Student Dissertation

Agency : Public Health; Business Opportunities; National Health Policy; Universal Health Coverage’

Objective : Objectives of the Appraisal are to explore the emerging business opportunity: assess the feasibility of acquisition of Konnur Hospital by the Group, and to project a business plan for Konnur Hospital.

Background : National Health Policy-2017 envisions a healthy India through a multitude of initiatives and proposes strategic integration of departments, verticals, programs and sectors in achieving the overarching goals of equity, access, and responsiveness. It aims at aligning the growth of private healthcare sector in line with the public health goals, while progressively implementing the ‘Universal Health Coverage’. As part of this, the policy proposes to actively encourage private sector investments in rural healthcare and strategically purchasing services from private players.

Methodology : Methodology involves in-depth interviews of stakeholders like medical practitioners, suppliers, citizens and patients based on purposive sampling, guided by a pre-developed interview schedule. The study design is a qualitative appraisal combined with a cross-sectional study of current revenues.

Findings : The results of this appraisal exercise bring out that the Koppal population is growing at a decadal rate of 16.32 percent, higher than the state’s rate of 15.67 percent. The Hyderabad Karnataka region is growing at a decadal rate of 18.46 percent, wore than Koppal’s growth rate. The region’s population growth has increased over the previous censal period (2001) though, Koppal Growth rate has significantly moderated downwards from 24.84 percent. The population density in Koppal has increased the maximum among the districts of the HKL region, by 51 percent over the previous censal period (2001). High agricultural dependence coupled with only 40 percent area under irrigation, of which 67 percent of the area is sown only once a year, has only perpetuated the poor socioeconomic condition of the district. Over 73 percent of the population is below the poverty line. More women are expected to enter the reproductive age group in the next 4-10 years, with expectant maternal health demand to grow over the years. Konnur Hospital has an encouraging revenue estimate of over INR 16.7 lacs per month at market rates, with an annual revenue potential of up to INR 8 Crores. Konnur Hospital tops the recall among potential customers at 47 percent, with the next only at 17 percent, making it the undisputedly preferred destination for Koppal Healthcare market. The health status of the district is going to remain challenged in the future offering a steady platform for the acquired Konnur Hospital to be developed into to strategically important establishment from the point of regional presence and market consolidation along the Hubli-Gadag- Koppal axis, with potential to expand the footprints into the larger under-served Hyderabad Karnataka Region. The stakeholders offer minimal risk, with very less entry and exit barriers. Strategic investment in Konnur Hospital may open newer avenues into the underserved Hyderabad Karnataka markets to be tapped eventually.


x