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					Improving Revenue and Profitability
             “The Max Healthcare Experience”


     IFC , International Private Healthcare Conference, 2009

                                                               1
             I
Max Health care : An Overview




                                2
                                                                  Max Healthcare Network – N.C.R.


MAX HEART & VASCULAR INSTITUTE, Saket
    Dec 2004; (South Delhi) ; ( 200 Beds)                                            MAX SUPER SPECIALITY HOSPITAL,
                                                                                     May 2006; (South Delhi) ; (200 Beds)


    MAX HOSPITAL, Gurgaon
       N.C.R; (July 2007), (102
                  beds)
                                                                                             MAX HOSPITAL , NOIDA
                                                                                          N.C.R.; August 2002; (33 beds)

          MAX Healthcare
          currently has the
        largest Penetration                                                              MAX BALAJI HOSPITAL,
           in NCR (National                                                                   PATPARGANJ
            Capital Region) .                                                            May 2005;(East Delhi),(154 Beds)




   MAX HOSPITAL, PITAMPURA ,
   North Delhi ; July 2007; (90 BEDS)                                                   MAX CENTRE Panchsheel
                                                                                      South Delhi ; (November 2005)

                                            N.C.R.= National Capital Region, India
                                                                                                              3
        2
Markets at Delhi & NCR




                         4
                                                Delhi - Broad Demographics


1    Total Population                           1.38 Crores
2    SC Population                                17 %
3    0-6 age population                          14.5%
4    Rural Population                              39.8%          Reduction from initial 53% ( 1991)
5    Population Growth Rate                        3.81%          Double the National Average
6    Density (Per Sq. K.M.)                        9340
7    Total Area sq. K.M.                           1483
8    Sex Ratio (per 1000 Males)                    821
9    Total Literacy Rate (%) Persons             81.67%
     Female Literacy Rate (%)                                     Decreased slightly from earlier 827 .
10                                                74.71%
                                                                       National Average 933
11   Average Family Size                           5.06               Delhi Region growing
                                                                  Urban 4.99 , Rural 6
12   Birth Rate (per 1000) ,2001                  21.24               rapidly – population
13   Death Rate (per 1000),2001                    5.81             wise and overall growth.
14   Infant Mortality Rate (per 1000),2001        23.93
     PER CAPITA INCOME AT CURRENT PRICES
                                                Rs..38864
15      FOR THE YEAR 2000-01(QUICK
        ESTIMATES)
16   Ratio Population (Natural Vs Migration )       1 : 1.24

                                                                                                5
                                                               Source : CENSUS 2001
Delhi - Economic Environment



     Urbanization ( 2006)
      stands at 94% with a
    healthy growth of 10.5%




                              6
                                                                                              -
                                          Emerging Business competition

•      NCR Growing rapidly in health care investment , due to “private –investment
       friendly” attitude of the respective governments

•    Gurgaon – all set to have a 600 beds Medicity by Dec 2009


•     Ghaziabad & Noida – will see around additional 300 beds projects by end of
      year 2009 by other brands

•     South and North Delhi similarly will see an investment of additional        350
     beds by existing hospitals and new entrée’s


      Health “Unmet –need”
     Delhi City has 2.06 beds for every                     Roughly 1200 additional
      1000 population; as against the                       beds by other healthcare
    recommended = 5 / 1000 Population                      organizations slated at year
          (WHO, Health For all 2000)                                   end
                                                                    2009-10.




                                                                                          7
         3
Key Business Strategies




                          8
                                                                                                                  -
                                       Business Perspectives at Max Healthcare
                                                           &
                                       Structural Changes in Health care Industry


             Market Trend                                              Implications
Changing disease mix                      Max Health care focuses on Product portfolio- Cardiac; Neuro, Mental
                                          Health; Preventive Health; Cancer and Infectious Diseases.


Increased share of Healthcare             Max Healthcare looks at Cost effective , health care models – both with
expenses                                  clinical effectiveness and business efficacy

Movement towards Health Insurance         Currently Max Healthcare has a strong supportive relationship with TPA’s
                                          and public health Schemes ( 20-21% TPA’s ; approx 12 % Public –CGHS,
                                          ECHS)
Discerning and demanding customers        Deployment of latest technology and skills; Dissemination through
                                          information search channels.

           Max Healthcare delivers
Increasing competition                    A Professionally driven team which undertakes- Research based
          specially designed, viable      positioning to identify and occupy (Opportunity) customer’s mind; Focused
          Business programme for          sales effort.
         all segments of community,
Demographic shift                         The size of senior citizen population would be 75.3 million by 2015 , a
             with special focus on        sizable percentage (5.3%) requiring medical treatment . Max has special
              vulnerable sections         focus on Elderly population and Geriatrics .
Institutional Sales                       Growing relevance of credit & relationship oriented businesses. A sizeable
                                          – 35-40% business is by “Collective Institutional sales”

                                                                                                           9
       4
What Worked Well …..




                       10
                                                          Operational Strategies

•   Case Mix Management
     Pan Max has maintained a healthy Surgical –Medical Case mix of 65 % : 35% ( Ref: On Inpatient Topline) ,
    irrespective of addition of beds every consecutive year .
    Further optimizing of the Inpatient Surgical-Medical case-mix for better Healthcare facility utilization , is a
    Pan Max Drive.


•   Average Length Of Stay
    Endeavoring to bring about reduction in ALOS, across units , through better clinical care management and
    monitoring .                                                                                           Average Length of Stay

                                                                                       3.55



                                                             Days ( Length of Stay )
                                                                                       3.50         3.50
                       ALOS at a steady Decline                                        3.45
                         by -3% every year .                                           3.40                            3.40

                                                                                       3.35
                                                                                                                                          3.31
                                                                                       3.30
                                                                                       3.25
                                                                                       3.20
                                                                                              FY 2006-07         FY 2007-08         FY 2008-09
                                                                                                                    Year




                                                                                                                                                 11
             5
Business Development Initiatives




                                   12
           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



                                            13
                                             Max Brand - MHC Trust Building
                                                               Framework
             Rational Experience


                                 Equipment /            Nursing
               Physicians                                                   Facilities
                                 Technology              Care




 Customer                                                                                   Build
Experience        People – Processes – Technology - Infrastructure                          Trust

                                                                                                Word of mouth
                                                                                                Positive referencing
                                                                              Pharmacy,
               Look – Feel –                                                    F&B,
                               Physi-cians   Front Office    Nursing Care
               Smell - Touch                                                Housekeeping,
                                                                                 etc
                                     Customer Touch-points
         Emotive Experience




                                                                                                         14
                                      How are we selling it?
                                           Familiarization Visits
        Camps
                                           Network Hospital Tie-ups
        CME’s
                                           OPD’s
        Health Talks
                                           Relationship Programs
        Stalls
                                           Time bound -Promotional Offers
Brand
        New Products
                                            ‘Fee for Service’ Tie-ups
        New Consultant
        Introductions                       ‘Max Visiting Consultant’ Tie-ups

        New Territory Mapping/              Courtesy Attachments
        Visits

                                 Revenue
                                                                        15
By a comprehensive Stakeholder & channel Tapping




                                             16
                            % Figures for FY 08-09
                                                                    International Markets
                                 Orthopedics,
                                 Aesthetic &
                                Reconstructive
                                                                      Cardiology, Critical
                                Surgery, Spine
                                                                     Care, Neurosciences,
                              Surgery, & Bariatric
                                                                         Orthopedics
                                   Surgery



                       US/Canada                     Europe

   Orthopedics,
   Aesthetic &
  Reconstructive                                                Gulf SAARC
  Surgery, Spine                                       Africa
Surgery, & Bariatric
     Surgery
                                Neurosciences,                     Aesthetic Surgery,
                               Spine & Oncology                       Cardiology,
                                                                     Neurosciences,
                                                                 Orthopedics, Oncology



                                                                                              17
                             Rack/D2 Markets         Rack/Rack+ Markets        Premium Markets
        6
Customer Initiatives
         &
  Quality of Care




                       18
                                              Max Healthy Neighbourhood

      Customer Relationship Programme
      • Preferred Healthcare Provider for RWA’s and Club members

      Benefits
      • 4055 4055 Emergency Signage Branding which will aid
        Emergency Recall
      • Acquisition of updated Residents Database
      • Quarterly Customer engagement activities like Health camps
        and talks




Location: GK 1-R Block ,Near M Block Market         Location: Vasant Enclave, on Airport Road
                                                                                                19
                                                             Max Health Line




First Edition: Released on 2nd Jul, 07 coinciding
with the Inauguration of Max Hospital, Gurgaon
Circulation: 40,000 Households in Gurgaon
Theme: Emergency, Seasonal Diseases,
Preventive Health & Allied Services


                                                    Second Edition :Released on 8th Sep, 07
                                                    Circulation :2,40,000 Households in Gurgaon &
                                                    South Delhi
                                                    Theme: Emergency, Woman & Child Care,
                                                    Lifestyle Management & Allied Services




                                                                                          20
                                         New PHP


•    A programme that suits
     your Health and your
     wallet


•    Platinum PHP




Growth in total PHP revenue by 36% YOY

17,000 PHP’s undertaken in 2008-2009




                                             21
         Quality and Standardization – Not an Initiative but a –
    “EMBEDDED PROCESS” in ensuring Affordable, accessible, Cost –effective,
                                                   High quality care .


                                                                         Clinical Governance
   Track Record of Leadership                       •   Clinical Leadership: HODs /Medical Advisor
    Position in Quality of Services:                 •   Credentialing
        NABH Accreditation:                         •   Professional Conduct Guidelines
        MHVI & MSSH
        GGN : under preparation                     •   Audits
        Specifically assesses clinical quality.
                                                     •   Clinical Committees
        NABL Accreditation: Max Pathology Labs
        NABH: 2 Blood Banks                         •   Adverse Event Tracking
        ISO Certification: 5 Max Hospitals are
         ISO 9001-2000 Certified
                                                     •   Physician Disciplinary Policy
        ISO 18000: PPA                              •   Risk Mitigation (Risk Assessment Group)
        IMS: for MHVI, PPG & PPA underway
                                                     •   Department Specific Clinical Scorecard
                                                     •   Performance Evaluation

                                                                                                   22
           7
Strategy for Sustained Growth




                                23
                                        Strategies for sustained growth

•    Max Health care endeavors to replicate its Brand success , and affordable quality
    care from NCR Region to, select regions within 300 Kms radius .


•   Looking at strategic initiaves on enabling effective “Public –Private Partnership”
    in Northern India

•   Launch of Superspeciality hospitals , with Cost control Models , and community
    driven service mix , In Tier-2 Cities .

•   Enhancing its Programme design , by Introducing , state- of-art ,
    Oncosurgery, Infertility Line management , High End Orthopedic surgeries etc .


•   Effective systems of Business management and Service line costing through
    Innovative – Business simulation Models.


•    Leverage of Max Business strategies and Operations efficiency models into other
     “tier 2” Hospitals , through Management Contracts/ tie-ups .

                                                                                 24
Thank You




            25