Should Siddhivinayak Multispeciality hospital & Cardiac Care implement new promotional strategies in order to achieve a greater patient flow?

Siddhivinayak multispeciality hospital and cardiac centre is a 56-bed hospital established in 2016, located in Kalyan, India. The hospital has been providing medical and various surgical treatments and is only the hospital that has a specialized cardiac center in the locality. They operate 24/7. Due to its long continuance, it has gained popularity in the medical sector in the city. The hospital is located in a densely resided area. Two years back, in 2020, there was a change in the hospital's management and directors as the previous management was the cause of the hospital's negative image. Hence the objective that the new directors shared was to regenerate a good hospital profile and since then they have been quite successful in doing so. According to Dr Shalvi Gaikwad, in the past year, when Covid 19 pandemic almost ended the hospital has faced a decrease in the patient admissions and their marketing department has been in turmoil.

The hospital did not invest much in their marketing department previously since the pandemic resulted in an excellent patient flow. Although now, the hospital aims to boost their patient flow to cover overhead expenses and produce profits. The relationship with the doctors that refer patients has also been out of order. As of now the hospital is still working on its promotional strategies. Thus, this research paper could explore various marketing strategies the hospital could use and possibly outline basic strategies that could be helpful in most of the healthcare businesses.

1)Primary research

Sources of data collection:
An interview with the directors of the hospital provided in-depth information regarding the working of the business. The interview was carried out to understand the business, its history and succinct problems it has been facing. The interaction helped in getting qualitative data and analysis of the problem. A survey was conducted and a questionnaire was prepared for the patients. The survey allowed an insight of consumer perception about the hospital.

2)Secondary research

Sources of data collection:
The financial records for the year 2021-2022 were provided by the business. They helped in better understanding of losses and profits. Research was also acquired from business management textbooks and articles related to promotion.

In the face to face conducted an interview with the directors of the hospital, an overall understanding of the marketing and performance was established. New management took over the hospital in 2020 and since then there have been significant improvements in its working practices. The hospital is one of the well-known hospitals in the medical community of the place and hence they have been dependent on referral patients for a long time. During the interview, it was clear that attracting patients was difficult as the dependency on references was too much. The hospital's main specialty is its Cardiac centre, completely dedicated to cardiology, a specialty uncommonly found in the area. The directors are concerned that the hospital is not attracting enough patients even after providing a good quality service.

In the interview, the directors also suggested that the hospital has developed a negative brand reputation among doctors and patients; as an over-expensive hospital. The reduction in patient inflow is leading to losses and thus the directors want to focus on providing quality patient care and improving their marketing strategies.

The survey focused on getting feedback regarding current patient care and to assess what promotional strategies are impactful. The survey also gave us an idea about what they expect from the patient care and where does the current patient care of the hospital stand in the market.

An interview with the directors helped me evaluate that it is necessary for the hospital to be known to the target customer base. From the data, one of the solutions to the problem could be setting up medical check-up camps frequently in order to spread brand awareness.

Swot analysis highlights the strengths, weaknesses, opportunities and threats of a business. Through the secondary data and primary data combined, I have formulated a SWOT analysis.

Siddhivinayak hospital has gained popularity throughout the years due to its long functioning and is now very well known in the medical communities. The hospital is located in a densely resided area and thus its visibility is widened. It was discovered that its cardiac center is among the few known centers in the town. The cardiac centre acts as a strength since it allows the hospital to stand out and acts as a unique selling point. Through years of working, the hospital has also gained experience, knowledge and skills.

As mentioned by Dr Shalvi, along with the BODs, the hospital is currently facing loss due to decreased patient flow. After the pandemic, the hospital's patient admission suffered a steep decrease. There is poor cash flow and liquidity problems which are highlighted by the financial reports. Another weakness is limited sources of finance, as increasing the patient flow is the only way currently.

Opportunities have arisen since the management has changed and thus there is a prospect of rebuilding the brand. There has been growth in the medicine market and the hospital can diversify into various fields like pharma-suppliers, research and even a teaching hospital.

The directors also shedded light on the new entrant and rival hospitals setting up in the same locality. The resources, hospital machinery, and so on are also expensive now and the latest technologies are almost unaffordable. The hospital is also facing negative publicity as an over expensive hospital threatening the patient trust even more.

A fishbone diagram shows numerous potential root causes of an effect or issue. The fishbone diagram will evaluate the possible reasons behind the decreased patient flow of the hospital.

The preceding fishbone diagram illustrates seven possible causes for the hospital experiencing a reduced patient flow. Starting with the process, during the interview with the directors, it was mentioned that people do not prefer seeking medical attention from the hospital anymore due to the procedures being expensive. Expensive medical procedures are a major factor as there is immense competition, thus people can easily choose not to go to a certain hospital. Patient care or service is as important as the price. The survey that was conducted showed that 13.7% and 35.3% rated the hospital's service as 2 and 3 on a scale of 5. This depicts that the hospital is lacking in the quality of service provided due to reasons like staff behaviors or price itself. The staff behavior is important and inappropriate staff behavior or unprofessional could be the reason for decreased motivation. The gradual shift in the patient flow after the pandemic might have instigated inefficiency or casualness. Several factors that are not entirely in the hospitals control, like decrease in referrals has also played its role. As the primary data collected illustrates that the hospital is heavily dependent on primary healthcare workers. Primary healthcare workers' referred patients are vital to the hospital, thus decrease in them affects the hospital enormously. Seasonal variations, for example lowest number patients during the summer, are also a cause. In this investigation, we further look into a possible promotional strategy as the hospital's brand image suffers. Since it has gained the reputation of being expensive, customers that are cost conscious hesitate before choosing the hospital. Bad word of mouth regarding the quality of care, decreased trust and negative publicity, all calls for new promotional strategies.

During the interview with the directors, one possible promotional strategy that came up was organizing free medical checkup camps. According to the survey conducted among patients, (percentage add) stated that they had heard about hospitals previously either from their family doctors or through camps conducted by the hospital. Free medical checkup camps convey that the hospital is not only striving for profits but is also aware and socially responsible. Accessing healthcare facilities for free even at a smaller scale sheds positive light on the hospital's image. The camps, although rarely, could also bring in new patients through the camps. Undiagnosed illness or sickness is identified during a check-up thus people might find it easier to start the treatment with the same doctors. One of the major advantages of camps is that they include low set-up costs. Already present machinery and equipment is used, thus only overheads like electricity, refreshments, etc. required monetary investment. The hospital might have to pay additional salary to the doctors; however, some might waive them off as it is also a social responsibility. The requirement of additional doctors increases as well as supplementary staff to conduct the camp. Even though the labor costs and transportation costs increase, the hospital would not have to incur hefty amounts and ethical practices like these also result in staff motivation and support. Crucial part regarding the camp is finding a suitable location which will attract people. Numerous considerations are important, such as, making sure that another camp was not organized on a particular location during a short period of time and the locality is well resided. Based on these arguments, the driving forces outweigh the restraining forces (11>8). Therefore, the business can use camps as a promotional strategy. Along with that, since the hospital's forte is the cardiac centre, cardiac check-up camps can also be implemented since they are uncommon and more desirable.

In order to increase the patient flow, promotional strategies like value-added services, sponsorships and check-up champs could be adapted by the hospital. Sponsorship is a commonly used marketing strategy but here in SMH's case it lacks as communication of the brand's beliefs and information cannot be efficiently conveyed through this promotional strategy. Free checkup camps are one of the most feasible options to increase brand awareness and visibility. Apart from this, checkup camps are also an eminent way to communicate the hospital's conscience and social responsibilities. The force field analysis shows that checkup camps are an excellent way to promote the hospital as the driving forces are greater than the restraining forces. Based on the analysis, I would more likely recommend the directors to go forward with free medical check-up camps. The force field analysis and the survey indicated that patients will result in increased trust in the hospital and concludes to be an effective way of promotion.

On the basis of the interview, I would also like to recommend to them that they should build up trust between the doctors too as they are dependent on referral patients too. A good option like value added services like bonuses on referrals and other incentives majorly impact the brand image but also require additional higher costs per patient. Apart from promotional strategies, the hospital can focus on implementing newer finance options, like insurance plans from banks they do not permit. Even the survey depicts the patients' want for newer finance options. The hospital has an online presence which it can work on to display its quality of care and provide insights into their specialties. In the long term, after stabilizing the patient flow, the hospital should focus on articulating newer packages and discounts for their customers. Further, after the camps, the hospital can diversify into hosting healthcare events which might even gain them CSR advantages.

Good afternoon, Dr Shalvi Gaikwad and Dr Abhay Gaikwad. Thank you for helping me to do this and agreeing to the interview.

1) Do you mind telling me how the business started?

The hospital was founded in 2016 but we (the new directors) took over the hospital in 2020. The previous management was associated with the hospital's bad reputation but since we took over, we are trying to rebuild it.

2) What is the current problem that the hospital has been facing?

Recently we didn't have updated instruments, but a month ago we purchased and installed almost all new machinery and devices. Yet even after upgrading we are going through loss. The patient flow has decreased significantly and it is a worrisome matter.

3) On an average since the past three years how many patients did the hospital have?

I feel on an average we catered to 60-70 patients in a month but since these six months the number has decreased.

4) During which season, does the hospital have the highest number of admits?

The highest admits come in during monsoon mostly. There are casualties of accidents along with the virals and flu. Otherwise, the hospital is usually dependent on its Cardiac Center and there is no such season for it.

5) What according to you is the reason behind the decrease in patients?

Initially we felt it was the unavailability of the latest technology, but now that we have nearly fixed it, we are not seeing significant improvement. One of our employees in the marketing department informed us that we have a high charging reputation, we feel maybe that might be it. Plus, there are many other hospitals opening.

6) What is/are your current objective/s?

Current objective is to bring in patients and reduce transfers. We want to improve the marketing strategies too. Also, the main objective is always to provide quality treatment.

7) Does the hospital have any marketing plan as of now?

Yes, we are dependent on good word of mouth and referral patients by the doctors.

8) Do you think that the hospital needs to change its promotional strategies?

We completely do. I think promotion could help us increase our customer base and spread awareness about hospitals which could bring in more patients. We thought of organizing a free medical checkup plan but we are not sure of it as of now.

9) Do you feel promotional strategies like free checkup camps, getting a brand ambassador and re-modelling Value added services could be a way to improve your crisis?

We would want to know obviously if we will get a greater good out of the investments. But among these, we think value added services would be difficult since the hospital does already provide a 10% discount to all patients and it does not seem to be making a difference.

Siddhivinayak Multispeciality Hospital & Cardiac
Near Brahman Society Opp ICICI Bank
Murbad Road Kalyan (West)
Profit & Loss A/c
1-Dec-21 to 31-Dec-22

Are you a transfer, referral, emergency or direct patient?
51 responses

How has your experience been so far?
(On a scale of 1-5) 51 responses

What sets the image of the hospital according to you?
51 responses