HSCC enhancing healthcare
What have been the achievements of the organisation so far? What are the major challenges faced?
Our major achievements in the last 3 years have in both physical and financial aspects. Our growth has increased manifold as the turn over operating profit margin, PBT and net profit have been increased by more than 30 percent. Even in such a slow economy where major companies are facing challenges, the Hospital Services Consultancy Corporation (HSCC) registered a good financial growth.
In terms of physical parameters, the company was handling very few projects which increased up to 80 running projects at present at more than 50 places. The value of projects which was in few crore has been increased to the tune of several thousand crores. Despite all the growth and rapid expansion, the expenditure is still maintained at the same and the organisational structure has been changed to a pyramidical, and the efficiency of people working in HSCC has been increased manifold.
It’s commendable on the part of HSCC that, despite a reduction in fee, the PSU is still maintaining the profit margin of approximately 35 percent.
The major challenges that HSCC is facing are a reduction of the fee due to highly competitive market with all private and individual new players and attrition of experienced and trained staff from the company.
Hospital system and services are much specialised where getting trained manpower is extremely difficult.
The slowdown in the economy, especially, in real estate and infrastructure is also making major impacts in the progress of the hospitals.
Your company specialises in building hospitals. What do you think is the major challenge for government hospitals when it comes to matters of hygiene and infrastructure?
The infrastructure of a government hospitals are always much better planned than most other private building. It is generally designed and planned for the public at large and made affordable for the poor people of the country. However, due to huge footfall in any government hospital, the maintenance and cleanliness sometimes lag behind the required level. Also, the services and cleanliness of a hospital are different from any other building infrastructure, and, therefore, it needs specialised industry for services and building maintenance with proper hygiene.
There is a need to educate the patients, their relatives visiting the government hospitals and also to have more specialised agencies exclusively for the hospitals. Also, there is a need to plan the proper finishing for the hospitals which helps in maintaining the cleanliness.
What are the new projects you have taken up?
The major projects that HSCC has taken up in the last 3 years are the redevelopment of Safdarjung Hospital where more than 1300 beds have been added in the existing hospital.
Redevelopment of AIIMS, New Delhi where various super speciality centres like Mother and Child Care Centre, and OPD to cater more than 15,000 patients per day. New Emergency Block, a New Surgical Block, Geriatric Block, various doctors and Nursing hostels, parking for approximately 8,000 cars is being added in the Masjid Mod area.
Construction of Mother and Child block at AIIMS is a part of the Oversight Committee, set up for implementation of reservation policy for backwards classes and the subsequent augmentation of seats in central government institutions/autonomous institutes. In this regard, the EFC for augmenting existing facilities at AIIMS, New Delhi, for implementation of the recommendations of the Oversight Committee was approved in October 2010. The initial proposal originally approved was for a value of Rs 243 crores. Now, the revised projected project cost including all expenses is Rs 725.14 crore.
Another major project HSCC is the redevelopment of Lady Harding Medical College, redevelopment of Ram Mohan Lohia hospital and the establishment of a new National cancer institute at Jhajjar, Kalpana Chawla Medical College at Karnal, expansion of PGI, Chandigarh at Sangrur, the establishment of Cancer Institute at Kochi, redevelopment of Regional Medical College at Imphal etc. Also, the HSCC is doing over 100 hospitals both in India and abroad. We are doing hospitals in Sri Lanka, Myanmar, Bhutan, Laos, Afganistan, Bhutan, Bangladesh, Zimbabwe, and Nepal. Recently, we have completed a hospital in Nepal. That building had not a crack even in the devastating earthquake that ransacked most part of the Nepal. It is self-explanatory that HSCC doesn’t compromise with quality. The hospital in Nepal, built by HSCC, was inaugurated by Prime Minister Narendra Modi and is a 200-bedded hospital. Surprisingly, when quake had hit Nepal, there were about 2,000 patients inside the building and it turned out to be the safest structure in the neighbouring country during the natural calamity.
What is the corporate quality policy of the company? How is it different from its contemporaries?
It is different from the contemporaries in a way that we focus on the quality of our planning which involves the movement of patients and their relatives and visitors, movement of doctors, the medical and para-medical staff of the institutes. Planning of different types of OTs and ICUs, proper planning of parking, planning of patients, relatives stay, selection of material for the finishes of the building to keep the hygiene, planning of clean area, semi-clean area and dirty area, planning of different kind of services like gases manifold systems, kitchen, CSSD, laundry, ventilation etc. In these segments, the quality of HSCC would reflect and prove to be different from any of its contemporaries. The different OTs and ICUs, OPDs and diagnostics, etc. are planned in ways as per international standards. For example Neuro operation theatre (OT) is entirely different from an Orthopaedic OT. In the first 100 percent, fresh air is circulated and in the other only several air changes are required.
What is the collaboration with the Centre? Are you thinking of venturing into private hospitals?
Yes, HSCC is also thinking of venturing into private players in India and abroad. As per the collaboration with the Centre is concerned, the HSCC is involved in almost 90 per cent of the hospitals under the ambit of Central government, whether it’s about constructing a new one or renovating the existing hospitals.
What is the future of the hospital services in India?
The future of healthcare sector especially the hospital in India is very bright in comparison with the global trend. Our country is lagging much behind in terms of the requirement of infrastructure for building, equipment, manpower and their training, which are also the areas to address for the company. The beds available in India per 1,000 patients are approximately 0.9 against the developed countries where per 1,000 beds ratio is approximately 3 to 4.
The increase of beds in India means an increase in overall infrastructure, including buildings, equipment, and manpower. The per capita expenditure of government on health care is also increasing wherein out of pocket expenditure has to reduce like other developed countries and thereby resulting into major addition to infrastructure.