Narayana Hrudayalaya_Section C_Group 5

8/11/2019 Narayana Hrudayalaya_Section C_Group 5

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Narayana HrudayalyaHospitals

Presentation By:

Pankaj Tahilyani (13DM125)

Prakhar Jain (13DM130) Prashant Aggarwal (13DM133)

Raushan Singh (13DM147) Romil Dalal (13DM154)

Satyendra Kumar (13DM163)

The Pres


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Introduction


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SUPPLY CHAIN PRESENTATION I AUGUST 2014

Healthcare Industry

The healthcare sector in India is expected to grow at a CAGR of 15 per cent to touch US$ 158.2 billion in 20178.6 billion in 2012, according to a report by Equentis Capital.

In India, the diagnostics sector has been witnessing immense progress in innovative competencies and credibility


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Narayana Hrudayalaya Heart Hospital

The hospital has 6200 beds spread across 23 hospitals in14 cities (as of December 2013). It has plans to expand to30,000 beds in the coming seven to ten years.

It is known as a low cost and high quality Indianhealthcare service provider.

It has been bestowed with this title for its ability toreconcile quality, affordability and scale


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USP of NH


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Cost Minimization

Dual Principle: Highest quality at the lowest Cost Wal-martization of healthcare: Volume of procedures completed

allows the unit cost of surgery to be significantly decreased Dont sign long-term suppliers. Negotiate every purchase because

price in India are very flexible Instead of buying expensive machines, monthly rent is paid to

suppliers. Demand of reagents is high enough to make up profits forsuppliers

Calcutta hospital and NH made up approximately 10% of the cardiacmarket in India. Through bulk orders hospitals enjoys 30% - 35%discounts on medical supplies, the largest cost component

Comprehensive hospital management software for its operations,helps maintain minimum inventory

Generic medicines reduced the cost by approximately 8% - 10% Fixed staff salary reduced the revenue spending on salaries to 22% as

compared to industry standard of 60%


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The Insurance Scheme - Yeshasvini Dr. Shettys dream to cure the worlds poor for less than a dollar a day Yeshaswini health insurance programme provides coverage to two million

farmers Initially, when the scheme was launched, all a farmer had to do was to

contribute a premium of Rs5 per month with Rs2.50 subsidy from theGovernment of Karnataka in the first year

From the second year, the premium was increased to Rs10 per month To avail this scheme, the farmer had to be part of a co-operative society

for at least six months Around 16 lakh farmers enrolled in the first year and 3,500 members

availed free consultation in the first year 9,039 cashless surgeries were done in the first year, of this 657 were

cardiac In the second year, 21 lakh farmers enrolled, 32,174 availed free OPD

facility In the third year, 14.73 lakh members enrolled, 36,077 members availed

free OPD facility and 11,154 surgeries were done amounting to Rs 16.93crore


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Telemedicine

A specialist instruct another doctor who isoperating the patient in another city or region. it is

used when specialists is not able to reach andoperate the patient. telemedicine is useful inemergencies and immediate treatment .

When a patient visited a CCU, the GP first toECG which was transmitted to a specialist at or RTI. the specialist then diagnosed the condand advised the GP on the appropriate treatme

Dr. Shetty set up 9 coronary care units(CCUs)across India, linked to NH or rt. each CCU wasequipped with beds, medication, computers, ECGmachines, video conferencing devices andtechnical staff.

The project was supported by ISRO which adtelemedicine as a community project and provconnectivity for the CCU free of charge. Inaddition, Karnataka govt. planned to sponsorfurther 29 CCUs.

54,000 patients have beentreated through this program andmore than 5 Lac ECGs seen till

date.


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Mobile Cardiac Diagnostic Lab

Both NH and RTI also organized outreach camps for cardiacdiagnosis and care. Each weekend, two buses were sent out torural areas, up to 800 km away from the hospitals in Bangaloreand Kolkata.

The buses were outfitted with echocardiography equipment, atreadmill, a defibrillator, ECG machines, equipment needed forresuscitation in emergencies, and a generator to ensure themachines could be used in rural areas with irregular powersupply.

On average, each camp screened 400 people a day, none of

whom were required to pay either the hospital or the organizers. When a diagnosis indicated that the patient required medical

intervention, he was advised to visit NH or RTI, where the procedure was performed at or below cost price with help fromthe NH charitable trust.


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Training the next generation

Dr. Shettys solution to bridging the gap between the 18,000 doctors graduating from Indmedical schools each year and the 180 newly trained cardiologists and cardiac surgeons eachyear.

NH ran 19 postgraduate programs for doctors and other medical staff, including diplomasin Cardiac Thoracic Surgery, Cardiology and Medical Laboratory Technology.

The hospital also offered the countrys only formal training program for paediatric cardiacsurgery, reflecting the rich expertise of NHs doctors in paediatric care.

In 2005, NH was scheduled to offer Indias first Diploma in Cardiology, in collaboratiowith the Indira Gandhi National Open University (IGNOU).

Beyond training doctors, a separate department at the hospital coordinated the training ofnurses. The 700 nurses at NH were required to complete a year of training which includeda minimum six month period in a critical care unit.

To encourage students from poor remote areas who would benefit most from theseeducational opportunities, NH arranged to guarantee bank loans taken by the students tocover fees and living expenses.


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Treatment for all

Surplus gained from paying patients was used to subsidize procedures that were performed at or below,cost for patients who could not afford operation fees.

In addition, the hospital offered a scheme called Karuna Hrudaya, which allowed financially constrained patients to pay Rs. 65,000 (US$1,400) per OHS, with NH absorbing the remaining costs.

For patients who could not afford this package, the Narayana Hrudayalaya Trust, a charitable organizationwith offices within the hospital, helped to arrange funds from a general corpus or by specifically seekingdonations from a list of individuals and organizations


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Plan for Health City


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Following the success of NH, Dr. Shetty was keen to extend the concept of affordablehealthcare to other specialties with NH serving as the backbone hospital.

He offered this rationale: We have reached a plateau in cost-reduction by increasing ovolume of surgeries . . the yearly increase in procedures is now small but our resources arestill underutilized our machines, sterilization department, blood bank, etc. can be used bother hospitals within health city and this will drive unit costs even lower.

The plan, according to him, was to build a total of 10 hospitals in a common area, with eachhospital housing one or two specialties.

The hospitals would be self-sufficient within each specialty (thus each building would haveits own OTs, intensive care units, etc.) but would draw on common facilities such as blood banks and laboratories that were already established at NH.


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Health City

Cardiac Units

Emami National Institutefor Bone Marrow

Transplant

Noncardiac Units

Neurosurgery unitPlan for 10 m

each housspeci

Spine surBrain sur


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SWOT

Strength

1. Supportive higher management

2. Relatively cheaper cost of operations(operational excellence)3. Trusted Brand name

4. New Technology with world class Doctors

Weakness

1. Karuna Hrudya Package

2. High staff turnover

3. Maintaining customer service consideringexpansion plans

Opportunity

1. Fragmented market of health care

2. Health city expansion3. Rural market using Yeshaswini scheme

4. Training GP to handle emergency andnonintervention cardiology

Threat

1. Maintaining Karuna scheme in expansion

plans2. Support of highly qualified doctors inexpansion plans

3. Changing State Government.

4. Imitating of their operational excellenceby competitors.

SWOT


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Driver of Success to Narayana Hrudayalaya

Value Creation Network witLeveragingTechnology

Low Cost HighQuality

VolumeFlexibility

VolumeBargai

Pow

FullCapacity

Utilization

MinInventory &

QuickProcessing


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One mans Vision vs Fundamental Change in Healthcare Industry?

The condition of Healthcare industry in India before NH started:

All the above factors along with increasing number of patients were the guiding force behind e NH.

Dr. Devi Shetty wanted to prove that with advancement in technology, cost per unit can be broin healthcare industry and this concept helped him to make surgeries affordable to common ma Vision of one person can change the entire healthcare industry in the way it operates.

0.5 physicianper 1000

Corruption atGovernment

Hospitals

Skewed access toprivate healthcare


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