The Business Relationship Value in The Hospital Business

The Business Relationship Value in The Hospital Business

We understand business relationships as an interactive exchange activity between two organizations. The business relationship is in the meantime the organizational and management forms of the connections between the two organizations or among the involved people.

Based in this business relationship value concept an integrated business relationship value model has been developed.

It is to better understand behavior in their relationship with hospital and distributor. The hospitals are mostly state run institutions and the distributors are generally directly the national and international drugs manufactures or principals .

Their competition level approach on the local/national pharmaceutical industry and multinational pharmaceutical companies are generally acting on contractual and operational level competition and local pharmaceutical given generic drug manufacturers are competing at operational level.

The characteristic of the behaviour type is the importance of trust based on frequency of the personal contacts between hospital and drug distributor.

The Hospital Market

The drug purchase of hospitals represents a part of the pharmaceutical market. Approximately in Jabotabek 53% of the total pharmaceutical sales go to hospitals and this ratio seems to be constan in the last 5 years. Total active hospitals amount 170 hospitals in Jabotabek.

We examined 3 different factors, :

• Personal relationship which describe the “closing personal” with the hospital
• Satisfaction with the service , its mean that how speed the drug distributor to delivery their order.
• Smoothness of the relationship is about the routines developed in the relationship with the drug distributor which make it more simple.We indicate the hospitals category : Hospital A (Government) , B (Private) and C (Group) The different behaviour patterns of the 3 classification of the hospitals are depending on :

• The structure of the buying center of hospitals, and the power roles in the center

According to the role in the hospitals, it is the chief pharmacist duty to prepare the order, to deal with the order and to realize the drug purchase.

• The process of drug purchase

the basic list contains those drugs which are necessary for the everyday treatment in the hospital. This selection of drug means the basis for formulary management.

• Relationship with the drug distributor

Analysing the relationship with the drug distributor we have to make a different between the manufacturer /principals and a wholesaler as a distributor.

Donni Noviandi Rafdi

Dosen Marketing in BSI

Darell A Donovan

Rakha A Donovan