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Home > Cover Story

Healthcare sector foresees great demand for administrators
Usha Holla - Mumbai

Hospital administrators are in great demand. In fact, they are the most sought-after professionals in the healthcare sector today after doctors.

Thanks to rapid corporatisation, a lot of medical graduates are taking up further specialisation in hospital administration. Even non-medical professionals are increasingly taking the mantle of hospital administration. According to consulting and recruiting firm Hosmac, roughly 300 students are imparted training in hospital administration and healthcare management every year through 16 recognised institutes across the country. Around 90 per cent of them are readily absorbed by hospitals.

The trend of recruiting business managers and not essentially a practising medical professional was initiated by corporate hospitals. Now, even trust-based hospitals are following suit and experts point out that it is a matter of time before government hospitals too adopt the practice.

Premier institutes running courses for hospital administration and healthcare management across the country vouch that it was never so good for their students what with various health organisations now making a beeline at campus interviews. ‘‘It is mainly the corporate and trust hospitals which are recruiting professionals to manage their administrative operations,’’ says Dr C A K Yesudian, head Dept. of Health Services Studies, Tata Institute of Social Sciences (TISS), Mumbai. A top favourite among healthcare recruiters, TISS had nearly 90 per cent of its students taken up within three days of its week-long placement programme held in January 2002.

According to Dr S V N Reddy, principal Apollo Institute of Hospital Administration (AIHA), Hyderabad, it is not only hospitals which require management pros. “A whole lot of specialised avenues such as lifestyle clinics, emergency medicine units, pharmaceutical firms, hospital information systems, e-health ventures, credit rating firms, NGOs and health insurance now require trained manpower specialised in hospital administration.”

The remuneration packages offered to fresh graduates is attractive. “A management level cadre earns anywhere between Rs 2.5-3 lakh per annum, while middle and lower level cadre earn between Rs 2-2.5 lakh,’’ says Dr Yesudian. That’s certainly good money for greenhorns when compared with remuneration offered in other industries.

Freshers should focus more on gaining practical knowledge at the workplace than dreaming big salary packages, feels Dr Satish Ratnaparkhi, directorGarware Institute of Career Education and Development. The institute is one of the recent entrants into healthcare management education arena with its first batch of students to pass out in June 2002.

Sensing better opportunities in this sector, more and more people from non-medical background are now enrolling for healthcare management and administration courses. In fact, a majority of students at the Indian Institute of Health Management and Research (IIHMR), Jaipur belong to non-medical category, sources point out. “Managers with a medical background command higher price in the market,” confirms Dr Reddy. Even though the industry has a preference for such people, non-medicos are putting a brave face on it. ‘‘Having a medical background definitely helps in better understanding of the hospital environment initially, but even non-medico can excel as what matters ultimately is how good are your managerial skills,’’ says an MBA aspiring to be a hospital administrator.

Institutes conducting these courses are particular about one aspect making necessary modifications in the syllabus as per the requirements of the healthcare industry. ‘‘Therefore now we are emphasising more on topics like IT, quality and finance management in our syllabi,’’ Dr Yesudian says. He further explained that besides theory and internship at hospitals, a special five-week course has now been added at TISS wherein students visit emerging areas like healthcare consultancy firms and TPAs.

Apollo Institute has revised its syllabus for the third time recently. Says Dr Reddy, ‘‘Since our institute is affiliated to Osmania University, we are awaiting their approval. The revised syllabus contains many new thrust areas like health insurance, entrepreneurship development, waste management, disaster management, supply chain management, customer relationship management, HIS to name a few.’’ According to Dr Ratnaparkhi, bringing in certain upgradation in the syllabus at least once in three years is essential.

The industry too seems to be upbeat with the availability of efficient manpower to handle managerial tasks in healthcare services. Says Anil V Kamath, VP-business development, Wockhardt Hospitals Ltd., ‘‘There is a growing demand for managers in the healthcare sector due to increasing professionalisation of services. And the huge demand-supply gap in this segment is opening better avenues for freshers.’’ He further noted that as a majority of professionals today are first level managers, 4-5 years down the line, the industry would benefit from strong force of well-experienced managers.

‘‘Grading of healthcare institutions is an area with lot of excitement and challenges for healthcare managers and they can learn newer concepts here,’’ says Arun Panicker, director - Corporate Ratings, Crisil.

Rating agencies like Crisil and Icra have absorbed many freshers in the recent past as healthcare consultants. Panicker admitted that interns as well as freshers were of great help during the company’s grading process. ‘‘Moreover an administrator or a manager gets to do those assignments in this segment that are not typical of their conventional role,’’ he added.

According to George Mathew Molakal, MD ICAN Medicare Pvt Ltd, a Pune-based TPA, doctors and administrators/managers form a crucial link in TPA operations. They can be assigned tasks like gate keeping functions, claim audit - technical evaluations, claim investigations, etc. ‘‘ICAN has employed several hospital administration staff in its processing centers across India. They are highly necessary for each and every TPA,’’ Molakal says.

To bridge the huge demand-supply gap in the professional management segment, experts feel that more teaching facilities should be set up. And that explains the reason behind dubious hospital administration and healthcare management courses being floated by some institutes in the recent past. Dr Yesudian says that hospitals are very choosy about the kind of people they want to recruit and the quality will separate wheat from chaff.

‘‘The market is wise enough to recognise the right candidates. Therefore dubious programmes will die a natural death in due course of time,’’ Dr Ratnaparkhi opined.

According to a survey by the Association of British Healthcare Industries (ABHI) in early 2000, there are over 15,000 hospitals in India. And more numbers are frequently being added up indicating that there is a tremendous opportunity for administrators in hospital sector alone for years to come not to mention related areas. Therefore it is the right time to take a plunge into the healthcare administration and management arena.

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