Student Dissertation

Agency : Feasibility Study; 250 Bed Hospital; Healthcare Facility

Objective : General: To understand the feasibility for a hospital in Nagpur market. Specific: • To assess the healthcare needs of the area. • To obtain healthcare indicators of the target area. • To understand the Consultant Engagement Model. • To identify and analyze competitors market. • To understand the demand and supply of healthcare services

Background : • In Nagpur most of the hospitals are single specialty. Very few multispecialty hospitals are present in the market. Residents in Nagpur have to travel to multiple places to avail tertiary healthcare facility. There is a demand more of multispecialty hospital in the city. • Historically, inflow of patients to hospitals in Nagpur was high on account of limited access to good healthcare in other cities. However over time, this scenario has changed. • Nagpur has an acute shortage of good corporate hospitals which can cater to the needs of the growing middle class as there is just one premium set up for the entire city • The Nagpur has a total population size of c. 2.63 Million; the market is dominated by unorganised players with with very few hospitals being the major multispecialty healthcare provider.

Methodology : • Type of study : Descriptive • Study population : Doctors, Administrators, Medical suppliers and Star Consultants • Study area - Nagpur and nearby districts. • Duration of Study – 3 months (12 weeks) • Type of Data - Quantitative Technique – Data was collected through face to face interviews with multiple sources through pre-designed structured questionnaire. • Tool – Questionnaire • Sample size – 95(all the doctors and nurses were covered.) • Data - Primary

Findings : 1. ~75% of the patient drainage of the major hospitals in Nagpur is from within. 2. Overall~70% of the patients pay from out of pocket to meet their healthcare requirements 3. The majority (~70%) of patients availing services in the private sector pay out of pockets, demonstrating small proportion insurance penetration. 4. ~ 30% of patients have some form of insurance including private health insurance, public health insurance, government schemes like Rajiv Gandhi Jeevandayee Yojana, etc. 5. The pay outs for government schemes vary between 4-8 months with chances of rejections, which hampers the hospitals cash flows. 6. Rajeev Gandhi Jeevandayee scheme was launched by the state government in 2012 covering the Below Poverty Line (BPL) families (Annual income less than 100,000 INR) across state. 7. Under this scheme, BPL families can avail treatment upto 150,000 INR per yearin empanelled hospitals with a special provision of upto 250,000 INR for kidney transplants. 8. Care, Meditrina, Orange City are the major hospitals who have empanelled under this scheme primarily to build volumes

Recommendations :High drainage into Nagpur from peripheral areas, dearth of quality healthcare infrastructure and providers are some of the major factors which propels need for developing better healthcare facilities 1. High drainage and dependency of patients o Being the largest city and most developed from a healthcare infrastructure perspective in Central India, patients from Vidarbha, South MP and Chhattisgarh are dependent on Nagpur for healthcare treatments o Around 50% of the patient base in Nagpur hospitals is from outside Nagpur 2. Dearth of quality care institutions o Besides Wockhardt, Alexis and 2-3 new projects, hospitals in Nagpur lacks infrastructure to provide multispecialty care under one roof o Ambience and look & feel wise also majority of the facilities would not get classified in the corporate hospitals set up style. 3. Development of city’s infrastructure o Connectivity perspective, Nagpur is well connected to all the major cities o MIHAN SEZ is set to give an image makeover to the cities' infrastructure 4. Growing affluent class o Nagpur has the second highest per capita income of ~0.26 INR Mn when compared to tier 2 non-metro cities with population more than 2 Mn o The city is estimated to have an affluent population of ~48% in 2016-17