Narayana Hrudayalaya
Q1 &2
Would you describe this heart hospital as successful? Explain why.
If successful, what were the elements that made it successful? If not yet successful, what else should NH be doing?
“A dream of making quality healthcare available to the masses worldwide”
Narayana Hrudayalaya was established by Dr. Devi Prasad Shetty in 2001 with this mission. Its main focus was to provide affordable cardiac care to the masses. It has followed a hybrid strategy of attracting paying patients by virtue of its reputation for high quality combined with a relentless focus on lowering its costs of operations whenever possible. In 2004, the proportion of patients who paid NH 's full price to those that cannot afford to pay was about 60:40. Following this strategy, they priced their general ward patients for OHS at Rs. 110000. This charge is the lowest in the country where the average cost of OHS in a private hospital is Rs. 250000. At the upper end, patients who opted for executive wards paid Rs 140000 - Rs 195000 for private rooms instead of general wards. To add to it, they offered the Karuna Hrudaya package for financially constrained patients at Rs. 65000 per OHS. For patients who could not even afford this, they helped arrange funds through the Narayana Hrudayalaya Trust 's general corpus or by seeking external donations. The treatment across all the packages was the exactly identical. Since their inception, the number of in patients and out patients as well as catheterization and surgeries has constantly increased as shown in the below table: Inpatients Outpatients Catheterization Surgeries Total %age Growth (YoY) Total %age Growth (YoY) Total %age Growth (YoY) Total %age Growth (YoY)
Apr 01 - Mar 02 4242 - 9875 - 2116 - 1842 -
Apr 02 - Mar 03 7226 70% 10863 10% 3367 59% 2742 49%
Apr 03 - Mar 04 10262 42% 15382 42% 4777 42% 3570 30%
Apr 01 - Mar 04 - 142% - 56% - 126% - 94%
This has helped them achieve a breakeven of Rs. 90000 for OHS. By performing tests
Would you describe this heart hospital as successful? Explain why.
If successful, what were the elements that made it successful? If not yet successful, what else should NH be doing?
“A dream of making quality healthcare available to the masses worldwide”
Narayana Hrudayalaya was established by Dr. Devi Prasad Shetty in 2001 with this mission. Its main focus was to provide affordable cardiac care to the masses. It has followed a hybrid strategy of attracting paying patients by virtue of its reputation for high quality combined with a relentless focus on lowering its costs of operations whenever possible. In 2004, the proportion of patients who paid NH 's full price to those that cannot afford to pay was about 60:40. Following this strategy, they priced their general ward patients for OHS at Rs. 110000. This charge is the lowest in the country where the average cost of OHS in a private hospital is Rs. 250000. At the upper end, patients who opted for executive wards paid Rs 140000 - Rs 195000 for private rooms instead of general wards. To add to it, they offered the Karuna Hrudaya package for financially constrained patients at Rs. 65000 per OHS. For patients who could not even afford this, they helped arrange funds through the Narayana Hrudayalaya Trust 's general corpus or by seeking external donations. The treatment across all the packages was the exactly identical. Since their inception, the number of in patients and out patients as well as catheterization and surgeries has constantly increased as shown in the below table: Inpatients Outpatients Catheterization Surgeries Total %age Growth (YoY) Total %age Growth (YoY) Total %age Growth (YoY) Total %age Growth (YoY)
Apr 01 - Mar 02 4242 - 9875 - 2116 - 1842 -
Apr 02 - Mar 03 7226 70% 10863 10% 3367 59% 2742 49%
Apr 03 - Mar 04 10262 42% 15382 42% 4777 42% 3570 30%
Apr 01 - Mar 04 - 142% - 56% - 126% - 94%
This has helped them achieve a breakeven of Rs. 90000 for OHS. By performing tests