Strategy, Business Information & Analysis - Essay Example

Sri Lanka is one of the few countries in the world, providing free universal healthcare, including both education and healthcare services (Workinsrilanka.lk, n.d.). Development of the healthcare industry is one of the major government priorities and for achieving its goals; the Government has initiated the National Health Master Plan (2006-2016). Government support has contributed significantly to the rapid growth and development of both public and private sectors, improved quality of healthcare services and human capital base in the industry (Workinsrilanka.lk, n.d.). As of 2012, Sri Lanka had 593 government hospitals and 197 private hospitals.

The number of qualified doctors in total exceeded 17, 129 (approximately 1,187 persons per doctor) and the number of qualified nurses was 29, 871 (approximately 683 persons per nurse) (Workinsrilanka.lk, n.d.). In 2012, the total expenditure on health care both private and public was approximately US $89 per head, or 3.2% of GDP (The Economist Intelligence Unit, 2014). Even though the level of expenditure on health is low, Sri Lanka illustrates significant positive trends: increase of life expectancy to 75 years, and fall of mortality rate among children t 9.

6 cases per 1,000 births (The Economist Intelligence Unit, 2014). The quality of healthcare services provided in Sri Lanka is known around the world, as this country has high quality clinicians, adopts the latest innovations in medicine, science, and technology (Medicare, 2015). In order to have better understanding of the healthcare industry dynamic in Sri Lanka there was utilised the five forces model. There is a limited number of suppliers of medical devices, consumables and pharmaceutical items in Sri Lanka.

In addition to limited availability of suppliers, Sri Lankan’s healthcare industry faces with a problem of limited availability of medical devices, consumables and pharmaceutical items often causing stock out situations. Limited number of