Presentation at Business Analysis Conference (IIBA) at Fourpoints, Lekki


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Presentation at Business Analysis Conference (IIBA) at Fourpoints, Lekki

  1. 1. ANALYSING THE BUSINESS OF CARE Dr Olufemi Aina Aesculapius Healthcare Consultants
  2. 2. Aesculapius Healthcare Consultants • Competencies in Healthcare Project Management, Business Development, Idea Generation, Patient Safety and Healthcare Quality Management. • Certified Project Managers and Accountants • American Society of Quality (ASQ) Certified Six Sigma Black Belt Practitioners. • Patient Safety Experts, Health Insurance Advisory
  3. 3. Hospital Business Environment Government Financial Institutions Competitors Clients Employees MD Community Suppliers
  4. 4. Complicating Nigerian Healthcare Business • Regulated and Unregulated Competitors • Unbridled Outsourcing • Lack of Sustainable Investment 160 Million Nigerians Best Operators, Worst System and Managers Sometimes/Some Passionate Operators Lack of Standards • Ego • Lack of Leadership Skills Docile, Uninvolved, Happ y Nigerians
  5. 5. Problems with Hospital Business • Poor Documentation • Lack of Investment Strategy • Poor Cash Management • Poor Risk Management • Failure to Understand the Business • Poor Planning • Poor Banking
  6. 6. Lack of Financial Management  Analyzing and Reviewing the Financial Information of a Business  Measure the Current Health of the Business or Practice .  Make appropriate decisions to Improve Performance  Financial Management is a Tool to monitor Private Practice.
  7. 7. Lack of Financial Statements Cash Flow Balance Sheet Shows When and How Much Provides a SNAPSHOT of Money is coming into the the Business at a specific Business time Income Statement Records Financial Information OVER TIME and shows if a Business made Profit or Loss over Time How Much Money is expected to flow out of the Business over a period of time It’s a Picture of all the Assets Businesses must have an and Liabilities of the adequate record of all Business expenses or costs, they incurred to deliver their Services Shows if there is additional money for Investment It is like an X-Ray Shows how much can be used to replenish Stock It shows what the Business OWES and what it OWNS Income Statement helps compare Information over Time
  8. 8. Planning for Improved Financial Health Planning Process: • What does the Hospital want to achieve? • What is the Vision of the Hospital Practice? • How will the Hospital achieve its Goals. Goal Setting is crucial to Planning SMART Goals Goals can be Financial, Operational, Marketing, Product and Service Goals Hospitals need to Understand themselves, their Practice and their Environment. Do this by conducting a SWOT Analysis: • Strength • Weakness • Opportunities • Threats Planning should answer these: What, When, Where, Why, Who, How
  9. 9. Pricing of Services Factors that Affect Price: • Demand • Competition • Location • Type of Customers • Quality • Exclusivity of Products/Services • Costs of Offering your Products/Service Setting Prices Selling Price of Services = Direct Costs + Proportion of Indirect Operating Costs Indirect Overhead Costs: Simple Allocation Methodusing Mark-Up Proportional Allocation Method
  10. 10. Expansion Strategies and Competition Expansion Strategies should focus on the following: • Products/Services • Pricing • Promotion • Place Hospitals must think about: What Competitors are doing in developing Strategies. Differentiating Services from Competitors Questions for Expansion • What do Clients want? • What Price are they willing to pay? • Who is the Competition? • Estimate Number of Clients • Determine Service Mixcombination of Products and Services to can package together
  11. 11. Hospitals Must Analyze Breakeven Analysis & Margin • Breakeven Point is the Point which a Service will generate Profit or incur a Loss • It’s a point at which all Expenses paid out for a Service equals all Income earned by the Service • Breakeven Sales = Indirect Costs + Direct Costs Contribution Margin Sales- Direct Costs It gives an idea of what each Sale contributes to covering the Indirect Costs and making a Profit Desired Sales (Indirect Costs + Desired Profits) Contribution Margin(%)
  12. 12. • AHIA provides Holistic Advisory Service for Hospitals. • Focus of AHIA is more profitable Hospitals through the harnessing of its Manpower, ICT, Process Improvement and Waste Removal.
  13. 13. Consulting Services Know the Hospital and its Challenges Design more effective Engagement with Customers Know the People, design Impactful Capacity Development , with Post Training Evaluation & Follow-up Explore Opportunities to develop New Services Review Cost Structure to identify and remove Wastage
  14. 14. Other Focus Areas of AHIA • Quality Management Program (QMP) • Appraisal Systems & accompanying Performance Indicators • Patient Safety Strategies • Superior Quality Service
  15. 15. Components of AHIA  How are you reducing Patient Waiting Quality time- Clinics, Pharmacy, Laboratory and Management Front Desk? & Process  How are you Improving Quality of Service Improvement in your Hospital from the Patient’s point of view?  Are Patients happy and satisfied with your hospital?  Are Hospital Resources being used judiciously?
  16. 16. Components of AHIA Staff Training  Are your employees motivated at work? &  Do your employees have enough skills Development and knowledge to satisfy your clients?  Are your staffs contributing to development of your business?  Do you trust your staff to be professional when interfacing with your customers, even in your absence?
  17. 17. Components of AHIA Information Technology (IT)  Is Staff hiring based on Data driven fact or conjecture?  Is there Specialty service trend information for your hospital?  Can Hospitals immediately access Profit figures?  Can Hospitals instantly track income and cash outflows?  Do Hospitals have resource utilization projection for your Hospital?
  18. 18. Components of AHIA Hospital Evaluation & Profitability  Is the Hospital paying for Underutilized Service?  Is the Hospital paying for equipment with no ROI?  What service/equipment should Hospitals focus on to generate more profit?  Is the Hospital wasting hard earned resources through other means?
  19. 19. Components of AHIA Hospital Branding  Is the Hospital the first choice for people in its locality?  Are present Hospital customers bringing more customers to the hospital?  Does the Hospital use Social Media to engage Customers-Facebook, Twitter?  Do customers know what the Hospital stand for?  Does the general populace know about the products and services?
  20. 20. Strategy: DMAIC Define We identify the problems by engaging the Hospital management to define the problem areas and meet with Hospital staff to understand its processes. We study the Hospital, its environment, its opportunities, its processes and sources of dissatisfaction within the Hospital. We utilize process tools like questionnaires, interviews, value stream analysis and flowchart to define the challenges with the Hospital. Measure We measure the AS-IS metrics of the Hospital, with which we can make objective data driven decisions. We also help develop SHOULD-BE metrics for the Hospital processes, so we can measure the progress of our Improvement Project. Metrics determined must impact Business operations. Analyse We identify the few causes of major dissatisfaction within the Hospital, explore the major drivers of the business, identify factors that impact the Quality of service delivery and other Resource waste in the Hospital Improve We develop the SHOULD-BE processes for your Hospital and Strategies to bridge the AS-IS and SHOULD-BE processes that will revolutionize the Hospital into a World Class Hospital that is focused on satisfying present Customers and gaining new ones. Control We help maintain the new culture and processes by ensuring Hospital staffs are able to function in the new state of the Hospital. We ensure lessons learned are documented to prevent reversal to previous stage. We also empower your employees to continue Process Improvement efforts in the Hospital long after Our engagement.
  21. 21. Contact Us  Phone- +234-8052064317 | +234-8023277559  Website-  Facebook: Aesculapius Healthcare Consultants  Twitter- @AesHealthCon  Email-