Operational Efficiency at Narayana Hrudayalaya-NH: Expanding Reach

Operational Efficiency at Narayana
Hrudayalaya-NH
Expanding Reach
Contents
NH- An overview
Leadership: Dr. Devi Shetty
Stand-out features
Challenges
Operations Management
Milestones
Conclusion
• SLIDE Number 6, 18, 19 alone NOT DONE.
Kindly help.
• SLIDE Number 11 and 14 two points highlighted in RED.

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NH – AN OVERVIEW
Introduction
Founded by Dr. Devi Prasad Shetty in the year 2000.
NH is a chain of multi-specialty hospitals, heart centers, and primary care

facilities with its headquarters in, Bengaluru.
It has presence across major Indian cities with an international subsidiary

as well
Currently the number accounts for 31 hospitals operating in 19 Indian cities
VISION: High quality healthcare with compassion and care, at an

affordable cost on a large scale.
MISSION: Affordable heath care for all.

Dr. DEVI SHETTY
Leadership
Henry Ford of cardiac Surgery
Renowned cardiac surgeon and Philanthropist. Icon of modern entrepreneurship

in healthcare.
His Trigger: Most Indians cannot afford tertiary and specialty health care. One of
the biggest reasons for them falling below the poverty line is an illness in the
family.
His Mission: To create multi-specialty ‘health cities’ where every health need can
be provided at an affordable price
His Action Plan: Build expertise in specialties other than cardiac and cancer
care; expand to more cities; use technology to cut costs, improve outcomes.
Known for his rational thinking and innovative approach.
It is not a solution if it is not affordable

STAND-OUT FEATURES ICARE
Does not turn away
Equal access for Lower mortality rate
patients who cannot
everyone to world than best hospitals of
afford the price of
class health care US
surgery
Way ahead in terms

Patients know at the
of modernization and Asset light model
outset what they
bringing technology approach.
have to pay
into effect
Charity is not scalable but good business principles are.

CHALLENGES
Poverty
2.4 million people

Higher cost of needed heart
cardiac surgeries surgery every year
.
Indians and Number of

cardio-vascular physicians per
diseases 1000 popular is
less
Government
expenditure on
Healthcare
NH – Operations Management
Key Strategy - “Economy of Scale”
Much talked about operational strategy adopted by NH.
NH takes advantage of volume in its favour.
Large number of pathological tests per day per machine brings down per unit cost.
Consumption in large volumes ensures discounts from suppliers as well.
Focussed on Larger volumes of open heart surgeries.
NH performed twice the number of operations, six days a week as compared to US.
Key Strategy - “Collaborations”
NH has the best collaborators such as ISRO and Biocon.
ISRO provides satellite service to link rural and remote hospitals to NH.
Biocon helps in providing cheaper drugs.
Collaboration with other hospitals rather than treating them as competitors.
Single equipment maintenance partner
Strategic alliance with leading companies to provide better equipment and service.
Key Strategy - “Technology Innovation”
Leveraged IT and implemented cloud based ERP system
NH's extensive data base is on Cloud, saving infrastructure and people costs
rather than setting up data centers.
Implanted automated redress system (PEARLS)
Using the da Vinci robotic surgery system, surgeons operate through just a few
small incisions.
NH sends account information and P&L statements to all doctors on daily
basis
NH mines data to raise quality levels. Its business intelligence model throws up
real time data on 30 different parameters that the management may want to
track for improving efficiency.
IPad based solutions replaced charts and simulators are used to train nurses.
Telemedicine
Large Telemedicine network
With the help of ISRO ,modern telecommunication technology is used to

interact with rural people. Doctor has ability to administer patient remotely.
Training general practitioners in usage of cardiac equipments (ECGs, VC)
Mobile Outreach Vans - Mobile health clinics were designed which carried
necessary equipment including ECG Machines.
Micro Medicine and telepathy reduced cost to a greater extent
IBM ‘KidSmart’ and Narayana Health Inspiring learning through

technology.
Innovative strategies
Hospital has set up a central buying unit and standardized purchase of consumables and devices.
Chose to use the cold water from the sea to replace energy intensive refrigeration system at Cayman islands
near Caribbean.
Trained spouse and family member of patients for post-surgery care.
Started a nursing college to ensure constant supply of qualified nurses at relatively lower costs (Narayana
Hrudayalaya College of Nursing)
Hired Women from villages and trained them in operating ECG Machines.
Woman empowerment.
Expensive machines are opted on rent from suppliers
Fixed salary of doctors
NH manages fund on a daily basis
Continuous training program
Created replication systems and procedures

Digitalization of reports
Focus on natural ventilation, minimal use of AC
Few hospitals are on lease
Assembly line approach
Standardization of processes and Procedures

YESHASVINI
Medical insurance scheme that offers cashless surgical treatment.
NH started YS in various rural cooperative sectors for a monthly minimal payment of around Rupees
5/month. Now Rs. 20/month
Designed in partnership with the Karnataka government and public healthcare facilities, as well as with
the NH group of hospitals.
Yeshasvini scheme can be easily reproduced through mobile phones across the country by charging
Rupees 20/- for each mobile phone subscriber.
Over 4 and half lakh farmers had a variety of surgeries, 60 thousand farmed went through cardiac surgery
OUTCOMES
Efficiency is higher than even the best US hospitals
Lower mortality rate
Case study at Harvard and occupied front page of wall street

journal
Highly affordable without compromising quality
Innovating thinking has revolutionized the healthcare sector
Expanding reach and dissociating health care from affluence
Cardiac Surgery at 500$ does not seem very far-fetched now.

Milestones
Dr. Devi Shetty is a proud recipient of Padma Bhushan for Medicine in 2012.
Recognized by CNN-IBN as Indian of the Year 2012
Best Hospital by CNBC & ICICI Lombard, 2010
CSR award for exceptional CSR work in health sector, 2011
Listed in the Fortune Next 500 list of Companies
Narayana Foundations conducts various training programs and is shortlisted by UGC for status of a Deemed
University
First hospital in Asia to implant an artificial heart
Price/Performance Value leadership Award by Frost & Sullivan India.

SWOT
SWOTANALYSIS
Analysis
Weakness
Core Strength
Strength Weakness • Supply side
bottleneck
• Affordable by masses
• Specialty in heart care • No product
• Collaborators like ISRO, innovation, heavy
Biocon dependencies on
• Insurance Scheme process innovation
• Cost Management
Opportunity Threat
• Digital push will further

Opportunity Threat
• Model can be replicated
optimize the cost by the competitors
• Use of IT will make the • Social cause of the NH
healthcare safer may conflict with the
• Healthcare sector is seeing shareholders interest
huge demand surge
because of ageing
population, rising
affordability
• Predictive healthcare
Conclusion
Superior quality tertiary care at high volume and low cost.
It has unambiguous focus on women empowerment and making healthcare affordable.
Indian-style principles to tackle exorbitant costs.
Its unique business model helped in transforming health sector.
Innovative operational strategies adopted by NH assisted in achieving organizational goals.

I am just a technician. If the man up there decides that the person will live, no
one can take him/her away - Dr. Devi Shetty

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Operational Efficiency at Narayana

• SLIDE Number 11 and 14 two points highlighted in RED.

Founded by Dr. Devi Prasad Shetty in the year 2000.

NH is a chain of multi-specialty hospitals, heart centers, and primary care

It has presence across major Indian cities with an international subsidiary

Currently the number accounts for 31 hospitals operating in 19 Indian cities

VISION: High quality healthcare with compassion and care, at an

MISSION: Affordable heath care for all.

Henry Ford of cardiac Surgery

Renowned cardiac surgeon and Philanthropist. Icon of modern entrepreneurship

Known for his rational thinking and innovative approach.

It is not a solution if it is not affordable

Way ahead in terms

Charity is not scalable but good business principles are.

2.4 million people

Indians and Number of

Key Strategy - “Economy of Scale”

Much talked about operational strategy adopted by NH.

NH takes advantage of volume in its favour.

Consumption in large volumes ensures discounts from suppliers as well.

Focussed on Larger volumes of open heart surgeries.

Key Strategy - “Collaborations”

NH has the best collaborators such as ISRO and Biocon.

Biocon helps in providing cheaper drugs.

Collaboration with other hospitals rather than treating them as competitors.

Single equipment maintenance partner

Key Strategy - “Technology Innovation”

Leveraged IT and implemented cloud based ERP system

Implanted automated redress system (PEARLS)

Large Telemedicine network

With the help of ISRO ,modern telecommunication technology is used to

Training general practitioners in usage of cardiac equipments (ECGs, VC)

Micro Medicine and telepathy reduced cost to a greater extent

IBM ‘KidSmart’ and Narayana Health Inspiring learning through

Trained spouse and family member of patients for post-surgery care.

Fixed salary of doctors

NH manages fund on a daily basis

Continuous training program

Created replication systems and procedures

Focus on natural ventilation, minimal use of AC

Few hospitals are on lease

Assembly line approach

Standardization of processes and Procedures

Medical insurance scheme that offers cashless surgical treatment.

Efficiency is higher than even the best US hospitals

Lower mortality rate

Case study at Harvard and occupied front page of wall street

Highly affordable without compromising quality

Innovating thinking has revolutionized the healthcare sector

Expanding reach and dissociating health care from affluence

Cardiac Surgery at 500$ does not seem very far-fetched now.

Recognized by CNN-IBN as Indian of the Year 2012

Best Hospital by CNBC & ICICI Lombard, 2010

CSR award for exceptional CSR work in health sector, 2011

Listed in the Fortune Next 500 list of Companies

First hospital in Asia to implant an artificial heart

Price/Performance Value leadership Award by Frost & Sullivan India.

• Digital push will further