Submitted To:

Submitted By: Ritu Agarwal () MBA 2nd SEM (B)

Dr. Tarika singh (Faculty PIMG)

Hospitals are an important component of the healthcare delivery system. Over the years, India has experienced a significant increase in the number of hospital beds to meet the growing health demands of its population. Most of this growth has been experienced in the small sized private hospital sector (popularly known as nursing homes in India), however growth in terms of facilities and efficiency has not risen, which is probably due to the financial health and risks, as these are critical determinants in attracting private capital.

Arora hospital
Arora hospital is a famous hospital in Gwalior (M.P.). This hospital is built in Lalitpur Colony, Jayendraganj. The hospital has been running for years by Dr. Shri L.N. Arora and Dr. Amita Arora. This hospital treats patients suffering from Calculus/StoneUrinary, Cholelithiasis/Gall stones and treats them through Gastroenterology - Surgery General surgery Laparoscopic surgery. Dr Arora is very kindhearted person and despite being one of the leading Lacroscopic Surgeon of the city, he charges patients with very minimal fees and provide them with the best treatments. Within his house premises, he started with small clinic, which has now expanded to a hospital, with limited number of rooms and beds. Hospital however provides medical care and attention to the needy people. It has 2 private rooms, 1 general ward, operation theatre, clinic, waiting room with all basic amenities in all; but operation theatre is equipped with world class lasik machine and all latest theatrical/medical equipments and staff.

Facilities Provided:
Medical facility Ambulance facility Doctors are available for whole 24 hour in hospital

Limitations of hospital:
Few wards, so limited patients can be admitted Small medical store
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Problems Faced:
Every hospital in order to run efficiently face some or the other issues. As per the latest survey, Financial Problems is the biggest hindrance in the development of any hospital, and we also figured out the same during our visit. Attracting Funds, Debt Financing - Getting funds and finances is not very easy. Although Government has provided lot of incentives to boost the sector, but local people and banks does not offer funds or loans very easily. Also interest at a considerable rate has to be paid for the debts taken, and paying off the debts takes a lot of time, as a result of which heavy debts continue to reflect in the balance sheets for long and reduces the profitability. Competition from other hospitals - Due to increasing hospitals , the competition has raised to a very high level , because of which various issues have to be faced o Staff Problem Increasing competitions has increased the attrition rate amongst the staff. New hospitals or big hospitals offers high salary to the trained staff, which in turn switches to other hospitals, hence higher salary and frequent salary hikes increases the cost and the efficacy of staff o Fees Patients are not very eager to pay the fees, they prefer some discounts on the specified fees. Also because of competition a very fees cannot be demanded from the patients. Innovations and Advancement in Technology- To be advanced and updated with latest technology and process, being just aware does not works, the equipments, surgical instruments also has to be replaced with time. All these machines are imported and are very costly. Lot of import duty has to be paid for it and recovering the cost of the machine takes lot of time. Billing Related Issues Some of the patients either because of their financial conditions or because of their misery nature, does not wants to make full payments. At the time of settlement of bills, they talk about unsatisfactory services or staff misbehavior and wants deduction on those grounds. Infrastructure Maintenance Buildings, beds, office, chairs, and clinic has to be frequently maintained and renovated as per the requirements. Today when lot of other hospitals are offering cozy ambience, a well-structured hospital has to be maintained. Stocking of Medicines - Issues such as overstocking and high stock of expiring and unused medicines, multiple points of storage and inability to track actual consumption add to a hospital's challenges. As the medical store is very small, medicines stocking
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becomes issues at times. Also different patients are allergic to different chemicals, hence maintain vast variety of medicines at limited space is a problem and further at times the investment becomes dead when medicine expires. Medicare Reimbursements - There are lot of reimbursements which has to be made in the bills viz insurance claims, medical aid claims and government offered mediclaims on certain treatments, which overall reduces the fees which we receive from the patients. Although the mediclaims which various insurance companies provide to the patients have to pay us back the fees, but the payment from these companies takes lot of time and paper work, which further affects the money cycle.

Government Funding Cuts Lot of incentives, tax benefits which government used to provide at some time have been wiped off or reduced. Also gaining funds from the govt is very tedious process and the amount which they use to give as funds have been reduced, so creating funds pressure increases.

CONCLUSION After our visit to the hospital and discussions with staff, patients and doctors, we concluded that the hospital offers good amenities and medical facilities to the patients, but the hospital is suffering from financial issues. We realized that hospital sector is capital intensive and as new technologies are developing, a fresh capital inflow is always required in order to sustain with timely advancements; hence funding would always be an issue. Also a margin in this hospital is low, as its providing good efficiency and efficacy at minimal prices compared to others. Personally, I feels that benevolence and business should be kept separate otherwise finances would always be an issue. Also operating cost is very high in hospitals because of continuous power utilization and generator backup for operation theatres; hence some other unconventional modes should also be utilized for power generation or atleast for light and ventilation. Also relationship between health insurance sector, government and private hospitals should be well-built and supported by each other, so that the hospital should not feel burden on the name of mediclaims, and patients, doctors everyone has a happy three-way relationship. Further government should also come up with certain incentives, like no import duty, VAT on medical equipments, supporting a manufacturing unit of medical instruments within the nation, so that overall cost of running hospital gets down. Further support and incentive from government for PPP may promote health sector a high boom and hospitals would be in a better position to provide good facilities to patients at affordable price, without feeling financial burden
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