A Novice’s Experiment with Affordable Healthcare
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The document presents a comprehensive overview of Vaatsalya Healthcare Solutions, a network of for-profit hospitals aimed at providing affordable healthcare in semi-urban and rural areas of India. It details the challenges faced in healthcare access, the operational model of Vaatsalya, and how the organization balances cost control while ensuring quality care. Additionally, it highlights the awards and recognition received by Vaatsalya, emphasizing its mission to deliver customer-oriented and ethical healthcare services.
A Novice’s Experiment with Affordable Healthcare
- 1. A Novice’s Experiment With Affordable Healthcare V. Renganathan Co-Founder, Vaatsalya Healthcare Solutions Presented at Lounge47.in on 1st February 2014 Copyright © Mr. Dr. V Renganathan
- 2. Enabling access to affordable healthcare Vaatsalya Healthcare Solutions Presented at Lounge47.in on 1st February 2014 Copyright © Mr. Dr. V Renganathan
- 3. Indian Healthcare Expenditures Year 2008 2012 2017 • • • • • HC Expenditure ($) 45 B 79 B 158 B Annual Growth rate: 15% Increasing income Insurance availability Availability of good hospitals Availability of highly skilled doctors Presented at Lounge47.in on 1st February 2014 Copyright © Mr. Dr. V Renganathan
- 4. Healthcare Services Distribution Indian Population: 30% Urban & 70% Rural Hospitals: Mostly Urban & Tertiary Care Demand: Mostly Primary & Secondary care Semi-urban & Rural areas lack healthcare facilities & when available may not be of good quality Presented at Lounge47.in on 1st February 2014 Copyright © Mr. Dr. V Renganathan
- 5. About Vaatsalya • Mission: Create a network of for-profit hospitals providing customer-oriented, ethical, affordable, and efficient healthcare services in semi-urban and rural areas • Number of hospital units operational: 15 • “Accessible, affordable, human-touch, & respect” Presented at Lounge47.in on 1st February 2014 Copyright © Mr. Dr. V Renganathan
- 6. Vaatsalya Business Model • Location: Tier II and III cities with 200K population • 50-100 bed hospitals • Specialties: General medicine, Gynecology, Pediatrics, and General Surgery • Offer 70% of needed healthcare services • Other Specialties: Nephrology, Urology, Pediatric Surgery Presented at Lounge47.in on 1st February 2014 Copyright © Mr. Dr. V Renganathan
- 7. Founders/Management Team Dr. Ashwin Naik, Co-Founder & CEO • Physician, scientist, and entrepreneur - VP of Business Development at Triesta Sciences - Human Genome Project, Celera Genomics, USA Dr. Veerendra Hiremath, Co-Founder & VP, Projects • Physician & Hospital admin - Vivus Group Hospitals, and Asia Heart Foundation Presented at Lounge47.in on 1st February 2014 Copyright © Mr. Dr. V Renganathan
- 8. Founders/Management Team Dr. Renganathan V VP Alliances Scientist turned manager - Asso. Prof, Biochemistry at Oregon Graduate Institute, Portland, USA - 40 publications & 6 PhDs - Program manager, Intel, Portland, Oregon, USA - PhD from Indian Inst. Of Science, Bangalore - MBA from Portland State University, Portland, Oregon, USA •. - Presented at Lounge47.in on 1st February 2014 Copyright © Mr. Dr. V Renganathan
- 9. Vaatsalya Hospitals (12) Karnataka Presented at Lounge47.in on 1st February 2014 Copyright © Mr. Dr. V Renganathan
- 10. Vaatsalya Hospitals (4) – A.P. Rajmundhry Presented at Lounge47.in on 1st February 2014 Copyright © Mr. Dr. V Renganathan
- 11. Facilities Presented at Lounge47.in on 1st February 2014 Copyright © Mr. Dr. V Renganathan
- 12. Vaatsalya Hospital, Hassan Bharathi Healthcare Complex, Opp to Sandalkote Presented at Lounge47.in on 1st February 2014 Copyright © Mr. Dr. V Renganathan
- 13. Vaatsalya Hospital, Hubli IMZ Plaza, Next to New Bus Stand Presented at Lounge47.in on 1st February 2014 Copyright © Mr. Dr. V Renganathan
- 14. Vaatsalya Hospital, Mandya Pragathi Healthcare Complex, G. H. Road Presented at Lounge47.in on 1st February 2014 Copyright © Mr. Dr. V Renganathan
- 15. Reception, Shimoga Presented at Lounge47.in on 1st February 2014 Copyright © Mr. Dr. V Renganathan
- 16. Neonatal ICU, Gadag Presented at Lounge47.in on 1st February 2014 Copyright © Mr. Dr. V Renganathan
- 17. NICU – Vizianagaram, AP Presented at Lounge47.in on 1st February 2014 Copyright © Mr. Dr. V Renganathan
- 18. ICU, Gulbarga NICU, Gulbarga Presented at Lounge47.in on 1st February 2014 Copyright © Mr. Dr. V Renganathan
- 19. Awards & Accolades Top 100 startups – TATA NEN Hottest Startup 2008 Sankalp Award for Social Enterprise 2009 Rashtriya Samman Puraskar 2009 Frost & Sullivan India, Excellence In Healthcare Award 2010 India Fast Growth 25 (# 5 Ranking) 2010 Ashwin Naik selected as a global Young Leader by WEF (2012) Porter Prize for Value Based Healthcare (2012) Presented at Lounge47.in on 1st February 2014 Copyright © Mr. Dr. V Renganathan
- 20. Presented at Lounge47.in on 1st February 2014 Copyright © Mr. Dr. V Renganathan
- 21. Presented at Lounge47.in on 1st February 2014 Copyright © Mr. Dr. V Renganathan
- 22. Presented at Lounge47.in on 1st February 2014 Copyright © Mr. Dr. V Renganathan
- 23. Affordability in a Hospital Context • • • • • Affordability depends on target segment Target segment for Vaatsalya: Rs 36 – 120K/year BPL income: 17K a year Our customer earns 2x – 7x that of a BPL family Vaatsalya is affordable by APL segments Presented at Lounge47.in on 1st February 2014 Copyright © Mr. Dr. V Renganathan
- 24. Understand Healthcare Service Costs Service Price = Total Cost = Total cost of operations + Provider profits Fixed Cost + Variable Cost + Indirect Cost Fixed costs: Professionals, Mortgage/Rent, Depreciation Variable costs: Medicines, Consumables Indirect Costs: Water, electricity, Corporate expenses (Expected) Provider Profits α Investments Presented at Lounge47.in on 1st February 2014 Copyright © Mr. Dr. V Renganathan
- 25. Vaatsalya Approach to Cost Control & Profit Optimization Strategy Impact Don’t own but lease building Low investment requirement Buy only reliable Indian made equipment Lowered capital expenditure Negotiate volume discount Lowered capital & variable expenditure No costly equipment (eg; MRI) Lowered capital expenditure Doctors on revenue share Lower fixed expenditure Control corporate expenditure Lower operational expenses Presented at Lounge47.in on 1st February 2014 Copyright © Mr. Dr. V Renganathan
- 26. User Challenge to Provider • 1. Offer good quality accessible services at affordable prices 2. That offer should be available wherever I move in my community – That means scalable Presented at Lounge47.in on 1st February 2014 Copyright © Mr. Dr. V Renganathan
- 27. User Expectations: Healthcare Service Cost as low as possible High Quality Home Hospital Easy Accessibility User’s Street Presented at Lounge47.in on 1st February 2014 Copyright © Mr. Dr. V Renganathan
- 28. What is Quality? User yardsticks of Quality • Cure rate or how fast I got cured • Clinical Diagnosis Skills • Hospital Cleanliness A quality provider follows recommended guidelines of diagnosis & treatment What are the impact of quality measures on cost? Presented at Lounge47.in on 1st February 2014 Copyright © Mr. Dr. V Renganathan
- 29. Accessibility to Services • Physical as well as services accessibility • Physical accessibility means hospital in the neighborhood itself or if transportation is available easy access through roads How does accessibility impact costs ? Closer the healthcare facility to the user higher the costs Presented at Lounge47.in on 1st February 2014 Copyright © Mr. Dr. V Renganathan
- 30. Urban Health Issues Communicable/Infectious diseases Prevention Acute Care •Long-term •No significant role for Provider •Short-term •Predominant role for Provider • OP & IP care Non-Communicable Prevention •Long-term •Significant role for Provider • OP care • Diagnostics Presented at Lounge47.in on 1st February 2014 Copyright © Mr. Dr. V Renganathan Chronic Care •Long-term •Significant role for Provider • OP & IP • Diagnostics
- 31. Urban Healthcare Delivery Model Peri-urban Spaces Full fledged secondary care hospitals with OP & IP care • Low-cost clinics • 1-2 docs, ANM, Nurses • Clinics with OP care • Diagnostics • Medical management • Diet/exercise consultation • OP chronic care treatments Presented at Lounge47.in on 1st February 2014 Copyright © Mr. Dr. V Renganathan