Gaining Efficiency in Italian Hospital system
Aravind Eye Care Hospital is a chain of one of the most popular eye hospital in the world which employs a model based on McDonalds’ business model to increase the efficiency and effectiveness of operations. This article analyses the effectiveness of this system and its possible implementation to the Italian Health Care System.
Pursuing efficiency in the Health Systems-the way of McDonalds
Intelligence and capability are not enough. There must also be the joy of doing something beautiful.
- Dr.G.Venkataswamy
Italy, considered as one of the healthiest countries with the average life expectancy of 81.1 years, also has one of the longest waiting periods for providing health services to its citizens. This is indisputably evident from the fact that it takes 365 days for an average Italian to get a mammogram in the Public health care services and a surgical operation planned today is most likely to be 550 days away. Even though the Italian Health Care System had undergone some major reforms in 1990s by the introduction of entrepreneurialism through the New Public Management System, there are still inefficiencies in the health services which need proper attention.
Strangely, the solution can be sought through one of the most noted business model from India, with one the lowest life expectancy rates. Aravind Eye Hospital inspired by the business model of McDonalds has been able to achieve high rate of efficiency in health services. An average Aravind surgeon performs 2000 surgeries per year against the global average of 500. An average eye operation in the western hospital takes 30 minutes but in Aravind it takes only 10. This remarkable efficiency is achieved by differentiating services into smaller work units and then, integrating these work units with high precision and efficiency.
The underlying idea is to achieve cost effectiveness and efficiency through standardization and ‘engineering’ surgeries for high volume production. The services of the hospital are
Pursuing efficiency in the Health Systems-the way of McDonalds
Intelligence and capability are not enough. There must also be the joy of doing something beautiful.
- Dr.G.Venkataswamy
Italy, considered as one of the healthiest countries with the average life expectancy of 81.1 years, also has one of the longest waiting periods for providing health services to its citizens. This is indisputably evident from the fact that it takes 365 days for an average Italian to get a mammogram in the Public health care services and a surgical operation planned today is most likely to be 550 days away. Even though the Italian Health Care System had undergone some major reforms in 1990s by the introduction of entrepreneurialism through the New Public Management System, there are still inefficiencies in the health services which need proper attention.
Strangely, the solution can be sought through one of the most noted business model from India, with one the lowest life expectancy rates. Aravind Eye Hospital inspired by the business model of McDonalds has been able to achieve high rate of efficiency in health services. An average Aravind surgeon performs 2000 surgeries per year against the global average of 500. An average eye operation in the western hospital takes 30 minutes but in Aravind it takes only 10. This remarkable efficiency is achieved by differentiating services into smaller work units and then, integrating these work units with high precision and efficiency.
The underlying idea is to achieve cost effectiveness and efficiency through standardization and ‘engineering’ surgeries for high volume production. The services of the hospital are