A Letter to my Readers

Dear Readers,

Many of you would have noticed that I have hardly been writing this year.

Almost a year has gone by, without a single new post on this blog. Some of you might have wondered, where have I been hiding. Well, to tell you the truth, for most of the year I have been incredibly busy, mostly chasing business for Fortis Healthcare. Till recently, I was heading Sales and Marketing there and this involved a lot of travel, a daily commute from my home to work and, which would easily top 80 kms a day and would gobble up at least 3 hours on the roads in Delhi. Now, anyone who lives in Delhi, knows what this means both on a good and God forbid on a bad day. All this added up to a 12 plus hours a day of work and travel, which left me no time to do anything else.

And than, there was travel in India and abroad. This in a given month would easily consume a minimum of 10 days. While, I love traveling and usually find it uplifting, it would still leave me with even lesser time home, where I mostly write. While on long plane journeys pretty much around the world, I learnt I could easily read, but unfortunately, I also learnt on these journeys that writing inside an aircraft  is not my cup of tea. For me it is a solitary vocation, to be pursued in the privacy of my home.

Thus, over the year, as I read and traveled and toiled at Fortis, I kept accumulating new experiences, great insights and thoughts, that I knew would one day be shared with many of you on this blog.

Last month, I left Fortis, and returned to work at Max Healthcare, which has been a happy hunting ground for me in the past too. Returning to Max Healthcare, also meant less hours commuting to work (the office is 15 minutes away from home), less travel (at least in India, all of our hospitals are in North India, most of them in the National Capital Region) and hence, I am now hopeful of putting together more posts and the output here should go up.

Well, from the point of view of the journey of this blog, this year has just run away too quickly. As I recommence this journey, I shall look forward to your usual comments, feedback and encouragement.

Sincerely,

Anas

 

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Managing Swine Flu in India.

swine-flu1The world is all agog with the global spread of the swine flu. The outbreak first reported from Mexico has rapidly spread to the United States and Europe. Countries the world over are rushing to identify people with flu like symptoms and those who have a history of having been in Mexico or in certain parts of the United States in the recent past are being carefully screened. The airport officials have been alerted to be on the lookout for people with these symptoms and medical personnel have been stationed at the airports to screen travellers arriving from these parts of the world.

In India a person arriving from the US with flu like symptoms has been  detained and admitted in an isolation ward in a local hospital in Hyderabad. The government is busy procuring millions of Tamiflu pills and the drug manufacturers are rushing to cater to this unexpected demand. The newspapers, TV and the digital media is busy putting out stories on swine flu, highlighting the emergency measures being taken the world over to combat the resurgent rogue virus. Theories are being propounded on the impact the virus is likely to have on the economies across the world. The general refrain seems to be as if the recession was not enough, we now have to deal with a real virus running amok.   Continue reading

Pricing Healthcare Services

healthcare-pricingThe pricing of services in a hospital is perhaps one of the most complex and difficult exercise undertaken by the hospital managers. Pricing is  usually a Marketing function in most industries and the final call would usually rest with the Marketing chief. However, in hospitals this seldom happens. Pricing issues are generally discussed and debated in the executive committees and the leadership teams, views are sought from senior medical leaders and usually a consensus is arrived at. l,

Many hospitals follow a ‘market based’ pricing model, which simply means they comb through the pricing policies of their competitors, get pricing data from various labs and other diagnostic centres through their referral sales teams and establish their pricing either basis a premium or a discount from their chosen competitors.

Very few hospitals have a ‘cost plus’ pricing system. Developing an accurate costing of all medical procedures is next to impossible. This is simply because the medical consumables used vary from doctor to doctor and also depend on the complexity, age and general condition of the patient. The cost is also invariably a function of the training and competence of the concerned doctors and medical staff attending on the patient. Thus the cost of a bypass surgery may vary dramatically depending on the condition of the patient, the competence of the surgeon and his team and co-morbidities like diabetes.

The calculation of a price is usually based on a ‘surgeon’s fee’. On top of this is added the cost of anaesthetic gases, the anesthetist’s fee, an OT fee and OT consumables. The surgeon’s fee is usually checked with the hospital’s surgeons and if it is Rs. X, the fee for surgery inclusive of gases, anaesthetist’s fee and the OT charges usually adds up to Rs. 2X. 

The patient on top of this is charged room rent depending on his choice of the hospital room, the cost of medicines and room/ward consumables and all diagnostics. The hospital also charges exorbitant consultant’s visiting fee every time he/she visits a patient in the hospital. (Some hospitals like Artemis cap this to a maximum of two chargeable visits). Strangely all hospitals charge a premium on all services if a patient chooses a single or higher category rooms. This simply means that if one opts for a single room one pays higher for everything, the surgeons fee, the cost of surgery and diagnostic tests. Most people do not know this and believe that the hospitals charge a premium only on room rent. Many would consider this a pernicious practice simply because a surgeon’s skill and time, which are the determinants of his fee has nothing to do with the room category a patient is in.   Continue reading

Driving OPD’s

opd

Outpatient Department or the OPD is critical in the marketing of a hospital. It is the OPD, which drives the admissions in the hospital and the diagnostics including the pathology and imaging. It keeps the doctors busy and the hospital buzzing. The success of various Marketing activities is usually measured by the number of incremental patients who walk through the hospital doors during the promotion.

Here are some ideas on driving the OPD volumes.

Marketing Promotions

I know, many people believe that for a hospital to be involved in Marketing promotions is a strict no no. Offers like free consults and 30% off on all diagnostics somehow seems too much like a ‘Sale’ at the neighbourhood supermarket. However, the truth is that promotions work. Many people like to avail of the promotional offers, walk into the hospital to see a doctor for a long ignored niggling problem and many like to avail themselves of a discount on a CT or MR. The trick here is not to overdo it and to ensure that the communication is not overtly commercial or over the top. I would reckon 4 big promotions a year, (one a quarter) would be fine.   Continue reading