situational analysis in health care industry
TRANSCRIPT
Situational Analysis
By: Dr. Abhishek Tiwari
Situational AnalysisAmerican Marketing Association
“ The systematic collection and
study of past and present data to
identify trends, forces &
conditions with the potential to
influence the performance of the
business & the choice of
appropriate strategies”Invented by Population council
Researchers in
Kenya 1989
Situation Analysis in Healthcare ?
Describes & analyses the situation regarding the health status & health services of area e g : a Village ,District or State Assess the extent to which health services address health needs what’s happening by identifying factors facilitating or preventing progress of Health also prioritises problems and needs so the plans and strategies can address themDistrict Health Plan and Report
A Typical Planning Cycle1 ) Situation Analysis2) Priority and objective setting3) Option appraisal4) Task setting5) Monitoring and evaluation
Importance
First step of a Planning cycleEffective management tool Considers both + / - potential
outcomesForecasts changes internal & externalRefreshes strategy & tactics of your
marketingCompiles Analyses & Evaluates Influences
ImportanceApplied to corporate,
Govt. Hospital ,clinicsIdentifies gaps in Healthcare System
monitoring , evaluation tool of Health
Servicescontributes to district
health information systemDistrict Health Plan &
District Health Report“Understanding where you are today is
fundamental to achieve your future goals”
HOW TO CONDUCTStep 1: Determine a framework
Step 2: Identify what information
is already available
Step 3: Identify what information
is still required
Step 4: Collect the required
information
Step 5: Compile and write the report
Step 6:Distribute & disseminate the report
Framework-example1.Assessment of the health district
Geography / Demography/Socio-economic profile
2.Health Status and Problem
3.Progress to Implement District Health System
4.The Management of Support Systems
Finance/transport/drug ,vaccine supply & distribution
Communication/Health information/HR
5.Public Health Sector
Facilities {Hospitals/Clinics/CHC} Referral system
6.Other Care Providers :Private/ Ayush /NGO
7.Assessment of Key Programmes
8. Other Sectors which Impact on Health
9. Summary of Key Health Problems and Conclusion
Situational AnalysisHealth Care Industry
Hospital ,
Nursing Homes,
Clinics,
Health Insurance Company,
Pharmaceutical industry,
Biotech Company
Application of business principlesStructure + Forces = Strategy
5 C AnalysisSituational analysis can be conducted by three methods
1. The 5Cs Analysis
2. Porter five forces analysis
3. SWOT analysis
The 5 C Analysis Earlier “ 3 C Analysis ” Extension to 5 C adds Environmental analysis Market based sectors of Health care
1. Company : Objectives , strategy & capabilities mission &
Goals , current position
5 C Analysis2. Competitors :
Position ,Goal ,mission ,strategy & resources Capability in industry & potential threats Identify type Direct / Indirect/ new entrants
Get prepared to compete
3. Customers : Understand needs
(size ,potential ,demand) Advertising & Motivation
5 C Analysis4. Collaborators : Commitment (new ideas more business)
Agency/Supplier & distributors ,relationship important for growth. Partnership shares assets & liabilities
5. Climate : Political & legal : low public high private sector Economic : increase in upper middle class Socio cultural : life expectancy/lifestyle/urban shift Global & Technological : Medical tourism &
preventive health check up , diagnostic tests
Situational Analysis
• The PEST Analysis report “very good opportunity for
private players in healthcare. Growing population with much deeper pockets and low government participation has lead to higher demands where people are willing to pay high costs for proper medical care.”
Porter’s Five Forces Analysis
Porter 5 forces Analysis1) Threat of new entrant: Pharmaceutical capital for R & D of new drugs Insurance many guidelines be able to attract physicians to their network best defence is target high value care, product differentiation , senior specialists greater emotional intelligence, while younger have latest techniques Develop brand quality & create barriers
for new entrants
Porter 5 forces Analysis2) Bargaining power of buyers/patients: Very limited power , exceeding demand Sick will take treatment in any economy
Medical tourism reduces dependency on local patients
3) Bargaining Power of Suppliers:New drugs and the latest medicationsHospital need pharmaceutical companies and
they need the hospitalsShortage of specialist , large power
Porter 5 forces Analysis4) Pressure from Substitutes:Drug industry affected by substitutes , if patents lapsesInsurance companies : not really affectAlternative medicine which treat primary care
problems . Filling of vacant post by untrained staff
5) Competitive Rivalry:More for Drug & Insurance sectorless amongst hospitals
Porter 5 forces AnalysisDrug R & D ,one gets patentMore : competitors are of equal size & power , same geographical area & poor differentiation
Summary : Report ,strategy to maximise the strengths
eg targeting value in health care , Focus on
Preventive methods than control to reduce the
cost and improve quality
SWOT ANALYSIS
SWOT ANALYSIS Mainly used for the
health care GOAL “build on
strengths”
& “reduce weaknesses” Assessment of Health
status monitoring & evaluation
of health programmes to prepare
the district
health plan
Opportunity•Organization & tech development•Participation of local leaders•Coordination with NGO•Improved safety system•Telemedicine for speciality•Revised measure , indicators
Weaknesses•No speciality, primary service •Lack of funds•Unequip lab , no instrument•Loss of key staff,understaffed•No transport, off located•Patient load: lifestyle•Lack of technology
Strengths•Local & creative approach•Experienced physician •Trained ,adequate staff•Resources : lab,instrument•Central location•Strong commitment & funds•Transportation
Threats•No Govt budget, inflation•Workforce strike, nurse,doctor•Small semi urban nursing home•Patient prefer them•Loss of alliances , NGO•Misinformation•Competitors has new products
S W
TO
Weaknesses•No speciality, primary service •Lack of funds,salary•Unequip lab , no instrument•Loss of key staff,understaffed•No transport, off located•Patient load•Lack of technology
Opportunity•Organization & tech development•Participation of local leaders•Coordination with NGO•Improved safety system•Telemedicine for speciality•Strong referral system
S OStrong commitment
Availability of Funds
Central location
Participation of local leaders & NGO
Improved safety system
Strong referral system
Positive factors
SWOT ANALYSIS OF A RURAL HEALTH CENTRE
W TLACK OF FUNDS , NO SALARY
INCREASED PATIENT LOAD
.
OUTDATED EQUIPMENT & TECHNOLOGY
WORKFORCE STRIKE (NURSE & DOCTORS)
.
PATIENTS PREFER NURSING HOMES
.
COMPETITOR HAS NEW PRODUTS
Negative factors
SWOT ANALYSIS OF A RURAL HEALTH CENTRE
SummaryImportant areas of progress and development in the district over the previous year.The most important and urgent health problems of the district.An indication of how these priority problems will be addressed.Finally there should be an honest assessment of the strengths and weaknesses of the
district that lay out the challenges for the future.
Situational AnalysisReferences
1) A Guide for Health Districts in South Africa
2) NRHM district health report , 2010 Aurangabad
3) Survey by Tim Size at RWHC with eleven “rural health expert respondents”
4) ZYNX Health solutions
5) EPMG emergency physician medical group
6) Targeting value in health care ..by . Corey scurlock
7) www.healthcaresuccess.com
8) Analysis of Fortis hospitals 2010