The slide include how Devi Shetty implemented his business strategy in order to position his trust among all by giving below cost quality care and in order to compensate the investment, he indirectly targeted rural areas in the form of insurance scheme and also the scheme helped him in planing to expand his business for long time sustainability.

1. By:
Satyabrata Barik (316SM1004)
Barsha Panda (316SM1024)
Ashis Kumar Sarangi (316SM1034)
21-08-2017
1School of Management (MBA), NIT Rourkela

2.  In a context of high demand for Cardiac care with an affordable price and accessible for
all groups of people, Dr. Devi Prasad Shetty saw an opportunity for the medical care of
the non premium section of the society.
 Dr. Devi Prasad Shetty Founded a Hospital (Narayana Hrudayalaya) which catered the
needs of most non premium seekers of Medical services which provides Cardiac Care at
or less than market costs.
 Dr. Devi Prasad Shetty was able to reduce costs through various strategies.
 Dr. Devi Prasad Shetty set up Coronary Care Units or CCU’s for better penetration into
the Rural market where there was a lack of basic Cardiac Care.
 Along with the CCU’s they also set up Mobile Diagnostic units for penetration into areas
where they could not set up a CCU.
 They also provided the solution of bridging the gap between doctors graduating from
Indian medical schools and newly trained cardiologists & surgeons by providing trainings
to the next generation.
 Dr. Devi Prasad Shetty also launched the Yeshasvini Insurance Scheme and initiated the
plan for Health City
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3. •Threat from New entrants
following similar pricing
policies
•Change in government
policies
•People are becoming more
concerned about their own
health
•Expand the hospital
reputation into all
specialty ones
•Lack of good quality
health care for non
premium market
•Public Private partnership
•High Staff Turnover
•Resources are still
underutilized
•Affordable Prices
•Good quality
•Innovative technology
•Negotiable Power
•Trust and Brand
Positioning of NH
Strength Weakness
ThreatOpportunity
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4. 1.Wal-Martization of Healthcare
 Reducing Per unit Cost
 Hiring equipments on monthly rent basis
 Short term supplier contract
 Good relations with other hospitals
 Technological Innovation Management (Use of Digital X-Rays & Hospital Management Software)
 Use of Generic Drugs
 Fixed Salaries for the staffs
 Post-mortem of NH’s daily operations (Reviewing the balance-sheet every year)
2.Training the next generation
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5.  Free consultation
 Direct link to RTI and NH
 Supported by Indian Space
Research Organization and
Karnataka State Government
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• Remote Camps
• Experienced cardiologist

6.  Launched for farmers, who are member of cooperatives
 Premium of Rs. 5/ Month
 Estimate of 8% of policy holders will require medical procedure
 Digitalized cards to prevent fraud.
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7. 1
• CARDIAC HOSPITAL (To fulfill the need and attract the mass)
• {Providing below cost care, Karuna Scheme & NH Trust, Maintaining infrastructure, medical
facilities and retaining specialists doctors, Wal-martization of healthcare, Establishment of
CCUs to attract rural, Mobile Cardiac Diagnostic Lab, Providing Training and Loan facilities}
2
• YESHASVINI INSURANCE SCHEME (To compensate the debts and
to earn more revenues rapidly)
• {Launched for farmers those who are members of cooperatives, Rs 5/month to get free
treatment up to Rs 100000 out of which Rs 2.5 would be contributed by the government per
farmer}
3
• HEALTH CITY (To expand the business and to target & segment all in one place
in order to retain its competitive advantage)
• {Dr. Shetty realized that there may be threats of sustaining in future as cardiac specialists.
So as per his vision he started to initiate his dream of curing everything to get back to
growth stage from maturity stage}
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8. 21-08-2017 8
Telemedicine
Mobile Cardiac
Lab
Yeshasvini
Insurance
Scheme
Health City
Targeted rural areas to
penetrate well so that it can
compensate the debts
incurred in below cost care in
past 1 year
• 70% of people were staying in rural areas in 2001
• Targeting those 70% means serving the poor and
indirectly earning revenues by masterplan
Targeted farmers as in rural areas
the main occupation is farming.
Huge Revenues generated
1.7 Million farmers registered
So approx. more than 5 crores generated
Only 8% required medical procedures so
remaining money was utilised as revenues
By 2005 around 10 million farmers
registered for the insurance
scheme. So the huge revenues
earned were now utilized for
health care as the cardiac care
almost reached its maturity stage
and in order to revert in to growth
stage, Dr. Shetty plans to expand
the business.
• Oncology
• Neurology
• Nephrology
• Orthopedics

9. Plans for making health city is a great step for Dr. Devi Shetty:
 As it will help him to cover more number of patient
 Will help him to expand his business
 Will result in optimum utilization of the resources available
 Need to plan about infrastructural activities as more number of insurance holders
are subscribing each year
 CSR Activities
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