Healthcare and Hospital Management

Brief Scenario

  • According to the Organization for Economic Co-operation and Development (OECD), healthcare spending represents an average of 9.5% of GDP for the 34 OECD countries in North and South America, Europe and the Asia/Pacific region.
  • For a country like India, health care quality and spread of delivery set-up assume special significance due to overall poor state of health, poverty, socio-cultural issues and poor infrastructure.
  • The cost of healthcare is increasing. However, there is scope for cost efficiency and cost reduction.
  • In India, achievements in health profile and healthcare system are a major success story of the past four decades.
  • Many Indian private hospitals and healthcare experts have acquired international reputation. Many of them are attracting patients from South Africa, Middle East and neighboring countries like Nepal, Pakistan, Sri Lanka and Bangladesh.
  • The hospital and diagnostics center in India received foreign direct investment (FDI) worth US$ 1,914.28 million, while drugs & pharmaceutical and medical & surgical appliances industry registered FDI worth US$ 11,318.32 million and US$ 653.45 million, respectively during April 2000 to June 2013, according to data provided by Department of Industrial Policy and Promotion (DIPP).

PLACON Observations

  • PLACON has observed that the per capita spend on healthcare (both public and private), as well as the healthcare spend as a portion of the comparable economies; are way below global averages.
  • It is also noticed that the pool of available capital to pay for healthcare is either decreasing or staying flat, while costs are rising.
  • PLACON experience shows that Indians are now ready to spend more on health care for better diagnosis and treatments. There is an increasing tendency among people to go to private hospitals, consulting rooms and nursing homes.
  • It is observed that as compared to the spirit of charity and welfare; there is an increasing commercialization of health care delivery. Number of corporate hospitals is increasing. This provides a great scope for organizations planning to execute their CSR activities.
  • Private hospitals with the association of government health schemes can initiate health programs for the poor suffering from critical diseases.
  • There is an increased demand for healthcare services by an expanding pool of consumer-patients and by growth in costly chronic disease management.
  • PLACON feels that there is need for increasing health awareness and changing the mindset of rural women and children on several socio-cultural beliefs and customs related to health and hygiene. This implies that the government and regulating agencies should aim at creating health awareness and its benefits through their policies and schemes.
  • Still rural areas need more attention of qualified doctors, paramedical staff and healthcare infrastructure. With the help of NGOs and hospitals, government can take the community out of the vicious circle of superstitious beliefs and self-made, untrained “Doctors”.
  • It is observed that growing hospitals require formal Management Systems, business plans, professional marketing strategy, efficient cost control, budgetary control & cash flow management; and motivated human resource. These hospitals should use findings from research and surveys in their decision making.
  • A large number of medical practitioners and surgeons with Indian educational background have settled abroad successfully. They are well respected in their profession and local communities. With the growing popularity of Indian hospitals globally, these practitioners have a good scope to start their own institutions or join the existing ones in India.

PLACON Competency

  • PLACON has provided professional help to governments, private hospitals, international development agencies, NGOs, health care co-operatives and professional bodies like medical associations.
  • PLACON has unique expertise in providing technical support by way of establishing and managing project monitoring units (PMUs) of large health care programs
  • PLACON has participated in designing and implementation of various Healthcare Management programs in a variety of healthcare and hospital management institutions with specific focus on Accounting, Costing, Financial Management, Financial Control Systems and Strategic Planning
  • An overview of PLACON capabilities in Healthcare Sector is provided below:
    • Costing of Hospital Services
    • Special surveys
    • Management of Government Health Department and  Organizational System
    • Support provider to government  in policy formation & development
    • Management of Public Healthcare System
    • Design and Planning Program/ Project in healthcare.
    • Program/ Project Monitoring & Evaluation systems
    • Conducting functional training program for executives of health care organizations.
    • Designing & conducting hospital management training programs and courses.
    • Cost Structure Analysis for Decision Making
    • Broad-based Institutional Analysis of institutional capacities for health care program implementation.
    • Design and assessment of monitoring & evaluation system.
    • Assessment and Redesigning the Budgetary Control System
    • Professional event designing and organizing, e.g., seminar, conference on relevant health care theme.
    • Feasibility study and detailed project report (DPR) for starting a hospital or medical collage.

Download a detailed description of the Sector Scenario, Challenges & Opportunities, PLACON Experience and an Illustrative Case Experience (pdf,  595kb)