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% 10 Female Literacy Rate (%) 74.71% Decreased slightly from earlier 827 . 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. Increasing Max Healthcare delivers 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 . ALOS at a steady Decline by -3% every 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 Surgery, Spine Cardiology, Critical Surgery, & Bariatric Care, Neurosciences, Surgery Orthopedics 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 Specif ically assesses clinical quality. • Clinical Committees NABL Accreditation: Max Pathology Labs NABH: 2 Blood Banks • Adverse Event Tracking ISO Certif ication: 5 Max Hospitals are ISO 9001-2000 Certif ied • 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
"Ppt on Cost Control Initiaves in Facility Management"