Healthcare management is about evaluating the complexity of process and plan or strategizes accordingly, but most of the healthcare companies in India rely on short term successes and avoid strategic operations. However, many of the industry giants applied strategic management approach and it has led the institution with sustainable long term benefits. Strategic management in healthcare organization involves many individuals, from different target customers to the board of directors and everyone has a significant role to play. The company focuses on some objectives to enlighten the strategic planning like, Explaining the benefits of strategic healthcare planning, covering the aspects of market trends, analyzing the planning ability of employee, explaining the concept of strategic management to every individual in the organization. A basic fundamental strategy plans its benefits and the role of modern director in strategic management helps in understanding the healthcare organization insights.
Strategy Management in Indian Healthcare
The Indian Healthcare Organizations were freestanding, not for profit type of institutions initially. The concept of healthcare strategic management is very recent and employed around 1990. The organizations realized that the adaptation and evaluation of strategies is the only way to have a greater level success. Hence, the healthcare companies involved a better framework companies and understanding the key issues in change management. Healthcare organizations immensely strategized about many aspects including cost leadership program, the program produced efficient chain of supplies and reduced cost of the product.
The rise in financial viability for organization CEO has been important aspect for healthcare management changes. The term, financial viability stands for highly impacting aspects like current mandate and rulings, pollution health management, quality of scores and personal shortage. The increasing population generated economic growth of sector which has eventually increased infrastructural standards of the organization. The viability also encouraged privatization that resulted in qualitative service and progressive management developments. Currently, around 70% of urban population and 63% of rural population prefer private organization over governmental healthcare centers as the private centers emphasizes on modernized management skills. The private hospitals accounts for 74% of healthcare expenditure in country. The total viability of country has risen to 16.5% in past 10 years. The strategy managing Indian healthcare valued around 1.5 billion USD in November 2017.
Differentiated and Diversified Business Approach
Private organizations are trying to differentiate themselves from others. Many of the well-known organizations collaborated with government to provide multiple healthcares under the roof. In 2016, many institutions formed base camps with the government inspired organizations to provide healthcare facilities to rural areas. Some giant organization developed free of cost services in rural area as well. However, organizations eyeing on global expansion preferred brand collaborations. The diversified approach of collaborating with different healthcare organizations and offering wide ranges of healthcare products and wellness services with single brand name which has increased the service economy. Thus, the brand credibility has provided the major boost to the business
The Bargaining Power of Suppliers and Customers
The supplier competitors in industry are increasing rapidly. The competition results in a high quality products and timely deliveries. The qualitative suppliers are less in numbers, this affects customer preferences. Customers choose expensive but trust worthy brand products. The Indian healthcare sector is welcoming credible suppliers. Customers can prefer inexpensive government hospital or they buy e-health products. Hence, the customers are getting more bargaining power. This power is also beneficial at some instance as it provides a vital flexibility and efficiency.
Notable trends in Indian Healthcare Management
Health Insurance Penetration: According to recent survey, urbanization in the country is increased by 20% and it increased lifestyle diseases; around 50% of urban population is paying half of their income on in-patient beds. The diseases causing due to high cholesterol, high blood pressure, obesity, poor diet and alcohol are called lifestyle diseases. The number of such health issues is increasing and the management strategies are changing accordingly.
Enhancement of tier cities: The taxes on hospital construction have been relaxed and the government is encouraging private sectors to build tier II and tier III projects. The project stands for supplying the high quality healthcare services to metro cities. The establishment of such developed hospitals is providing substantial revenue. The management medic claim groups like Manipal, Fortis are also investing in such projects.
Emergence of E- Health and telemedicine: The major organizations from the country are adopting the fast emerging telemedicine services. The telemedicine and E-Health portals provide low cost consultation, diagnose facilities and advanced medical facilities by utilizing the high speed internet. This facility has been steamed to remotest areas of the country. The state governments are also adding their contribution by creating healthcare public portals that provides diagnosis policies; recently Maharashtra government has created its healthcare portal
Medical Tourism, an Innovative Management Strategy
The gulf country medical tourists are heading to India as the country provides supreme healthcare solutions with low cost treatments. The Surgeries and treatments are very economic as compare to developed countries. The Traditional Ayurveda treatments, like Yoga, Meditation have attracted European tourists the most. The medical tourism has raised significant revenue. It has estimated around 4.2 billion and it has grown by 27% in past two year. The advantages like strong demand, attractive export requirements, efficient and qualitative solutions have raised the healthcare sector value to 110 USD billion. Thus, it is high time to enter the healthcare management sector.