Lifespring Hospitals’ Business Operations Model

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MARKETING MANAGEMENT – II
ASSIGNMENT NO.: 02
LIFESPRING HOSPITALS

SUBMITTED TO:
PROF. SAIRA STEPHANOS
SUBMITTED BY:
ATREYEE CHATERJEE
P/MN/R/11/032

DATE:16th NOVEMBER, 2011

LIFESPRING HOSPITAL
Lifespring hospital is a chain of small hospitals providing low-income clients in India with access to maternal and child health care services, joined the Business Call to Action with its commitment to provide an estimated 82,000 Indian women and their families with access to quality health care. Over the next five years, LifeSpring will increase the number of hospitals serving mothers and children throughout India from nine to 200, which will improve overall standards of care and reduce rates of maternal and childhood deaths LifeSpring is a joint venture between HLL and New York-based private social investor Acumen Fund. The healthcare chain’s model of small hospitals, which accommodate between 20- 25 beds each, operates on a cross-subsidy model of tiered pricing. Through this system, customers have the option to choose to give birth in a general ward, in a semi-private room, or private room. LifeSpring’s goals:

• Open 200 hospitals by 2015
• Expand geographic reach to additional states across India • Provide 82,000 women with high-quality maternity and reproductive health services

BUSINESS MODEL OF LIFESPRING HOSPITAL

India has one of the highest rates of maternal mortality in the world. With 100,000 pregnancy-related deaths each year and an equal number of women suffering from moderate to severe complications due to childbirth, India’s maternal mortality rate is 6 times worse than China’s, 8 times worse than Cuba’s, and 14 times worse than Chile’s. Most of these deaths and complications could be averted by providing an adequate level of pre- and post-natal care. Unfortunately, in much of India, public hospitals are often overburdened and space in delivery rooms limited, making it difficult to provide anything but basic level care to pregnant women. Private clinics offer good quality care, but high prices put it out of reach for most lower-income families. As a result, approximately 57 percent of births in India are unattended by a skilled health worker. In 2005, Anant Kumar, CEO of LifeSpring Hospitals, was working for Hindustan Latex Limited (now HLL Lifecare), one of the world’s largest maker of condoms. In this capacity, Kumar traveled to hospitals around the country visiting with women who had just undergone childbirth to learn about family planning practices and contraceptive use. Over time, it became apparent that women were not satisfied with the level of care received at government hospitals and many felt like their experience would have been better at a private clinic. Based upon this feedback, Kumar approached the board members of HLL with a proposal to open a clinic providing high-quality, affordable maternal and child healthcare services to low-income families in Hyderabad’s sprawling urban slums. The clinic would bridge the divide between the low-cost, but over stressed government hospitals and the high-quality, high-price private clinics.

Set Up & Build
• Locate existing or newly constructed facilities in target communities to rent • Develop relationship with community
• Recruit and hire hospital staff and equip hospitals
Operations
• Provide standardized healthcare services
• Conduct marketing and community outreach activities
• Set business targets for first two years of operations Monitoring & Evaluation
• Engage in clinical quality improvement projects
• Monitor costs to ensure affordability
• Incorporate customer feedback into hospital operations

LIFESPRING HOSPITALS’ BUSINESS OPERATIONS MODEL

Assessment
• Analyze market needs and existing conditions
• Assess feasibility of replicating model within new locations • Finalize hospital locations

MARKETING APPROACH OF LIFESPRING HOSPITAL

LifeSpring’s marketing approach...
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