Narayana hospital summary PDF

Preview

Summary

Narayana Health is an Indian chain of multi-speciality hospitals, heart centres, and primary care facilities with its headquarters in Bengaluru, India. It was founded by Dr. Devi Shetty in the year 2000....

Description

CASE STUDY ANALYSIS REPORT ON NARAYANA HRUDAYALAYA HEART HOSPITAL: CARDIAC CARE FOR THE POOR.

BY BASTA BESHRA 320SM1003 MBA (2ND YEAR)

Narayana Hrudayalaya Heart Hospital: Cardiac Care for the Poor. Dr. Devi Shetty, was born in South India and studied medicine in Mangalore, India, he then trained and operated for six years at Guy’s Hospital in London. After which he returned and joined the Birla Heart Research Foundation and later cofounded Asia Heart Foundation (AHF). In 2001 Dr. Shetty founded the NH hospital in Bangalore with the generous help of his father in law the owner of Shankaranarayana Constructions (SNC). The hospital was build on land of 25 acres of land adjoining the Electronic City the building was offered on a 30 year lease to NH private Ltd, a private company owned by Dr. Shetty and his family, and equipments were been bought with bank loans backed by the family. Dr. Shetty vision was to provide health care to the masses at an affordable price. To achieve this goal he used the high number of patients, to make better use of equipments, they used full capacity of the equipments all time to reduce the per unit cost, instead of buying equipments renting them which further dropped the cost and use of large number of medication and use of reagents as bargaining chips to reduce the cost of reagents from venders sometimes medicines made up to 10 % of the surgery cost. This is how he started to reduce the costs of his operations and make the heath care more affordable. As price is a major factor in decision making of a purchase more and more people chose NH for health care further strengthening its strategy. This strategy was called “The Wall-martization of healthcare”. They started offering Karuna Hrudaya scheme, which allowed financially constrained patients to pay only 65,000 per OHS and NH absorbing the remaining costs. To sustain these practices they used the profits made from other operations and also followed many strategies to reduce the upkeep cost of the hospital like fixed salary of doctors which contributed to only 22% of total cost while comparatively others spent up to 60%, keeping up with the accounting on a daily basis to stop the hospital from running into losses. They introduced Telemedicine which used government infrastructure and personals to provide better diagnosis of the patients and detect heart problems in an early stage and keep the medical expenses low and recommending visit to NH hospital to the needed one as well as provide better emergency care, by working with NH doctors. They also started two mobile cardiac diagnostics lab to provide services to rural areas up to 800kms away from the hospital both with cardiologist and technicians for all the equipments to give best care. They would provide proper diagnosis and bring the critical patients with them to NH. Which helped them when they launched their Yeshasvini Insurance Scheme with government infrastructure, people already trusted them and many people joined them. This scheme enabled many poor farmers and their families to get the needed health care at just 5/- rs a month per person. And as mentioned before price is a major factor for purchase decision making with the high demand and low pricing it was a success, About 1.7 million farmer and their families register in the first year itself. In the first year they collected 969 lakhs and government released 450 lakhs. This enabled NH and other hospitals to tap into large market which was earlier not available to them. The total amount of claimed for surgeries that year was 1065 lakhs. One other method he thought of to reduce cost and provide health care to masses was to increase the supply to meet the growing demand of health care. His methods were very different from what the Indian health care system and one of the best example may be that unlike other health insurance even a sick person can register under Yeshasvini insurance

scheme and health care was a privilege only people with money could but he changed the system and brought heath care services to mere 5 rs a month letting the poor access to top heath care, with help of Karuna Hrudaya scheme they made health care possible for lower class people. His methods promoted full use of equipments, fixed salary of doctors leading to reduced hospital running costs, collaborating with other hospitals to influence the prices of medicine. India did have enough medical personal to sustain proper health care and the rate at which it was going up was not good enough so he started the project “Training the Next Generation” he started 19 Post Graduate programs for doctors and other medical staffs , NH offered India’s first Diploma in Cardiology in collaboration with the Indra Gandhi National Open University (IGNOU), In this program any MBBS qualified doctors could spent two years training at a recognized heart hospital to get the Diploma. NH had a separate department to train the nurses; the nurses trained at NH were regarded as highly skilled and even mentioned in news letter as Florence Nightingale. To encourage students from poor remote areas they offered guarantee bank loans which they could pay off by working at NH for two years. The increasing medical personal would also need infrastructure to support hence came in “Health City” here he planned to expand the hospital to 35 acres adding a neurosurgery unit, trauma hospital , states largest bone marrow transplant unit. The plan was to build total of 10 hospitals in a common area where every hospital had one or two specialties. He did all this while keeping the cost down and still maintaining the level of services they provided leading to the success of the company. Yes it could be adopting in developing countries, if their situation is similar to ours the chances of success would be probably higher. SWOT analysis of Narayana Hrudayalaya hospital

Strength

Ability to conduct so many operations Affordable health care Collaboration with other hospitals Telemedicine Yeshavini insurance scheme

Weakness

No new methods of cost reduction Lack of infrastructure

Opportunity

Building new infrastructure Branching to other medical specialties

Threat

other can follow the same strategy The high turnover rates...