Situational analysis in health care industry

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