CRM Practices& Interactions in Health care Industry

CRM Practices& Interactions in Health care Industry

Submitted to:Ms. Supriti Agrawal

LecturerDepartment of Marketing

Submitted by:Garima Sharma (108H21)

Nirdosh Sawhney (108H31)

In Partial Fulfillment of Award of Master of Business Administration

AMITY BUSINESS SCHOOLAMITY UNIVERSITY UTTAR PRADESH

SECTOR 125, NOIDA - 201303, UTTAR PRADESH, INDIA 2009

What Is Customer Relationship Management?

CRM stands for Customer Relationship Management. It is a process or methodology used to

learn more about customers' needs and behaviors in order to

develop stronger relationships with them. There are many

technological components to CRM, but thinking about CRM in

primarily technological terms is a mistake. The more useful way

to think about CRM is as a process that will help bring together

lots of pieces of information about customers, sales, marketing

effectiveness, responsiveness and market trends.

CRM helps businesses use technology and human resources to gain insight into the

behavior of customers and the value of those customers.

Advantages of CRM

Provide better customer service

Increase customer revenues

Discover new customers

Cross sell/Up Sell products more effectively

Help sales staff close deals faster

Make call centers more efficient

Simplify marketing and sales processes

INTRODUCTION

Faced with mounting pressures to contain cost and mandates to adopt continuous quality

improvement process, the health care industry is actively engaged in relationship marketing and

partnering activities.

Customers relationship management (CRM) which has overriding significance for any business

is no less significant for hospital services (Salam, 2000). Hospitals are most important elements

in any health care delivery system. A hospital plays a major role in maintaining and restoring  the

health of the people.

Care of the sick and injured, preventive health care, health research, and training of medical and

paramedical staff are general broad functions of a hospital. It involves to the outpatient and

inpatient hospital services and on many occasions emergency medical services. An important

resource in a hospital is a human resource. This should be particularly emphasized. This should

be particularly emphasized in the content of a hospital since relationship of medical staff plays

important role in treating patients - the hospital customers.

In health care, CRM practices are essentially patient - focused strategies that involves effective

management of hospital interface and interaction with patients. Effective CRM practices in a

hospital  may mean providing services related information to a patient very quickly. Responding

to the patent appointment and an admission requests promptly, dealing with patient queries and

complaints expeditiously, exercising all kind s of flexibilities in serving patients to the patients.

LITERATURE REVIEW

The relevance of relationship marketing in health care has been widely recognized (Cassidy

1993; Dunn & Thomas 1994; Narduetal 1994; Macstrainc & Denning, Paul; 1986; Paul; 1988;

wagneretal (1994) discussed the relevance of relationship marketing programs, integrated

marketing communication strategy and data base marketing for developing a favorable image

leading to improved hospital  performance. Based on Demming's principles of  total quality,

Doyle and Bondrau (1989) advocated hospital supplier partnerships as a means to improve

productivity, to control cost and to improve quality of care. They suggest that long-term relations

with suppliers based on trust, service and effective coordination could lead to efficiency and

improved performance 

Dunn & Thomas (1994) draws clear distinction between transaction selling and offering

partnership solution to customer problems and advocated partnering with customers with a

hierarchy of corporate buying - selling model.

Several marketing practices that attempt to establish, develop or maintain cooperation &

collaboration with customers & other marketing providers are included under the general rubric

of relationship marketing.  This include after marketing activities (Voura 1992) one to one

marketing (Pepper & Rogers 1994) membership programs (including frequent buyer incentives)

cross - distribution arrangements, cross - selling co - production, co -  branding, channel

partnership logistics sharing, special supply arrangements (including special sourcing and JIT

arrangements) business alliances, data base marketing etc., (Sheth & Parvatiyar 1995)

CRM IN HOSPITALs

It is the duty of the hospitals to make the patient and relatives understand that they are providing

a good treatment. These facts demand hospitals to have a well-planned Customer Relation

Management (CRM) programme.

The customer relationship programme in a hospital has two wings. One is the customer care

activity when the patient gets treatment in the hospital as an in-patient. The second is customer

care after discharge. The customer relationship management during the in-patient period,

requires care in two major things. One is the human aspect while second is the procedural aspect.

Here we are assuming that the quality of the treatment given by the hospital is good. Similarly,

the post-discharge customer care management also has two important things. First, the

maintenance of the records for each patient and second, the regular interaction with the patients.

Both are complementary to each other.

Customers in a hospital

Customer can be defined as the recipient or beneficiary of the outputs of work effects or the

purchaser of products and goods. The types of customers in a hospital can be defined as follows:

Patients are those persons who come to the hospital for treatment and to avail the facilities

rendered by the hospital.

Attendants are the accompanies of the patients or the visitor who come to visit the patient

during his/her stay in the hospital.

Clients can be the employers of companies who refer their employees to a particular hospital

on emergency. They can also be the doctors who refer their patients to a particular hospital in

certain contexts.

Customers are presently healthy to avail the benefits offered by hospital in respect of health

packages and insurance schemes etc. The present study is related to these customers.

In Patient CRM

The most important issue in the ’in-patient’ CRM activities is the human aspect. Which means

that every employee in the hospital, who is interacting with patients, should show real care and

concern in his words and deeds in dealing with patients. All the employees, right from the chief

doctor to the ward boy should understand that it is their duty to ensure customer satisfaction.

The employees should be given proper training in these regards. Besides, the employees should

ensure that the patient develops faith in treatment given in the hospital. Patients should be made

to understand that the hospital is doing their level best to cure him/her.

The second thing is the procedural part. The hospital should have well defined procedures for

activities. The employees should be clear about the procedures and the same has to be instructed

to the patients whenever needed. This will help the patients in avoiding hassles. For example,

one of the hospital has displayed the following chart in various places inside the hospitals. It

may be a simple thing, but such chart helps the patient understand about macro level procedure

for treatment.

Post Discharge-CRM

The most important thing in the post- discharge CRM activities is ‘maintaining database’.

Traditionally hospitals expected the patients to maintain records. But in this competitive market,

the hospital should also maintain the records of the patients on its own. They should maintain a

computerised database of each and every patient in detail. This is important in the hospital, as

the patient generally need to visit the hospital regularly. This database will help in the other

CRM activity of the post-discharge period, i.e. ‘maintaining relationship with the patients.

Let us see how it helps. For seeking treatment for , even after getting-discharged from the

hospital, the patient needs to come again for further treatment or check up at regular intervals. If

the hospital maintains a database, it can send reminders to the patient one-week before the re-

visit date and to get the confirmation that the patient would be coming. Besides, the hospital can

send greetings to the patients on birthdays and anniversaries. This will make patient feel special

and the hospital cares for him.

Besides, the database will help in understanding the profile of patients who are visiting the

hospital.

The hospital can list out the geographical areas from which most of the patients suffer from , the

kind of from which most of patients suffer, the stage in which they come, most important

referral sources, number of insured and non-insured patients etc.

One of the most important activities in the post-discharge CRM is creating ‘ Rehabilitation

Centre’. There are lots of social insecurities that are attached with . For example, a woman

suffering from breast may loose her breast as part of the treatment. All these people feel a sense

of social insecurity. A club can be formed for the patients of the hospital to nullify the insecure

feelings.

This club would contain patients suffering from and the people who have already been treated.

All these people can meet from time to time at a place where everything would be organized by

the Hospital. The patients who have already been treated may give moral support to the patients

undergoing treatment. Besides, the club would employ a psychiatrist to counsel the patients.

Doctors can help clear some of the myths in the patient’s mind which will help not only in

retaining the existing patients but also getting favourable word of mouth.

Essentially, a CRM would include systems of staying in regular touch with your customers. You

may need to regularly send them cards, gifts; etc .It will also include inducing the past patients to

participate in activities being carried out by your hospital for social causes. Having feedback

forms filled during the discharge hour of the patient is one useful CRM exercise. Suggestion

boxes and patient satisfaction surveys can also be used.

Some examples of CRM practices in hospitals

Homeocare International (HCI):

A a chain of super speciality Homeopathic clinics founded by a group of committed and

dedicated doctors with decades of rich experience, excellence and expertise in treating various

diseases. Homeocare International is the new trendsetter in Homeopathy. The doctors are highly

qualified, gold medalists and M.Ds using world-class techniques, latest advances, hi-tech

technology and sophisticated software for the diagnosis and treatment of the diseases without

any side effects. Our advanced techniques in Homeopathy had been tried, tested and retested by

millions of fully satisfied patients nationally and internationally.

It is the first clinic having a customized patient database, which contains patients medical

history and treatment details. This information is accessible to all our clinics through a

network. With this facility patients can discuss problems with our doctors from anywhere

in india or abroad and can get his medicines by courier any part of the world.. This

facility ensures continuous treatment without break which is a must for desired results.

World's first cyber clinic with individual case discussion by group of super specialist

doctors in that particular disease.

Fortis Hospitals:

Fortis Healthcare has a major presence in North India with a network of world-class hospitals. In

each of our facilities the ultimate focus of our services is the health and happiness of people, our

patients and their near & dear ones.

Patients experience this sensitivity whether you are an in-patient attending an OPD or simply

accompanying a family member.

In the patient-friendly environment in Fortis hospitals, the layout of departments has been

planned so as to save patient time and minimize in-patient movement.

The Hospital Information System (HIS) and Electronic Patient Record (EPR) instantly provide

patient history details and latest test results to the desktop of the Fortis Healthcare specialist you

are consulting, saving valuable time.

The welcoming guest relations officers and counselors at the Fortis hospital assist in accessing

the services- even such conveniences as the cafeteria, ATM or prayer room.

There is a section on the website which provides helpful information for visitors and also

highlights some of the special services available to our patients and their families.

The expanding Fortis Healthcare network ensures accessibility to large sections of the population

and ease of medical information transfer (Electronic Medical Records). The network has the

convenience of outpatient medical services and diagnostic testing all under the same roof. Our

facilities are built with our patients in mind. Ease and convenience for the visitors and patients

are incorporated into each facility we design.

GNRC hospital Guwahati:

GNRC relationship plan (GRP) was introduce in December 2000. This scheme announced that

each rupees spent at GNRC was to be counted as a loyalty point. For each point so earned and

accumulated the patient would received 5% incentive price on  his / her next billing. The loyalty

points were to be freely transferable and redeemable  at any time. The loyalty incentive coupons

were landed out while the bills were settled in addition a computerized record was also kept  of

these customers to generate periodical Statements.

Special supply and delivery arrangements as just in time supply preferred vendor programs

membership in healthcare networks integrated delivery system, cross, selling, Mutual referral of

service and health care providers

The GRP of GNRC hospitals encouraged word of mouth referrals two. Thus if GNRC patient

referred the hospital to his or her friends/relatives, he or she earned 200 points that could be

redeemed at the time of payment/settling the hospital bills. Each suggestions given by the GNRC

guests/patients was also rewarded with an incentive worth 50 points. The objective of the GRP

was to link pricing with relationship. It was to encourage repeat grist's encourage patients to

recommended other friends and relatives induce more referrals and to thank the existing

customers for their percentage.

When hospitals are interested in leveraging the resources of their partners they may engage in,

joint marketing/training programs, joint product/process development cross distribution

arrangements, logistics/facility sharing, co-providing services, joint ventures and alliances.

Friends of GNRC (FOG) scheme health care providers are dependent on the referral feed and

support of general physicians (GPS). It is true for the word and India, where 30 to 45% of health

care demand comes firm referrals. GNRC received on an average 40 to 50% patients

recommended by the general physicians and the of city doctors through out northeast. A majority

of the referring doctor and physician received incentive called outs from most of the receiving

hospitals as finders fee. Their referrals to a supper specialty hospital were more often based on

the monetary considerations while the lure of incentives are cuts prompted the general

physicians, primary health care centers and nursing homes to refer to a super specialty hospital,

many of them had a genuine anxiety as well.

A typical Hospital Management System (HMS)

A typical Hospital Management System (HMS) is for computerizing the working in a hospital.

The software takes care of all the requirements of an average hospital and is capable to provide

easy and effective storage of information related to patients that come up to the hospital.

It generates test reports; provide prescription details including various tests, diet advice, and

medicines prescribed to patient and doctor. It also provides injection details and billing facility

on the basis of patient’s status whether it is an indoor or outdoor patient. The system also

provides the facility of backup as per the requirement.

Conclusion:

India is witnessing an era where new hospitals are being built at a pace like never before. There

are exciting challenges that these hospitals are facing while they are being commissioned. One

daunting task that every hospital, new or old, small or big, is facing today is the task of

marketing itself.

It is rather unfortunate that almost all these doctors had a dismal marketing strategy, if indeed

they had one. For the most part, they were not even aware that a marketing strategy needs to be

crafted. While millions are spent upon creating a product called a hospital and so little is done to

promote them in a professional manner. The people who offer this product are are very well

trained in their profession. But what is pitiable is the way this product called ‘hospital’ is

packaged and marketed.

Bibliography:

The following websites were consulted for the topic:

http://www.expresshealthcaremgmt.comhttp://www.indmedica.com/journals.phphttp://www.healthmgttech.comhttp://www.daniweb.comhttp://www.antya.comwww.fortishealthcare.com/http://www.iisjaipur.orgwww.indianmaba.comwww.homeocare.in