
excellence, patient care, scientific knowledge
medical education

• Create unparalleled standards of medical
  service excellence
• Care provider of FIRST CHOICE
• Principal choice for physicians
• Ethical practices
• Create national centre of excellence for select
  super-specialties
• Build towards international reach by creating
• patient confidence through professional skills,
  research and technology

Mission
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Learning 2 Care is the new buzz Word
Medical Excellence
Personal caring and warmth
Care
World Class Service Standards
Care for Attendants
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Learning 3 Its about Relationships

• Relationship building with all partners
• Doctors Medical Community
• Other Healthcare Providers
• TPAs
• Government Legal System

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Learning 4 Customer is the Boss

• SPARSH Touch points of service!
• TCEQ Our mirror of Service Delivery!
• Mentor System For more than what Medicine can
  deliver!
• Expectation Studies Effective Hotel Services!
• Feedback Call All about medical service
  feedback support!
• Six Sigma A better faster Cheaper approach!

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Learning 5 If we Can

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Thank You