Business Plan in using SAAS in Health Care sector to improve customer retention & enhance new customer acquisition for multi-speciality hospitals in India.

1. Submitted by:
Venkatesh K.G
B-Plan – SAAS in Indian Healthcare sector

2. • Hospitals face regular issues with loyalty. Patients switch hospitals, in some cases it is seen that they do it even before the treatment is
completed.
• In India healthcare is plagued with issues &mistrusts.
• Indian hospitals like Apollo ,Fortis and Manipal group have started aggressive expansion / tie-up with other hospitals in abroad.
• Thailand ,Singapore and India are among the top 3 nations inAsia for medical tourism and accounts for 60% of revenue under
medical tourism.
• As observed, cost of medical treatment is cheaper than other Asian nations. So there is high growth prospect in this industry
considering rapid growth of specialty hospitals in India
• Medical tourism in India is growing at the rate of 25-30% in India and expected to reach USD 158.2 billion by 2017. Package pricing
makes it attractive for foreigners because of no insurance coverage for foreigners .
• India has positioned itself as a preferred spot for cardiology, orthopaedics, nephrology which can be very well handled under
package pricing.
• Insurance penetration in India is low which makes package pricing a feasible option for Indians as well.
Procedures United States Thailand Singapore India
Coronary artery
bypass surgery
$70,000 – 133,000 $8,200 $14,000 $7,500
Hip replacement $33,000-57,000 $7,000 $11,000 $6,200
Knee replacement $30,000-53,000 $6,500 $9,000 $6,000
Prostate surgery $10,000-16,000 $4000 $5,300 $3,800
Kidney Transplant $40,000-45,000 $16,000 $20,000 $12,000-15,000
Source: docstoc
Introduction

3. Indian Healthcare Industry
Problem Analysis
Service Provider’sView
Customer’sView
NewTrends & Opportunities Solution In A Nutshell
• Retention of customers
• Healthcare industry is
characterized with mistrust
and unfamiliarity
• Lack OfTransparency –
concerns regarding cost
structure
• Low insurance penetration
• Low penetration in rural areas
• Number of multi-specialty hospitals is increasing due to
the rising middle class population (547M by 2025)
• Hospital chains are aggressively expanding entering into
alliances with foreign institutions
• Cost of treatment in India is low compared toWest. Due
to this medical tourism is growing at a CAGR of 30% and
expected to reach $158 Billion by 2017
• Issues addressed
- Increasing customer
Engagement
• Customized Messages
• Important Dates alerts
• Trend alerts
• Booking slots
- Pricing Dilemma
• Cost transparency
• Packaged Pricing
• Efficient Pricing will help
customers to select
combination of services from
an array of available services
• It will help the customers to
understand what services they
are paying for and will help the
hospital administration to
evaluate pricing methods.
Factors In Favor
• First mover advantage
• Increasing Medical tourism
• Drift towards packaged pricing
• Possible tie-up with more multi-
speciality hospitals

4. When not to use package pricing:
• This can be used for ailments not having much complications or
we can not assess possible complications(e.g.: AIDS, Cancer, Brain
surgery)
•Patients above a certain age group
•Patients having several complications at the time of admission
•Accident victims
•Patients who have undergone certain major surgery/ailments like
cancer, Neuro-surgery,
When to use package pricing:
• Preventive health check-up.
• On ailments where the hospitals had good success record and
didn’t face much complication at the time of treatment.
• Bundling maternity with pre and post care along with child
vaccination which is calculated after 5 months of pregnancy to
assess the number of children and growth of the child to assess
possible complication.
Benefits:
•Package pricing is being followed in many foreign nations for patients not covered under insurance .If introduced , we can target many of them because they do not have
insurance coverage.
•Better customer retention / engagement
•Can tap more customers by giving them the flexibility of various services and clears any ambiguity with them
•Better utilization of hospital resources.
•Number of multi-specialty hospitals is increasing and big players have started acquiring / establishing their branches in many cities.This enables higher customer
retention
Product/Service Description

5. Domestic patients:
• Enables better transparency for the customers and eliminates possible ambiguity.
• Opens up service in multi-speciality hospitals for higher volume of customers based on their affordability
• More suitable for customers not having insurance coverage.
• Customers will not miss out regular consulting /check-up.
International patients:
• Package pricing is followed in many developed nations. Customers from these nations would prefer this because of higher flexibility.
• The patients can have pre/post operative treatment in their city with the branch of hospital they had treatment or their tie-up in their city.
• Majority of medical tourism is from economical weak nations like Nigeria, Bangladesh and other nations.According to IITTM, there major concern
is lack of transparency in treatment expenses. Package pricing addresses this issue.
• Post operative care/ follow-up after the patient returns to their nation was another concern in the survey conducted by IITTM. Our system
addresses this issue by sending periodic messages regarding precautions to be taken and follow-up tests in their nation.
Customers For Hospitals (Indirect customers)
Hospitals (Direct customers)
• Efficient cost structure under package pricing to create synergy for hospital and their patients.
• Higher customer retention by having customer engagement.
• Can focus only on core activities and build upon it outsourcing non-core activities to us.
• High potential to attract more patients because of clarity on the whole treatment expenses.
• Eliminate various issues faced by foreign travellers.
Customer Benefits

6. Future Considerations
•Our website can have tie-up with airlines and offer special discounts to the passengers.This enables higher travellers in the selected airlines and
more people using our service.
• We can followThailand strategy in medical tourism – clubbing treatment along with local tour.This can be tapped based on the patients health
condition, his/her travel plan .
• In the survey conducted by Indian InstituteOfTourism andTravel Management, it was found that medical tourists had issue with non-hospital
expenses during their stay in India. So we can encourage hospitals to have tie-up with home-stay near hospitals and include that in package pricing
to bring better visibility to customers.
Refinement
•Refine the plan thoroughly to see if there is any loopholes
Initial Deployment
•Develop the model engaging only 3-4 developers, test engineers and propose the business plan to a mid range multi-speciality hospital
incorporating:
• HRM
• customer retention module
• Assist hospital in allocation of resources based on our analytic tool. (Can be offered complementary)
Capability Expansion
• Higher more employees across divisions and make the service to scale to target higher scale of service
Expansion
• Start approaching other multi-speciality hospitals explaining past success and capability in incorporating high volume service
• Incorporate all the intended features and demonstrate all the features and the cost advantage to them.
Business Strategy

7. Marketing
Direct Sales InfluenceThe Influencers
Hospitals Segmentation
Urban Government
Semi-Urban Multi-Specialty
Rural Stand Alone
• Presentations
• POC’s
• Trial Runs
• Surveys for the patients
• Feedback loops
• Show the results to the
hospital administrations
• Educate the patients
• Health camps
• Presentation to big players
like Apollo
• Conferences with hospital
Administrators
• Social Media – Facebook ,
Twitter
• Stories onYouTube

8. Cost Analysis– Initial
AWS
Cost/Hr $ to Rs. No of Hr Day
s
Total
$0.56 60 24 365 Rs. 290304
Cost/Mon $ to Rs. No of Mon Data Total
$0.08 / GB 60 12 500 GB 28800
Storage
SG & A
Technical Resources Human Resources
No. Avg. Salary Total
5 Rs.3.6L Rs.18L
No. Avg. Salary Total
1 Rs.8L Rs.8L
SG & A
Rs.5L
Total
Approx. Rs.35L

9. Revenue Model – ExampleApollo
• Pricing model is a mix of fixed & variable pricing
• Depends on the number of patients served by the
customer
Fixed Pricing - Drivers
• Number Of Patients
• Customization
• Service
Variable Pricing - Drivers
• Number Of Patients
• Frequency of usage
• Type of service
Return On Investment – Example Apollo
• 200 foreign customers per day for Chennai
Branch –Target is to get 50% at least to use
the system.
• Already existing database of 25 million customers – Even
if 5% of them use the service then – 12,50,000 messages.
• 3,00,000 people undergo surgery at Apollo per year.They
need post-operative care.
• Adding these 3 segments we have a customer base of
approx. 1.6 million patients.
Fixed Pricing Variable pricing
Rs.20,00,000 Rs.2 per message
Breakeven @ (35,00,000-20,00,000) / 2 = 7,50,000 messages
Profit = 2 * (16,00,000 - 7,50,000) = Rs.17,00,000
ROI = 17,00,000/34,00,000 = 50%

10. • Majority of hospitals in India, hospitals maintain all divisions.A few multi-speciality hospitals have
started outsourcing non-core activities like catering/canteen .
• First mover advantage
• Many giant IT companies like Infosys,TCS, Accenture provide cloud based service but at higher cost
and focus on higher margin international contracts
• Competition against domestic players likeTrimax,Tulip, CMC and other players however ours is a
niche service.
• Competitor in this business domain may emerge in future.
• Should be aggressive in our service by providing multiple services at a competitive price
• Add more features to the system periodically.
• Expand further to reach the customer end to have control on the complete channel from customer end
to the hospital to increase customer base.
Competitor Analysis