Service-Profit Chain Analysis in Healthcare Services

Pratyush Ranjan; Peeyush Ranjan

doi:10.15415/jmrh.2018.42008

Authors

Pratyush Ranjan XLRI – Xavier School of Management, Jamshedpur
Peeyush Ranjan Hindu Rao Hospital, New Delhi

DOI:

https://doi.org/10.15415/jmrh.2018.42008

Keywords:

Customer Satisfaction, Employee Productivity, Hospital Management, Service-Profit Chain

Abstract

Focus on service-profit chain by organizations in the service sector has been found to be of crucial importance. Companies in varied sectors like banking, airlines, restaurants and healthcare have become industry leaders by focusing on aspects of service-profit chain. This paper presents an analysis of service-profit chain in the healthcare sector. Taking two examples of hospitals from India and one from abroad this paper brings out the importance of focusing on the service-profit chain in this sector. An analysis of the practices in these hospitals, with a major focus on Aravind Eye Hospital, will give a perspective of how these hospitals have focused on the service-profit chain and made them efficient and effective and have enhanced their customers’ satisfaction. Service-profit chain analysis can help healthcare organizations to be customer focused. It can motivate organizations to develop attractive value propositions for customers. It can also provide a warning to organizations that are neglecting the interests of employees. Overall, the service-profit chain provides a useful framework for healthcare organizations in developing their strategy as well as implementing day-to-day operations.

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