Narayan health case slides

1. VISION STATEMENT
To provide world-class cardiac care to patients from all walks of life, regardless of their ability to pay
SITUATIONAL ANALYSIS
Serving the Underserved: NH provided discounted or free care to nearly 40% of patients who could
not afford treatment. This aligned with the founder's vision for affordable care.
High Quality Care: By recruiting renowned surgeons and implementing rigorous training, NH
achieved surgical outcomes comparable to the US. This attracted patients from across India.
Scale and Volume: Performing over 19 surgeries daily, NH achieved economies of scale that allowed
lowering of per unit costs. Daily accounting helped plan subsidized care.
Technology and Innovation: Telemedicine allowed cardiac consultations to remote areas. Yeshasvini
insurance improved affordability for the rural poor. Initiatives aligned with vision.
Partnerships: Collaborations with government agencies like ISRO provided connectivity and
infrastructure needed to expand reach. This increased accessibility.
Culture: The hospital's mission-driven culture focused on care for all. Doctors worked tirelessly to
serve more patients. Values aligned with vision.

2. INDUSTRY ANALYSIS
THREAT OF NEW ENTRANTS
High capital costs to set up cardiac care infrastructure
Expertise required to attract reputed surgeons and train medical staff
Economies of scale take time to develop in terms of high surgery volumes
Brand reputation for quality care builds over time
BARGAINING POWER OF SUPPLIERS
Many vendors and suppliers for medical equipment
Significant purchasing power due to high volumes of usage
Negotiate discounts around 30-35% with 10% market share
COMPETITIVE RIVALRY
Many private hospitals competing for same pool of cardiac patients
Hospitals differentiate based on costs, quality, reputation and accessibility
NH competed on high volumes, low costs and reputation for positive outcomes
Rivalry kept in check somewhat by rising patient demand and advancement
BARGAINING POWER OF BUYERS
Individual patients have low bargaining
power due to lack of options
No single or organized buyer accounts for
large share of demand
Patients lack full information about
treatment choices and costs
THREAT OF SUBSTITUTES
No real substitutes for cardiac surgeries
and catheterization procedures
Medication and other non-surgical
treatments not effective alternatives

3. HOW IS NH DIFFERENT?
WAL-MARTIZATION STRATEGY
High level of capacity utilization by performing high volume of procedures
Renting machines instead of buying
No long term contracts with suppliers
Gaining better deals from the suppliers through the purchasing alliance with the Calcutta Hospital
Using advanced technologies like digital x-ray to avoid recurring cost
Adopting operational management softwares to increase hospital efficiency by reducing inventory
costs and quicker processing of tests
Reduced proportion of revenue for salaries
Cartelization with other heart hospitals
Fixed salaries to doctors

4. DIVERSE INITIATIVES
TELEMEDICINE FOR RURAL CARDIAC CARE: INNOVATING TREATMENT REACH
Misdiagnosis Challenge
Coronary-Care Units (CCUs)
Collaboration and reach
MOBILE OUTREACH CAMPS: EXTENDING CARDIAC CARE
Weekend Bus Camps
Advanced Equipment
Local Collaborations
MEDICAL EDUCATION IMPACT: TRAINING FUTURE SPECIALISTS
Comprehensive Training
Cardiology Diploma Initiative
Extended training to nurses
YESHASVINI INSURANCE: HEALTHCARE ACCESS FOR FARMERS
Inspiration for Insurance
Affordable Coverage
Collaborative Approach with govt.
HEALTH CITY EXPANSION: SPECIALIZED AFFORDABLE CARE
Diversification Plan
New Specialties
Collaborative Facilities

5. PERFORMANCE ANALYSIS
The net loss of ₹6,337 suggests that the organisation is operating at a deficit, which could indicate
potential financial challenges
Maintain focus on operational efficiency, waste reduction, and cost optimisation will enable to provide
affordable care while sustaining its financial health
Since Current ratio is 1.23, NH has adequate asset to cover its liabilities
Quick Ratio of 1.02 indicates a relatively decent ability to cover short-term liabilities without relying
heavily on inventory
The Gross Profit Margin of 0.52 indicates that the hospital is generating a positive margin after
accounting for direct operational costs
The negative Net Profit Margin (-0.01) is not a favourable sign, suggesting that the hospital is incurring
losses relative to its total revenue

6. GAPS IN INDIAN HEALTHCARE INDUSTRY
INDIAN HEALTHCARE LANDSCAPE
High incidence of corruption
Understaffed and Underequipped
Access to health care in rural areas was
limited
Income disparity
High equipment cost
Number of physicians per 1000
population was only 0.5
NH STRATEGIES
Lean administrative team avoided corruption
Obtaining better supplier prices through a
purchasing relationship with the Calcutta
Hospital
Mobile Outreach Camps: Extending Cardiac
Care
Renting machines instead of buying
Usage of digital X-rays to avoid the recurring
cost

7. Dr Shetty: Presence of a leader
who exudes charisma, ambition
and a youthful vigour with good
networking
COULD THIS BE ADOPTED TO DEVELOPING COUNTRIES?
Location: Bangalore, Karnataka
IT city and a captial with good
proportion of paying and non
paying pop. (60:40)
Capital intensive
Started from founder’s financing
Presence of a stable govt.,
programmes like Yeshasvini was
successful due to reliance on govt.
infrastructure
Gaps in the existing healthcare
system that can be leveraged
Presence of skilled labour willing
to follow NH Model
Reputation and Culture of the
organisation maybe harder to
replicate
Presence of suppliers willing to
adopt NH strategies
Presence of lean structure that
avoided issues like corruption

8. Thank You