The document discusses strategies for analyzing and improving the business of healthcare in Nigeria. It outlines the services provided by Aesculapius Healthcare Consultants, which include healthcare project management, business development, and quality improvement. It then discusses challenges facing the Nigerian healthcare system like a lack of regulation and investment. The rest of the document provides recommendations for hospitals to improve areas like financial management, planning, pricing, competition strategies, and quality management. It describes Aesculapius' approach of defining problems, measuring metrics, analyzing causes, improving processes, and controlling changes using a DMAIC strategy. The goal is to help hospitals operate in a more effective and profitable manner.

1. ANALYSING THE
BUSINESS OF CARE
Dr Olufemi Aina
Aesculapius Healthcare Consultants

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. Hospital Business Environment
Government
Financial
Institutions
Competitors
Clients
Employees
MD
Community
Suppliers

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. 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. 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. 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. 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. 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. 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. 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. • 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. 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. Other Focus Areas of AHIA
• Quality Management Program (QMP)
• Appraisal Systems & accompanying
Performance Indicators
• Patient Safety Strategies
• Superior Quality Service

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. 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. 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. 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. 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. 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. Contact Us
 Phone- +234-8052064317 | +234-8023277559
 Website- www.aesculapiusvn.com
 Facebook: Aesculapius Healthcare Consultants
 Twitter- @AesHealthCon
 Email- aesculapiusvn@gmail.com