Critical Success Factors for a Hospital Project- Market Research Report
Several factors, starting from the type of medical technology employed to the level of service orientation, from location to the appointment of competent doctors, all plays critical role for a hospital. In a competitive, dynamic environment, the need to remain competitive necessitates adoption of certain strategy that leads to the success path. In the following paragraphs, some of the critical points that have an impact on a hospital project are elaborated.
- Identification of suitable location and availability of land:
Location plays a critical role for a hospital. It may be remembered that after a few years of operation a hospital becomes a landmark for the locality. Hence, the location has to be a permanent one. A location which is convenient to reach by the customer/ patient is always preferable. During the process of identification of the suitable location a detailed study on the catchments area plays a very important role. In most of the cities & towns, availability of suitable space in the identified locality is a major constraint. In almost all the metros and Tier- II cities the cost of the land is exorbitant, which escalates the project.
- Implementation of Hospital Information System (HIS):
Implementation of HIS in hospitals is not mere computerisation of the hospital, it is just not about automation of existing paper trail. This approach if followed will not only lead to failure of the implementation but also transfer the inefficiencies of the manual system to the computerised environment. Proper business processes, re-engineering and accurate definition of workflows incorporating global best practices will improve the effectiveness and efficiency of the hospital and in turn provide better patient care. The return on investment of a HIS implementation can be looked at with both tangible and intangible benefits in mind. A well controlled inventory system can bring in savings of 10 -15% in the first year itself, thereby justifying the investment for a HIS product in big hospitals. The benefits include improved bed turnover ratio, online billing to capture all transactions across all departments, drug expiry management, accurate and reliable laboratory test results due to online interfaces to laboratory equipment, leading to accountability and higher profitability in hospitals.
Articulating and communicating the right vision and mission for HIS implementation project, committed involvement of the top management of a hospital and assiduous training of the actual end users are a few key critical success factors to ensure success of any implementation of HIS in any hospital.
- The Third Party Administrators (TPA):
Third party administrators are the new breed of intermediaries in the sector, introduction of whom will benefit both the insured and the insurer. While the insured is benefited by better service, insurers are benefited by reduction in their administrative costs. They are presumed to infuse new management system and enrich knowledge base of healthcare services and costs. Their presence is aimed at higher efficiency, standardisation and improving the penetration of healthcare insurance in the country. TPAs have a potential source of revenue from benefit management, medical management, provider network management, claim administration, information and data management
- Cost Matters:
The cost that a hospital incurs is very crucial to decide whether a project is a failure or a success. Attributes like real estate prices are a potent yardstick to decide the profitability of a project. In tier-II cities, the real estate prices are low in comparison to the skyrocketing prices in the larger metropolitan cities. There is a decent demand for healthcare services in these cities. Hence hospitals coming up with bed strength between 200 and 250 can expect decent bed occupancy. Most of the hospitals in fact are coming up with set-ups with bed strength anywhere in the range of 150-250 beds. Some hospitals set up primary care centres in tier-II cities and for further reference refer patients to the important hospitals situated in the metros.
- Medical technology:
The breakthroughs in medical technology have come at a consistent pace. Unlike the past when diagnosis took several days, new tools enable accurate diagnosis in a short time. Now diagnostic equipment has become a key differentiator in the healthcare market place. While big corporate hospitals are setting up in-house diagnostic centres, entrepreneurs are setting up standalone diagnostic centres to support small and medium hospitals that lack in-house diagnostic facilities. The public healthcare institutions, meanwhile, have not been as aggressive in upgrading technology due to scarcity of funds. While selected public healthcare institutions have acquired latest technology, most public healthcare institutions, particularly in rural areas, continue to use outdated medical technology.
- Service orientation:
Service orientation is an important part of the healthcare business. While big corporate hospitals provide service commensurate with charges, small and medium corporate hospitals often collect equally high charges without providing same quality of service. Due to lack of awareness, patients from rural areas patronise the small and medium corporate hospitals, expecting reasonable charges. Unethical practices such as subjecting patients to needless clinical tests are gaining ground. Often, nursing homes direct patients to a particular diagnostic centre for clinical tests, which may or may not be necessary, for a fee. The service quality of public healthcare institutions continues to be erratic.
- Industry support:
The healthcare industry, particularly corporate hospitals, needs the support of local industries in terms of mandates for employee healthcare, check-ups and tie-ups for reimbursement of medical expenses. Industry can improve acceptance of family welfare services by educating, motivating workers and improving access to medical services. Industries which provide healthcare to their employees and their families can extend these facilities to the people living in the vicinity of factories, especially when they are located in under-served, semi-urban and rural areas. Smaller industries could form a cooperative group for providing health and family welfare services in collaboration with the government.
- Research & Development:
In the healthcare industry, the use of advanced techniques helps attract new patients. The medical research, focusing on diagnosis and treatment of various diseases, is supported by the Indian Council of Medial Research through its research institutions, medical colleges and teaching hospitals. Although a few corporate hospitals are active in clinical trials, biotechnology and genetic studies, research in corporate hospitals is focused on mastering advanced treatment techniques. Centres of Excellence on various facets of semiconductor technology e.g. system level integration/system on chip, application specific processor design, low power IC design, and icro electromechanical systems applications development with a view to enhance
microelectronics usage, power devices, III-V compounds, and high speed testing are being developed.
- Availability of skilled professionals:
The success of healthcare industry is largely driven by skilled professionals. Most corporate hospitals are recruiting super-speciality physicians and surgeons on regular/part time basis to attract patients. Furthermore, the corporate hospitals are deputing these specialists to rural areas on specific days to boost business prospects. The corporate hospitals are also recruiting competent nursing and paramedical staff. The support to basic and applied research, technology and manpower development at academic institutions, R&D laboratories and industry covering various facets of semiconductor technology including discrete devices, integrated circuits, CAD, software tools, capital equipment and others are continuing.
- Energy, transportation, and information infrastructure:
Proper infrastructure such as roads, power, water and communications enhance the prospects of healthcare institutions, particularly corporate hospitals. The proximity to bus, railway stations and airports improve the competitiveness of corporate hospitals. Information technology and telecommunications, for instance, have become crucial determinants of service quality. The corporate hospitals, however, play a limited role in infrastructure. The policy initiatives of government largely determine the quality of infrastructure.
- Public Private Partnership (PPP):
The model in which a public authority contracts with a private company to build or run a hospital is, inevitably, seen mainly in countries with national health services. The delivery of healthcare is changing rapidly, partly in response to altered demands on healthcare systems, such as shifting patterns of disease and rising public expectations, and also in response to the opportunities offered by new technology. PPP as a tool to improve quality and increase quantity of services to consumers is positive. The increase in public benefits may be either an increase in capacity to deliver or an increase in the quality of the delivery and also assist to improve identification of adequate investments in healthcare.
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