Market Study

Palembang
Agenda
 Overview  Competitors Analysis
 Economic  Charitas Hospital
 Demographic  Myria Hospital
 Market Potential  Pusri Hospital
 Expected Demand  M. Husein Hospital
 Expected Supply  Siti Khadijah Hospital
 Market Potential  Conclusion
 Community Survey
 About the Respondents
 Healthcare Facility Usage
 Preferred Hospitals
 Overview

Market Study - Palembang

Projection of constant population growth in Palembang mark
out possible growth of demands in healthcare services.
Population Projection Palembang Male and Female Population
1.8 1.77 1.6% Projection - Palembang

Growth Rate (%pa)

Millions

1.8 1.52% 1.4%

Persons (no.) Thousands

1.7 1.2% 1,000

887
887
838
835
1.7 1.12% 1.0% 900

786
782
1.6 0.8%

733
728
800
1.6 0.6%
Persons (no.)

1.5 1.46 0.4% 700

1.5 0.2% 600
1.4 0.0%

2010

2015

2020

2025
2010
2012
2014
2016
2018
2020
2022
2024
Source: Dalam Angka and BPS Source: Dalam Angka and BPS Female Male

 The population is expected to increase from  Male population is projected to increase from
1,460,750 in 2010 to 1,774,541 in 2025. 733,000 in 2010, to 887,000 in 2025, with
average growth rate 1.28%
 The population growth rate is expected to drop
from 1.52% in 2010 to 1.12% in 2025.  Female population is projected to increase from
728,000 in 2010 to 887,000 in 2025, with
 The average growth rate would be 1.32% pa. average growth rate 1.33%
 The steadily growing population underpins the
demand in health care services.
Ob-gyn services, as well as cardiology, neurology and diabetic
services in Palembang, would be very likely to have considerable
demands 15 years ahead.
Age Distribution Projection  We divided the population in five age-groups, as
Palembang shown in the graph on the left.
 The size of the youngest age-group, 0-14, is expected
100% 53,245 to reduced from approximately 27% (392,895) in
115,074
90%163,041 2010 to 24% (394,708) in 2025.
285,560
80%564,489  The proportion 15 to 24 years is forecast to shrink
from 19% (279,467) in 2010 to 16% (266,253) in
70% 588,572
2025.
60%
 The 25-49 age-group would also reduced, from 39%
50% (564,489) in 2010 to 36% (588,572) in 2025.
40%279,467  On the other hand, the proportion 50-plus is
266,253 expected to increase. The 50-64 would grow from
30%
11% (163,041) in 2010 to 17% (285,560) in 2025.
20%392,895 394,708 While the proportion of 65+ almost doubled from
10% 4% (53,245) in 2010 to 7% (115,074) in 2025.
0%  Despite the slight reduced proportion, the increasing
number of 0-14 still happen in considerable number.
2023
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022

2024
2025

So, there will be a continuing need for Obgyn

0-14 15-24 25-49 50-64 65+ services.
 The increasing number of seniors would drive the
Source: Dalam Angka and BPS
demand for the cardiology, neurology and diabetic
services.
 GRDP Palembang and GRDP Per Capita Palembang increased
with constant growth of 6.7% pa and 4.8% pa.
GRDP - Palembang GRDP Per Capita
(Constant Price 2007) Palembang
12.00 11.77
GRDP (Rp. Trillion)

18 8.0%

Growth Rate (%pa)

GRDP Per Capita

16.94 11.32

(Rp. Million)
16.04 6.0% 10.75
16 11.00
14.99 10.22
14.00 4.0%
10.00 9.78
14 13.09 2.0%
12 0.0% 9.00
2005 2006 2007 2008 2009 2005 2006 2007 2008 2009

Source: Dalam Angka and BPS Source: Dalam Angka and BPS

 Gross Regional Domestic Product (GRDP)
measures the amount of economic activity in a
region.
 GRDP of Palembang grew from Rp. 13.09 trillion
(2005) to Rp. 16.94 trillion (2009).
 The growth rate fluctuated between 5.6% and
7.1%. The average was 6.7% pa over the five
years.
 GRDP per capita measures how much each
person contributes to the region’s economy.
 In 2005, each person contributed Rp. 9.78
million. That amount grew to Rp. 11.77 million
by 2009.
 The average growth rate was only 4.8% pa. We
suspect rapidly growing population moderated
the GRDP per capita growth.
The growth of tertiary sector gives a good chance for services
industry to develop such as hospital.
Contribution to GRDP by Sector
 As one of the secondary sectors,
Palembang (2004 - 2009)
manufacturing is the top-1contributors with
Manufacturing 36.6% 36.6% of the Palembang’s GRDP.
Trade 19.9%
Trans / Comm 14.6%  But as a whole, the secondary sectors
Service 12.0% (manufacturing, construction and utilities)
Construction 7.9% contributes 45.9%, below the tertiary sectors
Finance 6.8% (trans/comm, service, trading and finance) that
Utilities 1.4%
is 53.3%.
Agriculture 0.7%
Mining 0.0%  Trans / comm, one of the tertiary sectors,
0% 10% 20% 30% 40% leading the industry growth at a rapid 13.1%
Source: Dalam Angka and BPS pa between 2004 to 2009.
Average Industry Growth Rate  Calculated as a whole, tertiary sectors is also
Palembang (2004 - 2009) leads with 35.9% than the secondary sectors
Trans / Comm 13.1% that is 18.1%, in the average industry growth
Finance 8.4% rate.
Construction 7.8% Conclusion
Service 7.2%
Trade 7.2%  The economic base of the city is moving
Utilities 6.3% towards the tertiary sector.
Manufacturing 4.0%
Agriculture 2.2%  This movement is very supportive for the
Mining 0.0% development of services industry, such as
hospital.
0.0% 5.0% 10.0% 15.0%
Source: Dalam Angka and BPS
Constant growth of inflation rate during May ‘10 to May ‘11,
provides possibility for healthcare business to grow healthily.
Monthly Inflation Rate Consumer Price Index
Palembang Palembang

126.21

125.47
2.0%
127

123.15
1.40%
1.5% 125
Inflation Rate (%pm)

120.15
123
1.0%

119.12
Index
121

117.77
0.5%

116.43
119

115.59
0.0% 117
Apr-09

Apr-10

Apr-11
Jul-09
Oct-09

Jul-10
Oct-10
Jan-09

Jan-10

Jan-11
115
-0.5%

Apr-09

Oct-09

Apr-10

Oct-10

Apr-11
Jul-09

Jul-10
Jan-09

Jan-10

Jan-11
-1.0% -0.77%
Source: BPS
Source: BPS

 The consumer price index gradually increased

 The inflation rate has fluctuated between -0.77% from 115. 59 in Jan-09 to 125.47 in May-11.
and 1.4% for the period from Jan-09 to May-11.
 Annual inflation rate for May-11 was 5.42%.
 On average, the price rose by 0.31% per month Slightly below national rate (5.98% by May ’11).
over the 29-month period.
 This facts provides future possibility for
healthcare business to grow healthily.
Summary
 Projection of population in Palembang expected to increase from 1,460,750 in 2010 to 1,774,541 in
2025, with average growth rate at 1.31% pa. This mark out possible growth of demands in healthcare
services.
 The size of the youngest age-group, 0-14, is expected reduced from approximately 27% (392,895) in
2010 to 24% (394,708) in 2025, but despite the slight reduce proportion, the increasing numbers
of 0-14 still happen in considerable number. It will provide possibility of sustainable need for Obgyn
service, up to the next 15 years.
 While 50-64 would grow from 11% (163,041) in 2010 to 17% (285,560) in 2025. And the
proportion of 65+ almost doubled from 4% (53,245) in 2010 to 7% (115,074) in 2025. This
condition would drive the demand for cardiology, neurology and diabetic services.
 The general GRDP and GRDP Per Capita of Palembang increased with constant growth of 6.7% pa
and 4.8% pa. We suspect that population growth in Palembang moderates the growth of GRDP per
capita.
 The economic base of the city is moving towards the tertiary sectors from the perspective of the
contribution to GRDP by industrial sectors, yet from the average industry growth rate.
 The growth of the tertiary sectors is a good predisposition for the development of services industry,
such as hospital.
 Annual inflation rate for May-11 was 5.42%. Slightly below national rate (5.98% by May ’11).
 This facts provide future possibility for healthcare business to grow healthily.
Market Potential

Market Study - Palembang

The catchment area is a 10-km zone around the CGC
Palembang
 We determined the
catchment area based on the
result of the community
survey.
 Most of the respondents did
not travel outside of the 10
km zone for medical
treatments.
 Most of the hospitals in
Banjarmasin are within the 10
km zone, south-east of CGC
Palembang.
 We expect the population in the catchment area to
grow steadily over the forecast period (2011-2026).
 Population is the key demand driver for
healthcare.
 Catchment area (CA) is the 10-km zone.
 Population in the CA grew at an average of 1.74% Expected Population
1,100

1,067
pa from 2000 to 2010. Catchment Area

1,049
 But based on Population Projection in Palembang,

1,032
Population (no.) Thousands
we expect the CA would grow around 1.71% pa. 1,050

1,015
over the forecast period.

998
981
1,000

965
Expected Population Growth Rate

949
Catchment Area

933
950

917
1.76%

902
1.74%
Growth Rate (%pa)

1.74%

887
900

872
1.72%

857
1.70%

842
1.68% 850

828
1.66% 1.67%
1.64%
1.62% 800
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2018
2011
2012
2013
2014
2015
2016
2017

2019
2020
2021
2022
2023
2024
2025
2026
The number of inpatients is expected to grow with certainty
along with increasing population and better health awareness.
 The number of inpatients is determined by  Multiplying the population with the IMR gives
population and inpatient morbidity rate (IMR). the number of inpatients.
 IMR for respondents and Palembang are 23.5%  We expect the number of inpatient to grow
and 9%, respectively.
from 57,944 in 2011 to 86,709 in 2026.
 For our demand projection, we adopted an IMR
of 7.0% for 2011, which is expected to grow to
8.1% by 2026.

Expected Expected Inpatients

Inpatient Morbidity Rate Catchment Area
Catchment Area
8.5%
8.1% 90,000 86,709
Morbidity Rate (%pa)

8.0% 80,000

Persons (no.)
7.5% 70,000

57,944
7.0% 60,000
7.0%
6.5% 50,000

2023
2024
2025
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022

2026
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
The demand of hospital beds is expected to grow steadily with
increasing number of inpatients and reducing ALOS.
 Average length of stay (ALOS) and bed
occupancy rate (BOR) together determine the
number of beds required by the inpatients.
 We expect the BOR to maintain an effective
rate of 75%.
 The ALOS should reduce with the advance of
medicine, thus drop from 4.5 days in 2011 to 3.87
days in 2026.
 Following formula shows how to calculate the
expected bed demand in the catchment area.
Inpatient ALOS
Demand
BOR 365
 We estimate that the bed demand would grow
from 952 (2011) to 1,226 (2026).

Expected ALOS Expected Bed Demand

Catchment Area Catchment Area
4.60 4.50 1,250 1,226

4.40 1,200
1,150
Days (no.)

4.20

Beds (no.)
4.00 1,100
3.80 1,050
3.87 1,000
3.60 952
3.40 950
900
2016
2011
2012
2013
2014
2015

2017
2018
2019
2020
2021
2022
2023
2024
2025
2026

2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
Since expected person per bed is constant, healthcare business
in Palembang is in constant intensive competition.
 Supply of hospital beds is driven by
Expected Bed Supply
 Development of new hospitals
Catchment Area
 Capacity change of existing hospitals.
3,500

Beds (no.)
 There are seven hospitals in the catchment area 2,735
2,585
providing 1,835 beds for the community. 2,435
2,500
 For simplicity, we assumed that the capacity of 1,835
the existing hospitals would remain the same 1,500
over the forecast period, 2011 to 2026.

2016

2024
2011
2012
2013
2014
2015

2017
2018
2019
2020
2021
2022
2023

2025
2026
 We assume that averagely, one new 150 bed
hospital could be developed every four years
Expected Persons per Bed
 Supply of beds would therefore be 2,285 (2013), Catchment Area
2,435 (2017), 2,585 (2021) and 2,735 (2025).
550
 Predictably there will be constant trend of bed Persons (no.)
expected in CA. This indicates constant over 451
supply of beds over the forecast period 450
395 396 399 390
 Since expected person per bed is constant,
350
healthcare business in Palembang is in constant

2015

2023
2011
2012
2013
2014

2016
2017
2018
2019
2020
2021
2022

2024
2025
2026
intensive competition.
We expect enough supply of beds to meet the demand
in the catchment area over the forecast period.
Expected Market Potential - Catchment Area
1,600
1,509
1,500
1,399
1,400 1,344 1,326
1,282 1,265
1,300
Beds (no.)

1,200

1,100

1,000
883
900

800

2023
2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2024

2025

2026
 Market potential is calculated by subtracting the expected demand from the expected supply of beds.
 Our calculation shows that the expected supply exceed the expected demand for the forecast
period (market potential is a positive number).
Summary
 The catchment area (CA) is a 10-km zone around CGC Palembang covering the central city of
Palembang.
 For estimating the demand of beds for the period from 2011 to 2026, we assumed:
 Population would grow from 828,000 to 1,067,000.
 Inpatient morbidity rate would increase from 7% to 8.1%.
 Average length of stay (ALOS) would reduce from 4.5 days to 3.87 days.

 Bed occupancy rate would maintain at 75%.

 Expected bed demand would grow from 952 (2011) to 1,226 (2026).
 For estimating the supply of beds for the period of 2011 to 2026, we assumed:
 One new hospital could be built every four years, resulting of 4 new hospitals by 2026, plus the two ongoing project of
Hermina and Siloam.
 Each new hospital would have a capacity of 150 beds.

 Expected bed supply would grow from 1,835 (2011) to 2,735 (2026).
 Predictably there will be constant trend of bed expected in CA. It could be a sign of limited chance
for healthcare business.
 New prospective hospital within CA. should consider their capability to gain enough market share.
Community Survey

Market Study - Palembang

We received 51 valid survey responses from Citra Grand City in
Palembang.
Used medical facilities
in the past 12 months Gender Comparison
54%
53%
53%
65% 62.7%
52%
60%
51% 55%
Persons (%)

50.0% 50.0%
50% 50%

Persons (%)
49% 45%
40% 37.3%
48%
47% 35%
47%
30%
46% 25%
45% 20%
Yes No Female Male
Respondents Palembang

 We received 51 valid survey responses from  Male respondents is approximately reach 2-3rd
Citra Garden estate. section, while the rest is female.
 Just below half of the respondents had used  There is a significant difference in the gender
medical facilities in the past 12 months. distribution (tcal: 1.86 and ta:0.05: 1.67).
The average age of the respondents (exclude 0-20 years old age
group) is the same at the Palembang Kota.

 There is no significant difference in the age
distribution between sample and Palembang
population(tcal: -0.12and ta:0.05: 1.67).
 Average of respondents and Palembang are 39.3 and
39.4, respectively (exclude 0-20 yo).
 There is significant difference in MHHE between
sample and Palembang (tcal: 3.91 and ta:0.05: 1.67).
 The average MHHE for the sample and
Palembang is 2.73m and 1.70m, respectively.
Viewed in general, the outpatient morbidity rate is higher than
the inpatient morbidity rate.

Sample = 36

 Survey found the inpatient morbidity rate of respondent is higher (23.5%) compared to the
Palembang population (9%).
 While the outpatient morbidity rate of respondents is lower (47.1%) compared to the Palembang
population (66.1%).
Most of hospitals located in the central city, aproximately 5 to
10 Km to the south east area from CGC Palembang.

 Most of hospitals located in the

central city, aproximately 5 to 10
Km to the south east area from
CGC Palembang.
 Myria is the only hospital located
within 0 to 5 Km from CGC
Palembang.
 While within 5 to 10 Km, located 5
Hospitals:
 RS Sriwijaya Eye Center

 RS Bunda

 RS M. Husein

 RS Charitas

 RS Pelabuhan Boom Baru

 Pusri is the only hospital located

more than10 Km from CGC
Palembang.
There is substantial different in the market share of the top-4
hospital for outpatient services.
Most Used Outpatient Facilities  Charitas is the leader in the outpatient market,
capturing just under half of the market (45%).
 The nearest competitor of Charitas are M
RS Charitas 15 (45%) Husein, Myria and Pusri. However, these
hospitals have significantly less market share.
 M Husein has the second highest market share of
RS M Husein 4 (12%)
12%, but that is only around a quarter of that of
Charitas.
 Pusri is the forth most used hospital for
outpatient services. However, it market share is
RS Myria 3 (9%) only 1/7 of Charitas.
Conclusion:
 Charitas is the market leader for hospital’s
RS Pusri 2 (6%) outpatient service.

0 5 10 15 20
Sample =24
Charitas significantly led the market of outpatient compared to
other four hospitals.

Respond Respond  From our other survey experiences,

Facility Zone respondents prefer to use hospital that is
(%) (#)
closer to their homes for outpatient services.
 So it should be Myria as the most preferred
RS Charitas 45% 15 5-10 km hospital for outpatient services, but that is not
the case.
RS M  Respondents are willing to travel further, to
12% 4 5-10 km use Charitas or M. Husein.
Husein
 It is also interesting to note that M. Husein is
closer to the estate than Charitas.
RS Myria 9% 3 0-5 km
 Therefore, we can see that distance is not a
primary concern for the respondents for
outpatient services.
RS Pusri 6% 2 > 15 km
Conclusion
 It could be that Charitas has such a strong
brand that respondents are willing to travel
Total 73% 24
further to get to it.
 Charitas significantly led the inpatient market of the
respondents of the estate.

Most Used Inpatient Facilities  Charitas led more than half of the
inpatient market.
 M Husein, and Pelabuhan Boom Baru
RS Charitas 10 (67%)
are the closest competitor to
Charitas, but their market shares are
RS M Husein 2 (13%)
significantly far below.
RS Pelabuhan Boom Baru 1 (7%)  Domination of Charitas in inpatient
market share is at least 5 times
RS Pasar Rebo 1 (7%) compare to its other competitor.
Conclusion:
RS Myria 1 (7%)
 Charitas significantly led the inpatient
0 5 10 15 market of the respondents of the
estate.
Sample =15
Within the inpatient business, Charitas is a tough competitor
for the other hospitals.
Respond Respond  The inpatient market share of 2nd up to 5th
Facility Zone Beds
(%) (#) ranked hospitals, is not more than one-
fifth section of Charitas.
Charitas 67% 10 5-10 km 360  Charitas looks very significantly led the
market of inpatient, compared to the rest
of hospitals.
M. Husein 13% 2 5-10 km 830
Conclusion:
 Within the inpatient business, Charitas is a
Myria 7% 1 0-5 km 85 tough competitor for other hospitals.

Pasar Rebo 7% 1 >15 km 336

Pelabuhan Boom
7% 1 10-15 km 58
Baru

Total 73% 15 1395

Charitas is market leader in inpatient and outpatient business,
yet also the leader of the market of most preferred hospital.
Top-6 Most Preferred Hospitals  Charitas led more than half proportion of
most preferred hospital.
 Proportion of Charitas as most preferred
RS Charitas 16
hospital, is at least 5 times larger compared
(64%)
to the other hospitals.
RS Myria 3
(12%)  Charitas and Myria is the only hospital
which facilities of inpatient and outpatient
RS Mata Sriwijaya Eye
Centre
2
(8%)
were used by respondents, and become
most preferred hospitals as well.
RS Pusri 1 (4%) Conclusion:
 Charitas is market leader in inpatient and
RS Pasar Rebo 1 (4%) outpatient business, yet also the leader of
most preferred hospital.
RS Bunda 1 (4%)

0 5 10 15 20

Sample:25
Respondents are appeared to put non medical issue as primary
reason in choosing their preferred hospitals.
Reasons for Preferred Hospitals Most of the reason for preferred
hospitals based on non medical aspects
(75%).
Medical aspects only as much as 25% of
the reasons.
Service 9
Doctor who supposed to be considered
Circumstances 6
as the most important role player in
hospital, is not considered as the main
Facility 3
reason of choosing the most preferred
hospitals.
Distance 2 Conclusion:

 Respondents are appeared to put non

Referred 2 Type Changes medical issue as primary reason in
Non-medical 75% choosing their preferred hospitals.
Price 1 Medical 25%
None 0%
Doctors 1 Total 100%

0 1 2 3 4 5 6 7 8 9 10

Sample = 25
Charitas is the only hospital which simultaneously being
selected by females and males, while other hospitals are not.
Preferred Hospitals Preferred Hospitals
Females Males

RS Charitas 7
RS Charitas 9

RS Myria 3

RS Mata Sriwijaya 1 RS Mata Sriwijaya 1

RS Pasar Rebo 1

RS Pusri 1
RS Bunda 1

Sample = 25 Sample = 25
0 2 4 6 8 10 0 2 4 6 8
Conclusion:
 Charitas is the only hospital which simultaneously being selected by females and males, while
other hospitals are not.
Females put their 1st reason of choosing their preferred hospital
on circumstances, while male hospital’s service.
Reasons for Preferred Hospital Reasons for Preferred Hospital
Females Males

Circumstances 4 Service 7

Referred 2 Circumstances 2

Facility 2
Service 2
Distance 1
Distance 1
Price 1

Facility 1 Doctors 1

Sample =25 0 1 2 3 4 5 Sample = 25 0 2 4 6 8

Conclusion:
 Females put their 1st reason of choosing their preferred hospital on circumstances, because they
perceived that there’s no better choice.
 While male put their 1st reason of choosing their preferred hospital due to their consciousness of
hospital’s service.
 But half of the reason being choose by female and male appeared same, unless the order.
 Result shows respondents have more desire in medical
improvements as it’s definite nature of hospitals.
Changes desired for preferred hospitals Majority of changes desired, is medical
aspects (55%).
While the rest of changes desired, is in
Facilities 25% non-medical aspects (45%).

Parking 20% Conclusion:

Result shows respondents have more
Doctor 20%
needs in medical improvements.
This could be good chance for new
Service 15%
proposed hospitals to put medical
aspects as center of excellence, which
Others 10% should be the nature of hospitals.
Type Changes
Nurses 5% Non-medical 45%
Medical 55%
None 0%
Equipment 5% Total 100%

0% 10% 20% 30%

Sample = 25
Involvement of nurses and doctors needs to be considered as
serious factors in developing hospital’s customer service.
Most important Regarding the top-3:
customer service person
Nurse perceived to be the most important
in a hospital
customer service person in hospital (1st rank),
with 42.11% proportion.
Nurse 16 42.11%
Tough placed in the 3rd place, doctor still has
considerable proportion (18.42%).
Others 11 28.95%
The 2nd place occupied by non specific person,
with 28.95% proportion.
Doctor 7 18.42%
Conclusion
Medical Staff 3 7.89%  For proposed new hospitals, involvement of
nurse and doctor needs to be considered as
Paramedics 1 2.63% serious factor in developing hospital’s customer
service.
0% 20% 40% 60%  No specific conclusion can be inferred from 2nd
rank, because there’s no specific person
mentioned.

Sample=38
Summary – Consumer Preferences
 The respondents and the population of Palembang kota have considerable OMR rate of 47.1%
and 66.1%. This could support hospital business in Palembang in managing OP market share.
 Usually, proximity to hospitals is one of most important determinants to lead outpatient or
inpatient market share. But Charitas might be an exclusion, because it is the only hospital
which dominantly lead outpatient and inpatient market, while other hospitals within the same
area , or even the closer one, is not.
 Those facts above are possibly due to good reputation of Charitas, since result shows that
Charitas’ domination in outpatient and inpatient services followed by its domination as most
preferred hospital.
 Thus, Charitas is obviously a very tough competitor for your new proposed hospital.
 Viewed generally from the reasons in choosing their preferred hospital, respondents are
appeared to put non medical issue as the major reasons than medical issue.
 While from each range of HHE, namely in Rupiah: <2 mill, 2-5 mill, and 5-7.5 mill, services is
also the primary reasons in choosing preferred hospital.
Summary – Consumer Preferences
(continued)
 From changes desired for preferred hospital, result shows respondents have more desire in
medical improvements.
 This could be a good chance for new proposed hospital to put medical aspects as center of
excellence, which should be the nature of hospitals.
 While viewed from most important customer service person in hospital, nurse perceived to
be the 1st rank with 42.11% proportion, and doctor -tough placed in the 3rd place- has
considerable proportion of 18.42%.
 It should be a sign that for proposed new hospitals, that involvement of nurses and doctors
needs to be considered as serious factor in developing hospital. Especially in developing its
customer service factor.
Summary – About the hospitals
 Charitas is a private hospital with the largest market share for inpatient and outpatients. It is
also being elected as the most preferred hospital by the respondent. Generally speaking, it is a
dominant competitor for every new proposed hospitals.

 Myria is a private hospital which has second largest market share for inpatient and outpatient
services, yet being choose most preferred hospital according to the respondents. The things
happened due to several reasons namely: service, distance and doctor.

 Sriwijaya Eye Center is a private hospital located in 5-10Km zone. Being chosen as most
preferred hospital, this hospital gain 3rd rank with 8% proportion.
Competitors Analysis

Market Study - Palembang

 Competitors Analysis
Charitas Hospital
Hospital Profile – Charitas Hospital
Type General

Capacity 360 beds

Zone 5-10 km

Established 1926

Address Jl. Jend. Sudirman 1054

Palembang
Sumatera Selatan 30129

Class Price
Suite Room 1,500,000
VIP 1,000,000
Class 1A 600,000
Class 1B 450,000
Class 1C 350,000
Class 2A 175,000
Class 2B 120,000
Class 3 45,000 – 85,000
Rating – Charitas Hospital
Statements SD D N A SA
Doctors had good expertise 6.7% 0.0% 33.3% 40.0% 20.0%
Doctors were easy to communicate with 6.7% 6.7% 46.7% 26.7% 13.3%
I trust the advice that the doctors gave me 0.0% 6.7% 46.7% 40.0% 6.7%
Nurses served with dedication 6.7% 26.7% 33.3% 33.3% 0.0%
Nurses were easy to communicate with 6.7% 26.7% 33.3% 33.3% 0.0%
Customer service I received was good 6.7% 33.3% 46.7% 13.3% 0.0%
Hospital had complete medical equipment 6.7% 20.0% 26.7% 46.7% 0.0%
Hospital had the medical services that I need 6.7% 13.3% 26.7% 46.7% 6.7%
Condition of the hospital building was good 6.7% 13.3% 40.0% 40.0% 0.0%
Price was competitive 13.3% 53.3% 20.0% 13.3% 0.0%
Outpatient area was comfortable 13.3% 26.7% 40.0% 20.0% 0.0%
KEY: (REDS: unusually low score within the column; WHITES: normal score within the column ; GREEN: unusually high score
within the column)
Analysis of Rating - Charitas Hospital
 There’s unusually high score who strongly agree with doctor’s expertise and doctor's
communication. Also unusually low score who strongly disagree / disagree with doctor’s
expertise and doctor's trustworthiness. These aspects suggest that Charitas has a good
doctors.
 On the other side, there’s unusually low score who can’t decide with hospital’s price, and
unusually high score who strongly disagree / disagree with price and outpatient facility. This fact
suggest that people is not completely satisfy with price and OP facility.
 We concluded that doctors as the strength of Charitas, while price and OP facility are
Charitas’ need of improvement.
Strength & Weaknesses – Charitas Hospital
Reasons for Choosing Desired Changes
(Strength) (Weakness)

Service 5 Parking 4

Circumstan
4
ces Facilities 4

Facility 3
Doctors 3
Referred 2

Service 2
Distance 1

0 2 4 6 0 1 2 3 4 5

Persons (#)
Sample: 15 Sample: 13
Brand Image – Charitas Hospital
We asked the respondents to describe their preferred hospital. The following are selected
examples of their descriptions.
No Comments
1 Lumayan bagus dibandingkan RS yang lain.
2 Pelayanan terstruktur dan terorganisasi dengan baik, mutu dokter cukup lumayan.
3 RS Charitas lebih baik dari pada RS yang lain.
4 RS ini masih yang terbaik diantara RS swasta yang ada di Palembang.
5 RS yang masih paling baik di Palembang, walaupun menurut saya harus ada RS yang lebih baik.
6 Rumah sakit tersebut sebagai rumah sakit terbaik di Palembang saat ini.
7 Rumah sakit tersebut terbaik untuk wilayah Palembang.
8 Rumah sakit yang paling mendingan dibanding RS yang lain.
9 Saya akan membagi pengalaman saya selama berobat di RS Charitas dengan teman saya.
10 Tidak bisa dideskripsikan karena saat ini belum ada RS yang lebih baik dari RS tsb.
11 Dokter disana memiliki pelayanan medis yang baik Hanya RS tersebutlah yang sudah dikenal
masyarakat luas di Palembang.
 Competitors Analysis
Myria Hospital
Hospital Profile – Myria Hospital
Type General

Capacity 85

Zone 0-5 km

Opened 1957
Address Jalan Kolonel Burlian
Palembang
Tlp: 0711 411-610

Class Price

VIP 325,000

Class 1 225,000

Class 2A 110,000

Class 2B 75,000

Class 3 35,000
Rating – Myria Hospital

Statements SD D N A SA
Doctors had good expertise 0 0 1 2 0
Doctors were easy to communicate with 0 0 1 1 1
I trust the advice that the doctors gave me 0 0 0 3 0
Nurses served with dedication 0 0 1 2 0
Nurses were easy to communicate with 0 0 1 2 0
Customer service I received was good 0 0 0 3 0
Hospital had complete medical equipment 0 0 1 2 0
Hospital had the medical services that I need 0 0 2 1 0
Condition of the hospital building was good 0 0 2 1 0
Price was competitive 0 0 1 1 1
Outpatient area was comfortable 0 0 1 2 0

KEY: (REDS: unusually low score within the column; WHITES: normal score within the column ; GREEN: unusually high score
within the column)
Analysis of Rating
Myria Hospital
From above rating we can see that there’s:
 Low respond from respondents about Myria Hospital.
 Unusually high score who strongly agree / agree with doctor's communication, price, doctor's
trustworthiness and customer service. These indicates that Myria had good doctors and
competitive price.
 Unusually low score who agree with medical service and hospital building. Also unusually high
score who can’t decide with medical services and hospital building. These indicates that
people are not completely satisfied with Myria’s medical service and hospital building.
 Thus, doctor and price should be considered as strength of Myria. While medical service and
hospital building are Myria’s needs of improvement.
Strength & Weakness– Myria Hospital
Reasons for Choosing Desired Changes
(Strength) (Weakness)

Service 1
Facilities

Doctors 1

Equipment

Distance 1

0 1 2 0 1 2
Sample: 2
Sample: 3
Brand Image – Myria Hospital
We asked the respondents to describe their preferred hospital. The following are selected
examples of their descriptions.
No Comment
1 Fasilitas cukup baik, pelayanan dokter baik, bangunan sempit.

2 Jarak dekat dengan rumah, mudah di akses, pelayanan & kelengkapan cukup memadai,
tarif relatif terjangkau.
3 Lokasi dekat. Harga kompetitif/Murah
 Competitors Analysis
Pusri Hospital
Hospital Profile – Pusri Hospital
Type General

Capacity 120

Zone > 15 km

Opened 1973
Address Jl. Mayor Zen Palembang

Class Price
VIP 450,000
Utama 350,000
Class 1 250,000
Class 2 125,000
Class 3 60,000
Rating – Pusri Hospital
Statements SD D N A SA
Doctors had good expertise 0 0 1 2 0
Doctors were easy to communicate with 0 0 1 1 1
I trust the advice that the doctors gave me 0 0 0 3 0
Nurses served with dedication 0 0 1 2 0
Nurses were easy to communicate with 0 0 1 2 0
Customer service I received was good 0 0 0 3 0
Hospital had complete medical equipment 0 0 1 2 0
Hospital had the medical services that I need 0 0 2 1 0
Condition of the hospital building was good 0 0 2 1 0
Price was competitive 0 0 1 1 1
Outpatient area was comfortable 0 0 1 2 0

KEY: (REDS: unusually low score within the column; WHITES: normal score within the column ; GREEN: unusually high score
within the column)
Analysis of Rating
Pusri Hospital
From above rating we can see that there’s:
 Low respond from respondents about Pusri Hospital.
 Unusually high score who strongly agree / agree with doctor's communication, price, doctor's
trustworthiness, and customer service. This suggest that doctor, customer service, and price in
Pusri are good.
 Unusually low score who agree with medical service and hospital building. Also unusually high
score who can’t decide with medical service and hospital building. These indicates that people
are still not completely satisfy with Pusri’s medical service and hospital building.
 Thus, doctor, customer service and price are the strength of Pusri. While medical service and
hospital building is Pusri’s need of improvement.
Strength & Weakness– Pusri Hospital
Reasons for Choosing Desired Changes
(Strength) (Weakness)

Service Others

0 1 2 0 1 2
Sample: 1
Sample: 1
Brand Image – Pusri Hospital
We asked the respondents to describe their preferred hospital. The following are selected
examples of their descriptions.

No Comment
1 RS Pusri jika dideskripsikan dari segi lokasi, sangat mudah u/ dicapai (segala
angkutan umum ada). U/ kondisi kenyamanan, lumayan nyaman.
 Competitors Analysis
Dr. Mohammad Hoesin Hospital
Hospital Profile – Dr. Mohammad Hoesin Hospital
Type General Hospital

Capacity 830

Zone 5-10km

Opened 1953 ( 1997, RSMH)

Address Jalan Jenderal sudirman
Palembang
Tlp 0711 354088

Class Price
VIP Utama 400,000 – 500,000
VIP Khusus 300,000 – 400,000
Class 1 A 225,000 – 300.000
Class I B 175,000 – 225,000
Class 2 125,000 – 175,000
Class 3 32,500 – 125,000
KEY: Prices above are the estimated prices
Hospital Profile – Dr. Mohammad Hoesin Hospital
Doctors
Specialties
(#)
Penyakit Dalam 25
Jantung & Kardiovaskuler 5
Penyakit Syaraf 6
THT 5
Kulit & Kelamin 8
Mata 11
Penyakit Bedah 11
Radiologi 6
Rehab medik 2
Penyakit Jiwa 2
Psikologi 2
Patologi anatomi 7
Bedah Syaraf 2
Penyakit anak 14
Kebidanan & Kandungan 12
Gigi 6
Total 124
 Competitors Analysis
Siti Khadijah Hospital
Hospital Profile – Siti Khadijah Hospital
Type General

Capacity 200

Zone 5-10 km

Opened 14 Desember 1974

Address Jl. Demang Lebar Daun Lorong Pakjo

Class Price
VIP Utama 400,000
VIP Khusus 300,000
Class 1 A 225,000
Class I B 175,000
Class 2 125,000
Class 3 32,500
Hospital Profile – Siti Khadijah Hospital
Specialties Doctors (#)

THT 3
Jantung 2
Paru-paru 2
Jiwa 1
Kulit & Kelamin 1
Anaestesi 2
Radiologi 2
Laboratorium 1
Umum 4
Gigi 1
Psikologi 1
Total doctor 20
Summary
Charitas Hospital
 This hospital actually is an expensive hospital compare to other, yet still this hospital able to
dominate the market share of OP, IP and being choose as most preferred hospital simultaneously.
 Services and circumstances are the top-2 reasons for choosing this hospital. These non medical
aspects would be the strengths of Charitas.
 On the other side, parking and facilities are the top-2 aspects that respondents wants to be
improved by Charitas. Therefore, these blended medical and non medical factors would be the
weaknesses of Charitas.
 This hospital is the toughest competitor to defeat for other hospitals.
Myria Hospital
 This hospital placed at 2nd rank as most preferred hospital with12% proportion.
 Possessed only 1/5 of Charitas as most preferred hospital, this hospital still could gain OP and IP
market shares. People might use and choose this hospital due to the close distance and more
affordable price.
 3 strength aspects of Myria hospital are doctor, distance and service.
 While 2 weakness aspects of Myria are facilities and equipments. These aspects is need to be
improved by Myria according to the respondents.
Summary
Pusri Hospital
 Pusri is a general hospital and one of the government owned corporation.
 Tough its located more than 10 Km zone, this hospital still being chosen as most preferred
due to its accessibility.
 Services considered as the strength of this hospital.
 But there’s no specific aspect(s) mentioned as the weakness(es) of the hospital.
M. Husein Hospital
 M Husein is general hospital owned by kota.
 This hospital has 14 specialist clinics, with 1 dental clinic and 1 psychology clinic.
 Total doctors assigned in those clinics are 124 persons.
 The top-3 of those clinics (based on highest number of doctor assigned) are internist,
paediatric, and obgyn.
Siti Khadijah
 Siti Khadijah is a general hospital.
 Located at 5-10 Km zone.
 This hospital has 6 specialist clinics, with 1 dental clinic and 1 psychology clinic.
 Total doctors assigned in those clinics are 13 persons.
 Conclusion

Market Study - Palembang

Conclusion
 Viewed from projection of population and GRDP aspect, we could say that the macro
economic of this area is actually prospective for healthcare business. But since there will be
constant trend of bed expected in CA. It could be a sign that chance for healthcare business
to develop is actually limited .

 In the city, Charitas would be the only, yet tough competitor as a healthcare operator. We
could see that longer distance of Charitas is not even the biggest consideration for people to
go for medication. However through this survey, this hospital also reflecting its strong brand.

 If Charitas is the only competitor, than Palembang may still be considered as prospective place
to develop new healthcare business. Tough in a least preferred one. But there’s another issue
to consider, that is, Mitra and Siloam will soon join the competition. We could say that in the
future healthcare business would have a very intense competition.

 Based on those things above we don’t suggest Palembang as an area to build some new
healthcare business.