Showing posts with label Views on Healthcare Quality. Show all posts
Showing posts with label Views on Healthcare Quality. Show all posts

Friday, 21 September 2012

Understanding Nigerian healthcare system and business scenario: Experiences from week 1 of my visit

A travel from one continent to another one can really change one’s perspective to life and people. I got a similar opportunity to travel and train my perspective on Nigeria during my current assignment. Along with my colleague, I am in Nigeria for a 3 week multi-project visit. One of the things we are doing is trying to understand the Nigerian healthcare delivery system through the eyes of the Nigerian providers. I am in the 2nd week of the visit, so this post is coming right from the Nigerian soil at the city of Port Harcourt in Rivers state.
I would not make this post a travelogue. Rather a quick gist of some interesting observations about the country and its healthcare setup from the eyes of an Indian who travelled to this country for the first time. So you can expect a whole lot of comparison, because that’s a natural outcome of my observations. We have already visited 3 cities in the first week, i.e. Abuja, Lagos and Calabar. Abuja is the national capital; a very modern city built with a western town-planning. Lagos happens to be Nigeria’s commercial capital as most businesses are based here. Calabar is like Goa, an exotic place with a life of its own and an ample amount of peace to offer.

Abuja is a city with most of Nigerian federal govt. setup, so one can easily observe a lot of govt. offices of all sorts in the city. I was amazed to visit such a modern city and it appears and feels very formal, very bureaucratic. We were there in the city for a day only, but from our discussions with various healthcare providers and through our own visit to various places in the city, I felt the healthcare system in the city not upto the mark. More on it would come during the third week of our Nigerian visit. But an important thing to note is that there are embassies of many countries in the city and headquarters of many multi-national corporations in the city, so it has a healthy number of expats (with shifting population) who would pay well to access quality healthcare.

We spent most part of the last week in Lagos. The city has a long history as a major trade centre of Nigeria and continues to attract businesses as an important hub of financial activity. Mostly the roads get chocked by the traffic, yet one can feel the seriousness about business in this city. Spread over mainland and island suburbs, the city was better on healthcare delivery system availability. Yet, Lagos is very expensive in terms of healthcare costs and I think this can be partly due to the high commercial property rates and expensive labour in the city. Another source of high cost is power/electricity. It is mostly not available from the public utilities company, NEPA/PHCN. So most people and businesses use their own DG sets and power generators and UPS set-ups. Some hospitals quoted that as high as 90% of their power consumption is met by alternative sources only. Round-the-clock electricity availability is apparently the top-most worry of any Nigerian healthcare provider. But the good thing is that there are some good private hospitals and diagnostic centres that have done fairly well in attracting and retaining patients and building a brand over time. Lagoon Hospitals, Eye Foundation Hospital, Me Cure Diagnostic Services, Pathcare etc. have built great infrastructure in the city to enable good quality delivery system. There were other providers too who are trying to do good work in whatever little infrastructure they have built. But definitely there is a lot of appetite among the healthcare providers to attract investments and collaborate with other healthcare facilities across the globe to offer more and better healthcare services to their patients.

Calabar, to me, is like a small village. Quiet place with a small fixed native population. The whole atmosphere is the city is so laid back, waiting to go back to sleep each moment of the day. The people of the city are also mostly from middle and lower income category. Calabar is relatively cheaper than the other 2 cities that we visited, but there aren’t any decent private healthcare setups in the city. The city offers a good opportunity to create affordable healthcare facilities as many patients from the neighbouring states pour into the city for their healthcare needs.

Now time to share some interesting observations about the country. Nigeria is the most populous and one of the wealthiest African nations owing to its oil reserves (it is the 12th largest producer of petroleum). Most of the GDP is contributed by oil exports and this happens to be a major source of employment. Nigeria has very little domestic production; therefore it is a major importer for almost everything that a common man requires. You name it, they import it. Therefore there is no concept of fixed MRP (Retail Price) in the country. 10 people would sell the same thing at 10 different prices. It took us time to understand that there is no apparent logic in pricing in this country. An Indian rupee (INR) is equivalent to about 3 Nigerian Naira (NGN), and 1 USD = 157 NGN. But we went mad trying to apply conversion here, because most things cost much higher compared to their prices in India. Mostly that is due to the reckless pricing that sellers do here. To their good fortune, buyers pay whatever money is charged to them. To give you an example, we were in a restaurant in Lagos which did not display prices of the items on the menu! (Of course, it was an exception).

In terms of road network and other infrastructure, we felt Nigeria is way ahead of India and a visit to Abuja can really give an Indian an inferiority complex. But Nigeria also falls short of India in many other sectors, including healthcare. I would say, Nigerian healthcare market is like Indian healthcare market of 1980s and 1990s when very little healthcare infrastructure existed, and with less focus on quality of care. Indian healthcare market witnessed a boom because of the larger and widespread participation of private healthcare businesses who invested heavily in expanding the infrastructure. Consequently, Indian doctors now-a-days find lesser reasons to work abroad. But that’s not the case with Nigeria. Brain-drain is very strong and many Nigerian patients would trust expat doctors more than their domestic doctors. Medical travel is partly a fashion and partly a necessity in this country. It is ironical to find extreme wealth and extreme poverty co-existing in Nigeria. Those who can’t afford don’t have access to any medical facility. And those who can afford would prefer to spend their money in seeking care abroad because of higher assurance of quality of care and status symbol.

There are just a few healthcare centres of excellence in Lagos, otherwise you won’t find a nationwide strong healthcare brand. Another peculiar thing about Nigerian healthcare market is that the providers do not like to advertise themselves much. While there are strict norms on healthcare advertising in India, nothing of such sort exists in Nigeria. But it still beats me why Nigeria providers do not spend on marketing. Very few would have a website of their own and many of the hospital websites are in such a bad shape.

I believe healthcare is in its infancy in Nigeria and probably the country needs to import ideas for healthcare innovation to build an efficient system and create affordability for the masses. For those looking at investing in Nigeria, I think you have made the right choice. But spend some dollars in understanding the market and the people before you bump into any surprises. For example, bank lending rate in this country is 20% plus. Yes you read it rightly. The bank would lend you for more than 20% and would expect you to repay within 12-24 months max. That’s crazy! Health insurance is near- absent and Nigeria would beat India in terms of out-of-pocket expenditure on healthcare. And Nigerians love to transect in cash because Nigeria is notorious for credit card and internet frauds. A consultation with a specialist can vary from 10K Naira to 30K Naira, that’s about 3K to 10K Indian Rupees just to meet the doctor! Of course, this is in-line with the high cost of living in this country.

We are currently in week 2 of our visit and stationed in Port Harcourt, another major trade centre in Nigeria. Wait till the next week for interesting insights on this week’s tour.

Friday, 31 August 2012

Quality Accreditation - The sustainable competitive advantage

Below is a whitepaper I had submitted for publication during a conference on Quality accreditation held in Pune.
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We live in exciting times in India. As an emerging market, India is at the centre of attraction of the world and everyone is talking about India as the land of opportunity. Indian Healthcare industry is one of the sectors of the economy which is leading this exuberance. All major consulting companies, be it KPMG or PwC, estimate double-digit growth figures for the healthcare industry for the next decade. An IBEF (India Brand Equity Foundation) report of November 2011 estimates healthcare industry size at US $280 Billion1, bolstered by rising income levels, expanding middle class, an increasing appetite for premium services and conducive policy environment.

In all this hoopla, it is easy for anyone to miss the reality. The fact is that most investment in healthcare in India is by private sources and a lot of money in flowing into building new hospitals and adding more beds, given the low bed availability in our nation. According to World Health Statistics, India has 0.9 beds per 1000 population, way below the global average of 2.92. But most of this infrastructure is getting built in the metros and tier-I cities of the country leading to over-penetration in many areas. Most of this infrastructure is being built at a high capex. The mushrooming of hospitals in urban centres has led to an increasing competition among the various players. So on one hand, hospitals are grappling with higher costs, on the other hand they also need to fight tooth and nail with their peers to achieve moderate bed occupancy.

Indian healthcare also suffers from systemic flaws which haven’t been fixed due to misplaced priorities by both government and healthcare businesses. Even when the size of the industry has become US $50 Billion3, standardization of quality of care still remains a dream in our country. The pricing patterns even for common surgeries vary extremely in the country. Not many patients would agree that they could understand the processes or policies followed in the hospitals from which they received care. Most hospitals do not provide clarity on the services rendered by them and one can easily find examples of misrepresentation of services by hospitals in most of the Indian cities. Indian doctors have also been blamed for following unethical practices like prescribing over-medication and unnecessary diagnostic tests to pocket commissions from pharma companies and diagnostic centres respectively.

Visiting a hospital in India is a pain of its own kind. One can easily observe poor inter-departmental coordination and may even face eccentric rules and policies in a hospital. Most hospitals, for the sake of saving money, compromise on patient safety. While in the West, people are obsessed about preventing Healthcare-associated Infections (HAI) and there are elaborate studies on the risks to patients because of them, Indian hospitals are still sleeping over the issue. The biggest risk to patients arises from the inexperienced doctors and untrained medical professionals providing their services in our hospitals. Industry’s standard excuse has been the high rate of attrition and the huge demand pressures leading to compromises on quality of medical professionals. One can go on and on in identifying the problems that the industry faces. Finally, it is the trust of the patients that takes the beating because of these problems.

However, there has been a paradigm shift in how patients today consume healthcare services. In the internet age, patients are using social media to voice their opinions about the quality of care they receive at the hospitals. The present day patients question the treatment options offered to them by their doctors and many of them switch doctors easily if they are not satisfied. Gone are the days when patients trusted their doctors and hospitals with their eyes closed. The modern day patients demand healthcare providers to demonstrate quality in their services and deliver clinical excellence which is measurable and comparable.
Till a decade back, hospital accreditation was unheard of. National Accreditation Board for Hospitals and Healthcare Providers (NABH) was established in 2006 to bridge this huge gap between what the patients demanded and what the healthcare providers were offering. NABH standards for hospitals (1st edition) began with 504 objective elements spread over 10 chapters and 100 standards and in its latest revision (3rd edition) the NABH standards for hospitals have grown to 102 standards with 636 objective elements. Accreditation requires a healthcare provider to demonstrate its compliance to standards and after a stringent assessment process they are given the accredited status. This assumes significance in the light of the fact that till date only 138 hospitals4 in India have been able to achieve accreditation from NABH. According to one estimate, India has about 40,000 hospitals of small, medium and large scale5. Therefore, as per this estimate, not even 1 percent of hospitals in India have NABH accreditation.

In this scenario, accreditation presents a unique opportunity to healthcare providers. Quality accreditation can provide a sustainable competitive advantage to healthcare businesses if they build their strategy around creating NABH standards compliant infrastructure, policies and processes. A closer look at NABH standards indicate that the standards promote adherence to global best practices of healthcare delivery and there are detailed guidelines on measuring performance of hospitals on pre-defined quality indicators. Through a systematic approach, any healthcare business can achieve compliance to these standards. But it is easier said than done. Accreditation requires an organizational culture change which needs to be sustained for a longer period of time. A culture developed on the bedrock of quality care and patient safety will provide utmost quality assurance to patients and the community at large. Recent trends also indicate that patients have become more aware about accreditation and they are basing their choice of hospital on whether the hospital has any kind of accreditation or not.

Given the fact that only quality-focused hospitals will be able to achieve accreditation, it would ensure that those hospitals will always remain on top of the preference list of the patients. While the competing unaccredited hospitals may boast of great infrastructure, good doctors and affordable pricing, patients will not risk their lives with such institutions when an accredited facility is available in their city. It is a commonly known fact that in the matters of health, patients do not take their decisions based on the price of the treatment. Rather, they base their decisions on the treatment style of the doctor and assurance of better clinical outcomes. An accredited hospital would definitely enjoy an edge over its unaccredited peers. Since achieving accreditation is not an easy thing and an applicant may take couple of years to pass the NABH audit, this would ensure that an accredited facility stands out from the crowd.

In conclusion, it can be seen that there is a paradigm shift in healthcare industry in India. Accreditation bodies like NABH will play a vital role in ensuring delivery of quality care through the hospitals which are accredited by them. While there is an intense competition among hospitals, ones which have received accreditation will be able to provide greater assurance to patients about the quality of their care delivery system, something which their unaccredited peers cannot provide. Healthcare businesses need to have a strategy on leveraging accreditation to convey their superior care system to the patients. Since not even 1% of hospitals in India have received accreditation, this situation presents an opportunity for healthcare businesses to establish sustainable leadership position in their target markets by aligning their organizational culture and infrastructure to comply with quality accreditation standards.

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Sources:

1. Healthcare Report by IBEF, November 2011, URL: http://www.ibef.org/download/Healthcare50112.pdf, last accessed on August 8, 2012
2. The Times on India Online Article titled “India doesn't have even 1 hospital bed per 1,000 persons”, October 2011, URL: http://articles.timesofindia.indiatimes.com/2011-10-10/india/30262811_1_beds-tertiary-care-aiims, last accessed on August 8, 2012
3. The Economic Times Online Article titled “Indian Healthcare to double size to $100 bn by 2015”, January 2011, URL: http://articles.economictimes.indiatimes.com/2011-01-28/news/28428766_1_healthcare-sector-private-equity-indian-healthcare, last accessed on August 11, 2012
4. NABH, URL: www.nabh.co/main/hospitals/accredited.asp, last accessed on August 15, 2012
5. Views on Healthcare Quality Blog titled “eNABHle: Achieving NABH accreditation”, May 2012, URL:  http://ikureknowledge.blogspot.com/2012/05/enabhle-acheiving-nabh-accreditation.html, last accessed on August 15, 2012