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A Novice’s Experiment With
Affordable Healthcare
V. Renganathan
Co-Founder, Vaatsalya Healthcare Solutions

Presented at L...
Enabling access to affordable healthcare

Vaatsalya Healthcare Solutions
Presented at Lounge47.in on 1st February 2014
Cop...
Indian Healthcare Expenditures
Year
2008
2012
2017

•
•
•
•
•

HC Expenditure ($)
45 B
79 B
158 B

Annual Growth rate: 15%...
Healthcare Services Distribution
Indian Population: 30% Urban & 70% Rural

Hospitals: Mostly Urban & Tertiary Care
Demand:...
About Vaatsalya
• Mission: Create a network of for-profit
hospitals providing customer-oriented, ethical,
affordable, and ...
Vaatsalya Business Model
• Location: Tier II and III cities with 200K
population
• 50-100 bed hospitals
• Specialties: Gen...
Founders/Management Team
Dr. Ashwin Naik, Co-Founder & CEO
• Physician, scientist, and entrepreneur
- VP of Business Devel...
Founders/Management Team

Dr. Renganathan V

VP Alliances

Scientist turned manager
- Asso. Prof, Biochemistry at Oregon G...
Vaatsalya Hospitals (12)
Karnataka

Presented at Lounge47.in on 1st February 2014
Copyright © Mr. Dr. V Renganathan
Vaatsalya Hospitals (4) – A.P.

Rajmundhry

Presented at Lounge47.in on 1st February 2014
Copyright © Mr. Dr. V Renganatha...
Facilities

Presented at Lounge47.in on 1st February 2014
Copyright © Mr. Dr. V Renganathan
Vaatsalya Hospital, Hassan
Bharathi Healthcare Complex, Opp to Sandalkote

Presented at Lounge47.in on 1st February 2014
C...
Vaatsalya Hospital, Hubli
IMZ Plaza, Next to New Bus Stand

Presented at Lounge47.in on 1st February 2014
Copyright © Mr. ...
Vaatsalya Hospital, Mandya
Pragathi Healthcare Complex, G. H. Road

Presented at Lounge47.in on 1st February 2014
Copyrigh...
Reception, Shimoga

Presented at Lounge47.in on 1st February 2014
Copyright © Mr. Dr. V Renganathan
Neonatal ICU, Gadag

Presented at Lounge47.in on 1st February 2014
Copyright © Mr. Dr. V Renganathan
NICU – Vizianagaram, AP

Presented at Lounge47.in on 1st February 2014
Copyright © Mr. Dr. V Renganathan
ICU, Gulbarga

NICU, Gulbarga

Presented at Lounge47.in on 1st February 2014
Copyright © Mr. Dr. V Renganathan
Awards & Accolades


Top 100 startups – TATA NEN Hottest Startup 2008



Sankalp Award for Social Enterprise 2009



Ra...
Presented at Lounge47.in on 1st February 2014
Copyright © Mr. Dr. V Renganathan
Presented at Lounge47.in on 1st February 2014
Copyright © Mr. Dr. V Renganathan
Presented at Lounge47.in on 1st February 2014
Copyright © Mr. Dr. V Renganathan
Affordability in a Hospital Context
•
•
•
•
•

Affordability depends on target segment
Target segment for Vaatsalya: Rs 36...
Understand Healthcare Service Costs
Service Price =
Total Cost

=

Total cost of operations + Provider profits
Fixed Cost ...
Vaatsalya Approach to Cost Control &
Profit Optimization
Strategy

Impact

Don’t own but lease building

Low investment re...
User Challenge to Provider
•

1. Offer good quality accessible services at
affordable prices
2. That offer should be avail...
User Expectations: Healthcare Service
Cost as low as possible
High Quality
Home

Hospital

Easy Accessibility
User’s Stree...
What is Quality?
User yardsticks of Quality
• Cure rate or how fast I got cured
• Clinical Diagnosis Skills
• Hospital Cle...
Accessibility to Services
• Physical

as well as services accessibility

• Physical accessibility means hospital in the ne...
Urban Health
Issues

Communicable/Infectious
diseases

Prevention

Acute Care

•Long-term
•No significant
role for Provide...
Urban Healthcare Delivery Model
Peri-urban
Spaces

Full fledged
secondary care
hospitals with OP &
IP care

• Low-cost cli...
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A Novice’s Experiment with Affordable Healthcare

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"A Novice's Experiment with Affordable Healthcare” - Dr. V Renganathan, Co-founder, Vaatsalya Healthcare Solutions

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Transcript of "A Novice’s Experiment with Affordable Healthcare"

  1. 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. 2. Enabling access to affordable healthcare Vaatsalya Healthcare Solutions Presented at Lounge47.in on 1st February 2014 Copyright © Mr. Dr. V Renganathan
  3. 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. 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. 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. 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. 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. 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. 9. Vaatsalya Hospitals (12) Karnataka Presented at Lounge47.in on 1st February 2014 Copyright © Mr. Dr. V Renganathan
  10. 10. Vaatsalya Hospitals (4) – A.P. Rajmundhry Presented at Lounge47.in on 1st February 2014 Copyright © Mr. Dr. V Renganathan
  11. 11. Facilities Presented at Lounge47.in on 1st February 2014 Copyright © Mr. Dr. V Renganathan
  12. 12. Vaatsalya Hospital, Hassan Bharathi Healthcare Complex, Opp to Sandalkote Presented at Lounge47.in on 1st February 2014 Copyright © Mr. Dr. V Renganathan
  13. 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. 14. Vaatsalya Hospital, Mandya Pragathi Healthcare Complex, G. H. Road Presented at Lounge47.in on 1st February 2014 Copyright © Mr. Dr. V Renganathan
  15. 15. Reception, Shimoga Presented at Lounge47.in on 1st February 2014 Copyright © Mr. Dr. V Renganathan
  16. 16. Neonatal ICU, Gadag Presented at Lounge47.in on 1st February 2014 Copyright © Mr. Dr. V Renganathan
  17. 17. NICU – Vizianagaram, AP Presented at Lounge47.in on 1st February 2014 Copyright © Mr. Dr. V Renganathan
  18. 18. ICU, Gulbarga NICU, Gulbarga Presented at Lounge47.in on 1st February 2014 Copyright © Mr. Dr. V Renganathan
  19. 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. 20. Presented at Lounge47.in on 1st February 2014 Copyright © Mr. Dr. V Renganathan
  21. 21. Presented at Lounge47.in on 1st February 2014 Copyright © Mr. Dr. V Renganathan
  22. 22. Presented at Lounge47.in on 1st February 2014 Copyright © Mr. Dr. V Renganathan
  23. 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. 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. 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. 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. 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. 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. 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. 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. 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
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