Quality Health Care and AffordabilityAn Outcome of Compassionate Heart and Business Mind

Presented by:Abhilash Chauhan

Amarjeet SinghAsim Abinash

Krishna Bollojula

CHALLENGES: HEALTH CARE IN INDIA

In India, the dual pressures of poverty and a large population make effective healthcare delivery especially challenging.

There is no national health system and health spending accounts for 4.2 per cent of GDP, compared to 9.8 per cent of GDP in the UK

Although 72 per cent of India’s population lives in rural areas, 80 per cent of doctors, 75 per cent of dispensaries and 60 per cent of hospitals are in urban areas.

Increasing the health resources of the nation requires substantial investment. To achieve the target of two beds per 1,000 population by 2025, an additional 1.75 million beds are needed.

To reach a ratio of one medical doctor per 1,000 individuals by 2025, an additional 700,000 doctors will be required

NARAYANA HEALTH Narayana Health, a private multi-

specialty hospital chain in India, headquartered in Bangalore.

Founded in the Y ear 2001, by Dr. Devi Shetty.

Known for low cost and high quality Indian healthcare service provider because of its ability to reconcile quality, affordability and scale.

HOW QUALITY & AFFORDABLE HEALTH CARE IS PROVIDED IN NH ?

In 1990 the cost of cardiac surgery usually costed Rs 1.50 lakh. Most of the people, in need of cardiac surgery couldn’t afford it

NH brought the cost of surgery down to $1500 compared to $1,44,000 in US and $27,000 in Mexico.

They proved that Poor can access quality health care from world renowned doctors.

BRIEF ABOUT HOW IT ALL STARTED ??

Dr. Devi Prasad Shetty, when working with Birla Heart Research Foundation in

1990's, he would see over 100 heart patients daily.

Most needed surgery but never came back for it. This intrigued him.

He soon found out that the high cost of cardiac surgery (Rs 1.50 lakh then) was the

reason.

"It was clear costs had to come down," says Dr Shetty. And he says "I was certain of

one thing though - charity is not scalable while a sound business model is"

The world renowned surgeon then started Narayana Hrudayalaya at Bangalore in

2001 with 280 beds.

Now, they grown upto a 26-hospital network with 6,900 beds across 16 cities

employing 13,000 people and 1,500 doctors.

ABOUT THE HOSPITAL

It is called as "Gods Compassionate Home".

Founded by World Renowned Heart Surgeon Dr. Devi Prasad Shetty.

Situated in Bangalore, Karnataka Aims to provide Affordable and quality

health care to the poor. Dr. Shetty has transformed open heart

surgery to mass production using industrial organization's execution playbook.

Took machines on monthly rent and paid for reagents used to run the machines.

Minimum inventory and quick processing of tests.

Spent only 22%of total revenue for staff salaries. Dr. Devi Shetty

Source: Economic Times

INTENSIVE WORK AT NH

Increasing Production It has so far performed over 100,000

cardiac surgeries and 250,000 cath lab procedures.

The group performs 150 major surgeries (including 44 cardiac surgeries) daily.

NH says about 12 per cent of all cardiac surgeries done in the country are performed at its hospitals and 50 per cent of its patients are from the economically-weaker sections.

Affordable Prices NH's average cost of a bypass surgery is

$1,500 (Rs 90,000) compared to $1,44,000 in the US, $27,000 in Mexico and $14,800 in Colombia. Interestingly, NH's cost of cardiac surgery is significantly lower than what it was in India 13 years ago.

Quality Healthcare The lower cost has not come at the expense of

quality. Incidence of bedsores after a cardiac surgery is globally anywhere between eight and 40 per cent. At NH, it has been almost zero in the last four years.

By the way, when you perform open heart surgery on an assembly line, not only does the cost go down but quality goes up. Performing a medical procedure repeatedly improves a doctor's skill and reduces errors.

Financially Strong The focus on both cost and quality has not hurt

NH's financials either. While NH's revenues grew by over 200 per cent in the last five years to Rs 827.35 crore in 2012/13. Private equity funds JPMorgan and Pine Bridge have picked up a 24 percent stake in NH. They clearly believe NH is creating long-term value for investors.

MICRO INSURANCE: YESHASWINI

"Yeshaswini“ scheme launched in 2002 in association with the Karnataka state government

Covering more than 3 million farmers

Premium: 18 rupees per month from Rs 5 at inception

Government infrastructure like post offices collect monthly premiums, track payments and issue health insurance cards

85,000 farmers had free medical treatment

22,000 farmers had free surgeries

1400 farmers had heart surgeries

About Yeshaswini: Yeshaswini in 20 months:

TELEMEDICINE

Collaboration with ISRO One of the largest telemedicine

centers in the world Extends to 19 countries Leveraging technology to reach

out to masses through 22 centers

Treated over 53,000 heart patients in remote locations of India

Telemedicine being practiced at Narayana Hrudayalaya, Bangalore

Telemedicine center with CCU at Agartala,

Tripura

Source: NH

Trans Telephonic ECG Network

Mobile Diagnostic Lab

MEDICAL TOURISM: VISION OF NH–TO PROVIDE AFFORDABLE HEALTHCARE WORLDWIDE

Medical tourism: Provision of cost effective private medical care in collaboration with the tourism industry.

Certified by National Accreditation Board for Hospitals & Health care Providers (NABH)

Set up a center for excellence: medical tourism facility of NH in the Cayman Islands, a British Overseas Territory

The hospital, Health City Cayman Islands, has opened with a 104-bed tertiary-care hospital in Grand Cayman, providing services in cardiac surgery, cardiology and orthopedics

Future Plans: Expand to a 2,000-bed facility, and is expected to provide a broader array of services including neurology, oncology and other cutting edge tertiary care services

A medical school is also planned to be built on the site

Innovative factors that have contributed to NH

Unique Health City Model Telemedicine Yeshaswini Low Cost Surgical Hospital Model Increasing life span of medical equipment Daily Profit and Loss tracking Cloud ERP system Staff and Patient feedback system Scholarship for Medical studies Investment towards training and development Asset Light Strategy

THANK-YOU

NARAYANA HRUDALAYA, BANGALORE