1. Political Factors
Sri Lankan government has an impact on how an
industry such as healthcare performs. Hospitals and other medical service
providers need to adhere to issues such as tax policies. This is also to
address other issues like customer projection and employment regulations. These
policies can be huge for the industry. If there are extremely strong tax policies
and employment regulations hospitals and other private health care providers
find difficulty making profit. In Sri Lanka, VAT is applicable for medical
instruments, channeling and that is passing to the patients form the hospitals.
However, pharmaceuticals and medical investigations do not include VAT.
New elected Sri Lankan government come with a
new drug policy where medicine with higher priced drugs being assigned a lower
margin as Sri Lankan government to fix import drug prices to drug price control.
Health care industry is affected with current
economic condition and other factors like unemployment, inflation, tastes and
preferences of the consumers, interest rates and buying power of consumers. All
these factors have an effect on the performance of organizations in the
Country’s rapid development of the health
care system and medical tourism has opened the gates to flow more foreign
dollars. The Health care industry is mostly benefitted by fast infrastructure
development and transport facilities like domestic highway network and air
transport. They are supporting efficient patient mobilization from far cities
to Colombo for their treatments. In recent years we have observed rising per
capita income and higher disposable income of Sri Lankans.
However, country is having lack of resources
for expansion of the industry. Most of the Cardiac thoracic surgeons in main
private hospitals were brought from India and we still see the support we get
from India on laboratory investigations.
Increasing trend of obtaining private health
care as a result of increasing living standard of people. Hospital like
Asiri should ensure that it is aware of the norms and values of the population
it serves. Social Cultural factors comprise the demographics and culture of the
consumers served by health care providers in the industry.
Increased Healthcare needs with aging
population where 9% of the country’s population was 65 years of age at the end
of 2014.8 Technology has developed and this has brought more access
to data. There are electronic accesses to everything in hospitals. Patients can
use their mobile devices and apps to reach consultants and their lab reports.
Moreover, adding social networking for reviews driving healthcare
accountability. Patient’s higher demand for efficiency, accuracy and low cost
regulate the prices in the industry other than government policies.
In Asiri Hospitals, there are more number of
Sinhala speaking doctors than Tamil speakers. Therefore, most of the Tamil
speaking population find it is difficult to communicate with consultants and
obtain right treatments.
Demographics include the numerical
characteristics of the population that the industry serves. Social factors
influence the performance of companies in the industry. Organizations that
mind, the culture of consumers do well in their operations. This is to avoid
any violation of those values. This could be a strong marketing strategy for a
long term period as culture of any population rare changes
Shortage of skilled labor in the industry
restrict the fast development of hospitals. This is basically due to migration
of highly skilled workers as they get better salary in develop contries.
Aging population, decreasing rate of
fertility, Gender service preferences, Quality before cost preferences
Higher rate of growth in technology reduces
the cost of transactions. E.g. online banking and payment systems. (Promotions
of credit cards for hospitals) In the clinical field, high-end radiology,
nuclear medicine and laboratory equipments have brought more sensitive results
and enhanced the diagnostics. Asiri surgical hospital is having modern
technology which is helping consultants to perform their treatments well. Usage
of highly technological equipment reduces the overhead cost of the hospital.
Use of social media marketing reduces the promotional cost.
On the marketing prospective, novelty and
resourcefulness is at the heart of technological advancements. Asiri engages in
the medical treatments as well as medical diagnostics provide excellent
opportunities for the company.
Office automation and computerization of
patient history has made easier for treatments.
Outsourcing web based channeling services
i.e. E-Channeling, DOC990 has given easier access to the patient to channel a
consultant. This has reduced the extra cost patient had to spend earlier to
channel a doctor. Asiri Laboratory has a network of satellite laboratories all
over the country proving service to the distance areas and online laboratory
report viewing facility also brings convenience to the patient.
This includes long term protection concerns
that have an impact on businesses in the industry. Sri
Lankan waste disposal Law was implemented to regulate disposal of hazardous
waste such as infected, cytotoxic (chemotherapy) and clinical wastes. Energy consumption regulations had place to
Efficient and green emphasis on large scale facilities. Use of energy efficient
lighting and backup generators in case of emergency. Thus, the environmental aspect could serve to
benefit or hinder the performance of organizations.
Legal factors include the procedures and
regulations that oversee all privet hospitals and other health care providers .
This includes safety and health laws that organizations in healthcare provision
must follow. There are competitive regulations where collusion with
other private hospitals and price fixing is restricted. This is to control the standard prices and
ethical practice though out the country. Moreover, most of the healthcare
providers in the industry would wish that there is the elimination of some of
the regulations that exist. This is because they view them as hindrances to
their performance. The existence of these laws is, however, essential as it
regulates the operations and ensures provision of standard products and
services. Health and safety regulations are maintained by the
Ministry of Health to provide an optimum service to the citizens. This has
brought standard services and better treatment facilities to the society. There are competitive regulations where
collusion with other private hospitals and price fixing is restricted. This is to control the standard prices and
ethical practice though out the country.
Organizations must bear
industrial relations that are handed down by the state and federal
governments. There are strong labor laws
and monitoring carried out.