Propos posal for a Hospital at NCC ground
TABLE OF CONTENTS
1. 2. 3. 4. 5. 6.
7. 8. 9.
Promoter’s Background Objectives of Study Healthcare in India Medical Tourism Scenario Health Insurance Scenario Location Analysis of Pune SWOT Analysis Proposed Hospital Profile Budgetary Considerations
PROMOTER’S BACKGROUND
C.A. Ms Gita Patwardan an NRI presently residing in U.K. has proposed to setup a Multi ultisp spec ecia iali lity ty Hosp Hospit ital al at NCC NCC grou ground nd to cate caterr to the the Popu Popula lati tion on of PUNE PUNE (Maharashtra)
The Group The Group is inter interest ested ed in conduc conducti ting ng a detaile detailed d explorat exploratory ory market market research research and financial feasibility to understand the demand and supply of health care and relevant market opportunities to make a conclusion for the upcoming proposed project in Pune.
The Detailed Project Report comprises primarily of two main parts :
Market Research: understanding the need gap and requirement for a multi specialty
HEALTH CARE IN INDIA
Indian Healthcare Industry to Double in Value by 2012
Rising income levels
Changing demographics
Shift in disease profile from chronic to lifestyle diseases to propel the growth
The health infrastructure across Indian states is projected to grow by an average of 5.8 percent per annum between 2009-2013, taking the total expenditure in 2013 to USD 14.2 billion
Of the 32 Indian states that the report considered, the six states of Maharashtra , Rajas Rajastha than, n, West West Benga Bengal, l, Utta Uttarr Prad Pradesh esh,, Tami Tamill Nadu Nadu and Andhra Andhra Prad Pradesh esh are forecasted to represent approximately 50 percent of the expenditure for 2009-2013 period.
While the Indian healthcare system has grown manifold over the past few years, it has yet not been able to keep pace with the rapid rise in the population. One example of that is the availability of hospital beds in our country —against a world average of four beds per 1,000 population, population, India lags behind at just over 0.7 presently.” presently.” There is a growing need to deal with the issues of urban healthcare infrastructure as rural to urban migration has significantly increased the demand for these services.
Growth drivers
Medical Tourism
Telemedicine
Healthcare services outsourcing
Diagnostic services
Increasing awareness
Medical insurance
Aging population
Growing urbanization
Low cost treatment
Pharmaceutical companies are going online to shorten the development and approval cycle of new drugs.
MEDICAL TOURISM IN INDIA OR HEALTHCARE TOURISM
Indian hospitals are fast becoming the first choice for foreign patients owing to easy access to visa facilities, coupled with the best emerging medical infrastructure, which will help India earn to an extent of US$ 1.86 billion in foreign exchange by 2012. Currently, India's earnings through medical tourism annually is an estimated US$ 821.40 million.
Medical tourism can be broadly defined as the provision of 'cost effective' private medical care in collaboration with the tourism industry for patients needing surgical and other forms of specialized treatment. Jointly facilitated by the corporate sector involved in medical and healthcare as well as the tourism industry - both private and public. India has originated as one of the most important hubs for medical tourism. A nice blend of top-class medical expertise at attractive prices is helping more and more Indian Indian corporat corporatee hospita hospitals ls to lure lure foreign foreign patient patients, s, includin including g patients patients from developed developed nations such as the UK and the US, for high end surgeries like Cardiac By-Pass Surgery or a Knee/Hip Replacement.
A combination of many factors has lead to the recent increase in popularity of
HEALTH INSURANCE SCENARIO IN INDIA
With less than 10 per cent of the population having some sort of health insurance, the potential market for health insurance is huge.
Indian health insurance business is fast growing at 50 per cent and is expected to continue growing at this pace.
The sector is projected to grow to US$ 5.75 billion by 2010, according to a study by the New Delhi-based PHD Chamber of Commerce and Industry.
One-fifth of India's population is likely to have a medical insurance by 2015
Esti Estima mate ted d incre increase ase in consu consume merr spendi spending ng on healt healthca hcare re from from US$ US$ 2,054 2,054 per household in 2005 to US$ 3514 per household by 2015.
In some cases, the Government is partnering with the private sector to provide coverage at a low cost. The Yashaswini Insurance scheme, launched in 2002 in Karnataka by a public-private partnership.
NEED FOR MULTI SPECIALITY HOSPITALS
LOCATION ANALYSIS OF PUNE
Hospitals in Pune HOSPITALS
BED STRENGTH(APPROX)
Budhrani
2 00
Cantonment
3 50
Chest (Aundh)
Ruby Hall Nursing Home
550
ADITYA BIRLA
5 00
Deena Nath Manageshkar
4 50
Sasoon
1 20 0
Total Population( PUNE) Bed ratio (present) Total Beds Required Beds Available Bed Deficit
33 lacs(2009 1.8 10,000(WHO re recommendation 3 pe per 10 1000 population) 6000(APPROX) 4000
Prostate
Positive Factors 81% Literate population Densely Populated 7,214/ Km² Majority of High and Middle income group Good sewerage system Huge scope for further development
Population Population of Pune city city (2009) excluding excluding suburbs is around around 33 Lacs (approx). (approx). Total bed strengths strengths (which includes Private and Government Hospitals Hospitals ) is 6000 approx. So number of beds per 1000 population is 1.8 , but according to WHO standards it should be 3. So we are short of 4000 beds in Pune. And this shortage will increase in future. IT Services sector remains remains a major driver of the economy and jobs created here, Pune's NRI Diaspor Diasporaa and first-ge first-genera neratio tion n of successf successful ul technolo technology gy entrepre entrepreneur neurss are encourag encouraging ing a renaissance of entrepreneurial activity. Pune is emerging as a prominent location for IT for IT and manufacturing companies to expand.
SWOT ANALYSIS Strengths: Pune called Oxford of East, has huge student base. Also it is hub of IT industry, thus we expect high employer base utilisation of insurance an hospital services.
investments Weakness: Acute shortage of skilled doctors and trained Para-medical staff and investments required to uplift the current status of the healthcare.
Change gess in demo demogr grap aphy hy and and soci socioo-ec econ onom omic ic mix mix are are alte alteri ring ng the the Opportunities: Chan population's population's disease profile and increasing increasing the incidence incidence of lifestyle lifestyle diseases thus increasing increasing the demand for beds
population growth with lack of proper healthcare healthcare policies, policies, Infrastructure and Threats: Steep population accessibility to the healthcare for all is challenge in the coming days.
PROPOSED HOSPITAL
Logo:
Colour: Red signifies the colour of life and the courage to deal with emotionally disturbed customers
Mission
To serve serve and enrich the quality quality of life life of patient patientss sufferi suffering ng from diseases, diseases, through the effi effici cient ent deploy deploymen mentt of tech technol nology ogy and human human expert expertise ise,, in a carin caring g and nurtu nurturi ring ng
BLISS HOSPITAL MULTI SPECIALITY HOSPITAL
It will be 300 bedded Research Research Hospital which will be accomplished in 3 phases Rationale: - Availability of land Availability of finances Competitors First Phase 100 beds; it will take one and half year to commence the Hospital after acquiring the land….( OCT 2009- MARCH 2010). Hospital + pharmaceutical company tie up( joint venture)
Pharmaceutical company has been investing 75 crores in three phases 25 crores each year into my business. Share of Promoters invested 58 crores in phase 1. Second Phase 100 beds Third Phase
100 beds
3) Gyna Gynaec ecol olog ogy y 4) Paed Paedia iatr tric icss 5) ENT 6) Sex clinic/ clinic/ counsell counselling ing centre centre 7) Rehab Rehabil ilita itati tion on centr centree 8) Psyc sychiatry try 9) Dental 10) Wellness centre 11) Ophthalmology Ophthalmology 12) Medicine Medicine 13) Surgery Surgery
SUPER SPECIALITY
1) Liver Liver Transp Transplan lantt and Dige Digestiv stivee Disease Diseasess 2) Join Jointt Repl Replac acem emen entt 3) Wome Women n and and Chil Child d Care Care
ERP solution
Telemedicine and medical informatics
Decision support system that improves diagnosis and treatment
Healthcare players are establishing ways to give customers easy access to pertinent information
Pharmaceutical companies are moving to speed development and delivery of new drugs
Hospital Pecularities
Micro-processor based implantable in patients.
CPU-driven technology supported by artificial intelligence.
Robotics in OTs
Robotics in Path-labs / Research.
JCI Accreditation:
To stay competitive in the market According to Ernst & young report quality is the most preferred attribute attribute for patients to choose a particular hospital To increase customer satisfaction To cater foreign patients.
Floor Wise Design: Basement:
10 OPD’s Diagnostics, Lab
Ground Floor:
Lord Ganesh Temple
Library
Third Floor:
General Ward Delux- Rooms Suite
Fourth Floor:
Tele-Medecine Department Conference Hall Yoga Area Ayurvedic Department
ESTIMATED MANPOWER
Nurses in the Hospital Nurses in I.C.U 12
Department of Laboratory Medicine Section Head 1 Number of Technicians for fairly
Physiotherapy Physiotherapy Department Physiotherapists 1 Physiotherapists 0 Aide/Junior Trainee Senior 0 Physiotherapists Total 1 Physiotherapists Pharmacy Department Pharmacists for 1 Indoor Issues Pharmacists for OPD 2 Issues Junior Pharmacists 0 Senior Pharmacist 0 Pharmcy Aide 0 Chief Pharmacist 1 Total Staff in 4 Pharmacy General Maintainence M i d 9
barium investigations, HSG etc. Relievers
1
Department of Ultra Sound
Number of Technicians
2
Attendants for Ultra Sound
4
Releivers
1
Department of ECG & 2D ECHO
Technicians with Echo
5
Relievers
2
Special Services Blood Bank
0
Health Check Up
1
X-Ray Infection Control Nurse N Cli i l S i li
0 1 1
Laundry Staff Relievers Total Total Laundry Laundry Staff Staff Shift Supervisor / shift
7 2 9
1
Housekeeping Department
Primary Se Secondary Te Tertiary
Staff in Housekeeping Total Housekeeping Staff : (Including 30% Relievers)
0 0
Total Manpower required in Hospital 315 :
COMPETITOR ANALYSIS:-
Deenanath mangeshkar Hospital
0 0
77 100
Ruby Hall Clinic
Accident and Trauma Care Accupressure Clinic Anaesthesiology Button Hole Surgery for Gall Bladder removal Blood Bank Cancer Center with facilities for Radiotherapy, Surgical Oncology and Chemotherapy Cardiac Center Chest Medicine Corneal Transplants with Eye Bank facility Day Care Center Dental Center with laboratory and facilities for Maxillo Facial Surgery and Dental Implants Dermatology Eleven well equipped Operation Theatres including separate Operation Theatres for cardiac and neurosurgery Endocrinology and Diabetology ENT Department Gynaecology and Obstetrics Department with labour rooms I.C.U. / C.C.U. / P.I.C.U. / N.I.C.U.
MARKETING STRATEGIES Communication mix
The aim of this exercise is to establish the brand in the minds of the customers so well that it bec becom omes es the first first name name that that custo custome mers rs recal recalll whene whenever ver discu discussi ssing ng or thinki thinking ng about about healthcare. The product would be heavily advertised before launching and then we would invol involve ve in exten extensiv sivee sales sales promo promoti tion. on. Th Thee commu communic nicati ation on strat strategy egy of prom promoti oting ng and and advertising the brand is as follows: 1. Magazines o
Health
o
General
o
Lifestyle
2. News Newspa pape perr ads ads 3. Hoardin Hoardings gs acros acrosss variou variouss places places in citi cities es 4. Adverti Advertisem sements ents in local local televis television ion show showss
Promotion activities
1. Hoardin Hoardings: gs: Visual Visual hoardin hoardings gs to be place placed d on prime prime locations locations of of the city city to increa increase se visibility among masses. Also we would place hoardings in high density residential areas, industrial areas and on city outskirts. 2. Camps: Blood donation donation camps camps and free check check up camps camps would would be arranged in schools schools and colleges. 3. Event Event Sponsorsh Sponsorships: ips: We would would try to grab attenti attention on of the prospects prospects by sponsori sponsoring ng events such as cultural events, sports events etc. We can even organize marathons. 4. Adverti Advertisem sements ents to be be placed placed on local local and and short short route route buses. buses. Sales Promotion
1. Tie up with Insurance companies companies for devising devising various insurance cover plans. plans. 2. Tie ups with corporate corporate and and educational educational institutio institutions ns for annual annual health health contracts. contracts. Special packages for economically backward patients, senior citizens, maternity package, annual health check up package, package for diabetic patients, physiotherapy package etc. Future Plan
As shown in the above diagram, we will have our fully equipped super speciality hospital in the cities (Tier 2) built and working successfully as envisioned in the current expansion plan. But we would not be able to provide quality health care to smaller towns where a good number of people reside and are in need of such facilities. This would also form a
PROJECT ESTIMATION
Civil Cost
240,000,000
Plumbing Cost
30,000,000
Electrical Cost
60,000,000
Air Conditioning Cost
78,000,000
Miscellaneous Cost
6,400,000
BUDGETARY CONSIDERATIONS Amount budgeted (Rs.) 1. Land cost 15000 Sq.Ft / * 1000 *12
Rs. 20,00,00,000
2. Equipment planning Echo – Colour Doppler Ventilator: 3 Cardiac Monitor (NIBP) 30 Defibrillator: 5 TMT-2 Central Line Oxygen ECG Machine : 10 Pulse Oxymetre : 5 Centralized Monitor Infusion Pump : 10
Rs. 18, 00,000 Rs. 24, 00,000 Rs. 30, 00,000 Rs. 10, 00,000 Rs. 03, 00,000 Rs. 02, 00,000 Rs. 01, 00,000 Rs. 01,00,000 Rs. 01, 00,000 Rs. 03, 00,000
Amount expenditure (Rs.)
Rs. 3,00,00,000 Rs. 6,00,00,000 Rs. 7,80,00,000 Rs. 64,00,000 Rs. 41,44,00,000 Rs. 1,00,00,000 Rs. 74,34,00,000
Plumbing Cost Electrical Cost Air conditioning Cost Miscellaneous Cost Total
Miscellaneous Total Budget Amount budgeted(Monthly)
Amount expenditure(Yearly)
(Rs.)
(Rs.)
1. Salaries NURSES @ Rs. 7000/ *90
Rs. 60,000 Rs. 30,000
RMO @ 15000/*18 Special Services @ 12000/*3
total
Rs. 2,70,000 Rs. 36,000
Rs. 22,64,100
Rs. 20,00,000
Disaster budget
marketing budget Fuel Charges (Ambulance and Generator) @ 35 / * 30* 3 0 *1 2
Other expenses
Rs. 2,71,69,200
Rs. 3,00,00,000
Rs. 31,500
Rs. 3,78,000
Rs. 6,00,000
Rs. 72,00,000
4
Pharmacy( OPD)
Rs. 30,00,000
Rs. 3,60,00,000
5
Pharmacy( IPD)
Rs. 12,00,000
Rs. 1,44,00,000
6
USG( 20usg * 30 days )
Rs. 700
Rs. 4,20,000
Rs. 50,40,000
7
Xray(15 Xrays * 30 days )
Rs. 400
Rs. 1,80,000
Rs. 16,20,000
8
CT (50 CT per month )
Rs. 2,200
Rs. 1,10,000
Rs. 13,20,000
9
lab tests( 100 OPD tests * 30 days)
Rs. 500
Rs. 15,00,000
Rs. 1,80,00,000
10
lab tests( 50 IPD tests * 30 days)
Rs. 800
Rs. 12,00,000
Rs. 1,44,00,000
11
ECG ( 100 ECG * 30 days )
Rs. 200
Rs. 6,00,000
Rs. 72,00,000
Rs. 2,21,10,000
Rs. 26,47,80,00 0
TOTAL
Break- Even Analysis YEAR
200910 201011 201112 201213 201314 201415
INCREASE IN REVENUE*(perce ntage to original) 0%
REVENUE
INCREASE IN EXPENDITURE#(per centage to original)
EXPENDIT URE
PBIT##
NET PROFIT(ASSUMED )
0%
108032800
10%
Rs. 6,67,47,20 0 73421920
19803280 0
15%
Rs. 26,47,80, 000 291258000
87836080
30%
344214000
20%
80096640
45%
383931000
30%
86771360
60%
423648000
40%
93446080
75%
463365000
50%
100120800
21783608 0 26411736 0 29715964 0 33020192 0 36324420 0% Total
* = Increase in revenue is observed because of increase in no. of patients. # = increase in expenditure is observed because of inflation ## = Profit before interest and Tax
Page 33 of 33
104005360 120000000 150000000 200000000
Rs. 76,98,74,240
<-Break even point