Narayana Health Care

Mainali Gautam-19020841015
Marisetty Santosh Jyotsna-19020841016
Rohini Yadav-19020841027
Indian Health Landscape

2003:
 Indian Government spent approximately 1% of its GDP on public health care
 Overall expenditure on health – 5% of GDP (Asian average: 6.3%)
 85% of the Indian population and 47% of children under 3 years of age didn’t receive
enough nourishment – National Nutrition Monitoring Bureau
 15,000 hospitals and 6,00,000 physicians – well equipped health care system
 Number of physicians per 1,000 population: 0.5
 70% of doctors only in urban areas
 Government hospitals were underequipped and understaffed.
Indian Health Landscape

 Less than 14% of the population was supported by health insurance

 Medical Tourism
 1,50,000 foreign patients
 OHS would cost only $ 3,000 - $ 10,000 at the best Indian hospital as compared to
$1,50,000 in the U.K and $70,000 in USA
 2.4 million people needed heart surgery every year
 Only 60,000 surgeries were performed each year
 Approximately 25% of heart attacks occurred among the under 40 population
 Around 2,24,000 newborns in India were affected by heart disease every year
 Present Indian Landscape

 The healthcare market can increase three fold to Rs 8.6 trillion (US$ 133.44 billion) by 2022.
 India is experiencing 22-25 per cent growth in medical tourism and the industry is expected to
reach US$ 9 billion by 2020.
 There is a significant scope for enhancing healthcare services considering that healthcare
spending as a percentage of Gross Domestic Product (GDP) is rising.
 The Government of India is planning to increase public health spending to 2.5 per cent of the
country's GDP by 2025.
Factors Driving Growth

 Major factors driving the growth in the sector include :

1. Increasing population
2. Growing lifestyle related health issues
3. Cheaper costs for treatment
4. Trust in medical tourism
5. Improving health insurance penetration
6. Increasing disposable income
7. Government initiatives
8. Focus on Public Private Partnership (PPP) models
Present Scenario in Indian Health Care
Industry

 According to the government's formula

 One sub-centre for every 5,000 people (3,000 in hilly areas)
 One primary health center for every 30,000 people (20,000 in hilly areas)
 One community health center for every 120,000 people (80,000 in hilly areas)
 According to the Global Atlas on cardiovascular disease prevention and control 2016,
death rate due to ischemic heart disease (a condition which is characterized by reduced
blood supply of the heart muscle) in India is 165.8 per 100,000. Around 116.4 per 100,
000 people in India die due to cerebrovascular diseases
About the Hospital

 God’s Compassionate Home

 Situated in Bangalore, Karnataka
 Founded in 2001, by Dr. Devi Shetty
 Aims at providing medical treatment to the poor
 Vision : “Affordable Quality Healthcare for the Masses Worldwide”
 Mission : “A dream to making quality healthcare accessible to the masses worldwide”
 Around 40% of all treatments were pediatric
Unique Aspects

 Focused on volumes
 Performed 19 OHS & 25 catherization procedures everyday, almost 8 times the average at other Indian
Hospitals
 500 blood tests on a machine everyday, as compared to other hospitals which run 2 tests on a machine
 Negotiate better deals with suppliers- no long term contracts
 Took machines on monthly rent and paid for reagents used to run the machine
 Management software which helped maintain minimum inventory & quicker processing of tests
 Used generic drugs which were 80% cheaper than the market rate for similar medication
 Spent only 22% of its revenue on staff salaries.
 Doctors got fixed salary and not % of the revenue
History of NH
Operational Strategy

 Wal-martization
 Telemedicine
 Mobile cardiac diagnostic lab
 Yeshasvini – Insurance Scheme
Wal- Martization of Health Care

 Break even price for an Open Heart Surgery:

Rs.90,000 – adults
Rs. 1,30,000- children
 Basic package including surgery & hospitalization charges: Rs. 1,10,000 – cheapest in the
country
 Treatment and care same irrespective of general or private ward
 Karuna Hrudayalaya: Financially constrained patients could pay Rs. 65, 000 for OHS and the rest
will be paid by NH
 Narayana Hrudayalaya Trust: For patients who couldn’t afford to pay anything, this trust would
help them in getting funds via donations “ Never turn away a patient for lack of funds ”
Telemedicine

 Telemedicine is a surgeon or a specialist instruct another doctor who is operating the patient.
 It is basically used when a specialist is not able to reach and operate. When a general
practitioner feels that a heart patient need for immediate treatment, s/he may use telemedicine
 The state government planned to sponsor 29 more CCUs.
 Between 2001 and July 2004, the NH facility performed 9,591 tele-consultations and the
CCUs had 4,077 inpatients
 Both NH and RTI started outreach campus for cardiac diagnosis and care. Each weekend, two
buses were sent out to rural areas, up to 800 kilometers in order to give best possible help
onsite
Mobile Cardiac Diagnostic Lab (MCDLs)

 Organised outreach camps for cardiac diagnosis and care.

 800 kms of distance within the range of MCDLs from node hospitals.
 Buses were outfitted with all equipments needed for treatment.
 Camps were organised by local associations such as Lions club or Rotary club.
 Only when medical intervention are required, patients were advised to visit NH or
RTI.
Yeshaswini

 Yeshasvini NH started 19 postgraduate courses.

 In 2005, collaborate with Indira Gandhi National Open University (IGNOU) and
scheduled to offer India’s first diploma in cardiology. Dr. Shetty developed an insurance
program “Yeshasvini”.
 The team of NH set up an insurance scheme or 1.7 million farmers and their families in
Karnataka
Success Story Of Yeshasvini

 Low cost treatments

 By early 2005,nearly 2.5 million members of state corporation enrolled.
 Prompted Dr.Shetty and his team to consider new avenues for similar programmes such as
insurance schemes for teachers in Karnataka.
 It also prompted Dr.shetty to organize self help groups in the state.
 This program was a part of Dr.Shetty’s dream-”To cure the world’s poor for less tha a
dollar a day.”
Milestone Achievements

 Conducts 40 heart surgeries every day

 Expertise in liver transplants on babies less than 10 kg weight with 95% success rate.
 First heart hospital in Asia to Implant an artificial heart.
 Performed combined kidney and pancreas transplant, offers formal training program for
pediatric cardiac surgery.
 Narayana Foundation conducts 61 training programs and is short-listed by the University
Grant Commission (UGC) for the status of a Deemed University.
 Thrombosis Research Institute, Bangalore a division of Narayana Health is working
towards discovering a vaccine to prevent heart attack. The Institute has come up with
markers to diagnose heart disease early.
SWOT Analysis

S W O T
High volume of Limited approach Expansion Steady Competitors can
surgery Poor technology sectorial growth copy
Affordable infrastructure Air ambulance Attrition rate
New technology
Collaborations
Insurance scheme
Way Ahead

 Mission of making India become the first country in the world to disassociate healthcare
from affluence
 Efficient usage of Machine Learning in making predictions about the surgeries
 Change in the Equipment Procurement System
 Expansion in rural areas
 Privatization of Insurance scheme
THANK
YOU!