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  • Essay / Impact of Service Quality in Healthcare Sector...

    1.1 INTRODUCTION: Healthcare sector is one of the fastest growing sectors. It provides goods and services that help treat patients with curative, rehabilitative, preventive and palliative care. The Equentis report states that the healthcare sector is growing at a CAGR of 15 percent and reached $78.6 billion in 2012 and is expected to further increase to $158.2 billion by 2017. The factors Driving this growth are increasing income levels and easy access to health facilities. which are of high quality and concerned about personal health and hygiene. Even though there is growth in the healthcare sector, there are certain factors that are used to measure the quality of service in the healthcare sector, namely hospitals. India's liberalization and globalization policies have brought about a significant change in the healthcare scenario. Due to increasing awareness, patients, as consumers, expect high-quality healthcare services. Quality is considered an important factor when customers choose hospitals (Schuler and Lynch, 1990). Service quality can be divided into two components, namely technical quality and functional quality (Gronroos, 1984: Parasuraman et al., 1985: Lewis and Mitchel). , 1990). Technical quality is defined on the basis of procedures and technical details. Functional quality is defined as the way in which the service is delivered to the customer. In health care industries, patients generally consider functional aspects such as facilities, cleanliness, attitudes of hospital staff, etc., rather than technical aspects (Babakus and Boller, 1991). The research presents findings on the gap that exists between patient perception of service quality and management's expectations for quality...... middle of paper ...... and health insurance is expected to reach US$160 billion by 2017, according to Frost & Sullivan reports. India is witnessing considerable growth in the healthcare sector, thanks to its expansion in both the private and public sectors. According to a report by Grant Thornton India, the Indian medical devices and equipment market is expected to grow by around $7.8 billion by 2016. According to recent studies, patient aspirations are changing. Customers are becoming aware of their health needs, demanding less waiting time for their service, quick response, better quality of service and better availability of nearby healthcare units. These factors provide immense opportunity for healthcare industries to make their mark in India. Reports from Mckinsy and IDFC indicate that Indian healthcare sector will be worth $125 billion by 2019.