Supply Chain Management in Speciality Hospitals

CONTEMPORARY CONCERNS STUDY - PROPOSAL

TITLE OF THE CCS

Supply Chain Management in Speciality Hospitals

NAME OF THE GUIDE

Professor Jisnu Hazra

Operations and Control

NAMES & ROLL NUMBERS OF STUDENTS

1. Akshaya G - 1011078

2. Amal Kiran - 1011079

NEED FOR PROPOSED WORK

Healthcare supply and value chain management is an emerging area in service sector supply chain management. Effective supply chain can result in an improvement in clinical outcomes, cost containment and reduction, and also greater safety. Hence the need to build an effective supply chain in the health care sector.

Healthcare industry in India is on the brink of transformation due to the increasing propensity to pay, higher incidence of chronic diseases and the increased awareness about wellness.There is therefore an emergence of new models of healthcare delivery such as day care hospital that perform surgeries that do not require overnight stay, no-frills hospitals like Narayana Hrdayalaya, Telemedicine, Single Specialty Hospitals etc.

Single Specialty Hospitals (SSH) offer treatments in a particular therapeutic area, providing end to end services. They may also provide personalized care in their core area. Some focus areas that have specialty hospitals catering to them include eye care, ephrology (kidney & dialysis), cardiac and cancer. The single focus area enables the hospitals to reduce the capital expenditure requirements and also optimize operations to achieve lower costs and higher margins.

Healthcare supply and value chain management is an emerging area in service sector supply chain management. Effective supply chain can result in an improvement in clinical outcomes, cost containment and reduction, and also greater safety. Hence the need to build an effective supply chain in the health care sector.

Sri Jayadeva Institute Of Cardiovascular Sciences & Research (SJIC&R) is one such specialty hospital located in Bangalore. The institute has carved a niche for itself as a provider of quality care in cardiology. The hospital has 540 beds and is among the largest in the country. It caters to around 2,45,000 patients per year. Due to better mobilization of internal resources and fund collection from various donors, cross subsidization, Jayadeva has made it possible for the needy to receive quality treatment at subsidized rates. Jayadeva hospital has also undertaken several innovative measures such as development of medical tourism to cater to a larger group of people. Thus, Jayadeva Hospital provides a good case to study the supply chain management in a specialty hospital.

OBJECTIVES

* To identify the factors that govern the supply chain in a hospital service industry with special attention to specialty hospitals like Jayadeva

* To identify challenges in the supply chain management at Jayadeva and suggest improvements that empowers them to provide better services to its customers

BRIEF DESCRIPTION

For the purpose of this study we aim to study the various factors that govern that govern the supply chain management in a hospital industry.

For the purpose of this study we aim to research IBHs that underwent splits from 1950-2009. The rationale is to include IBHs both pre and post liberalization, to understand the changing environment in which these IBHs operate and the influence that this evolution has had on the sustenance of IBHs as a single entity. Most of the splits pre liberalization started from the 1950s and hence we have taken that as our starting time period. We propose to select groups diverse in their size, industry, geographic location and ownership pattern as this will give us a broader picture and will also let us explore factors that transcend any single factor that might lead to business splits and their subsequent operations.

The reasons for the splits will be analyzed under two broad categories - family dynamics and changes in the business environment. The contribution of lack of succession planning, ego clashes, the fissionary trends in joint families and the conflicting interests of family and business will be studied as part of family dynamics. Changes in the business environment will look at how the MRTP act, liberalization, competitive threats, and increased shareholder activism changed the way business was conducted in India leading to splits - which were sometimes strategic in nature and at times forced upon the IBH.

The success of a business house post splits will be judged primarily on quantitative aspects. The raw data for publicly listed companies will be collected from databases such as Prowess and Capitaline for each of the IBHs (from the year 1992 onwards). Growth, profitability and market capitalization numbers will be used to determine the financial success of the IBHs. Considering that this data will not be available for companies before 1992, and for companies not listed on the bourses, the majority of the research in this section will be confined to the companies that have such data. For the other IBHs pre-liberalization, numbers such a Total Assets of the companies will be used as a reference of success. These numbers will be obtained through secondary research. The works of Gita Piramal (2003) and the special issue of Business Today (1998) give us some preliminary data in this regard. The survival of the IBH, in terms of longevity will also be used as one of our parameters of success.

Based on the analysis of the data above, we will classify the IBHs post splits into successful and failed entities. We will attempt

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