This case analysis evaluates the efficacy and Financial evaluation of the model used by the iconin Aravind eye Hospital in Chennai to bolster the eye surgery market in south India.

1. ARAVIND EYE HOSPITAL – MADURAI
Evaluation of functioning model and suggesting long term growth
Raison d’être of creation: Acute Blindness problem in India
Absolute no. of blind persons (UNCTAD 2001)
Africa
Asia
Latin America
Europe, former Soviet union, Ocenia
and North America
The same UNCTAD report suggests the fact that the countries of developing world (listed in the pie chart as Asia, Africa
and Latin America) constitute around 77% of world’s population by 2001 estimates but had a disproportionate no. of
cases to the tune of 93.34% of terminal blindness cases.
Nature of Nature of
Blindness in Blindness in
Developed 1) 75% of reported Developing 1) Here, blindness in
World cases are due to World the form of diabetic
catatract out of which retinopathy, glaucoma
80% are age related. and age related
degeeneration .
2) Lesser proposition of
'life style' related cases 2) Higher proportion of
of bllindness lifestyle related cases
of blindness
In India:- Around 20 million blind pair of eyes are present, out of which only 12 million people are recognized
as blind (having less than 6/60 vision and 8/60 for temporary blindness). Out of these cases, around 75% to 80
are cataract related.
Bottlenecks in treating this epidemic:-
Only 42,000 hospital beds in ophthalmology department out of which 66% are situated in urban areas.
Only, 8,000 registered ophthalmologists are available.
Around 1.2 million cataract surgeries performed – not even enough to clear the new additions of 2 million
every year.

2. Proporation of surgeries performed in India
NGOs & Volunteer Groups like
Sahyata
state Government &
CentralGovernment
Private Sector
CATARACT:-
Medically refers to the clouding of eye lens which takes around 3-10 years to fully manifest wherein the surgical removal
is the only known treatment. They have two principal techniques – ICCE (Intra Capsular Surgery without Intra Ocular
Lens) and ECCE ( Extra Capsular surgery with Intraocular lens):-
ICCE 1) more prevalent in developing
countries.
ECCE 1) more prevalent in developed
countries.
2) conducted without operating 2) conducted under operating
microscope. microscope.
3) the eye lens replaced is not of 3) the eye lens replaced is not of
natural quality and requires natural quality and requires
continuous visula aid (aphakic continuous visula aid (aphakic
glasses). glasses).
4)gradual vision imorovement over
More Expensive 4)gradual vision imorovement over
3-5 weeks, 3-5 weeks,
5) conducted in 20 mins. 5) conducted in 20 mins.
PERSONALITY MAPPING PROFILE FOR Dr. GOVINDAPPA VENKATSWAMY – The man behind Aravind
eye Hospital ( Using Big 5 indicators)
Spiritual and idealistic (Has been born and raised in the nationalistic environment when the freedom
struggle was going on – came in contacts of ideals of Arabindo and Gandhi)
Feeling of passionate service (Went to Indian Army Medical Corps, hence not much atuned towards
profit)
Close encounters with the sense of crippling disability after a severe attack of rheumatoid arthiritis early
on in his life has helped him connect with the differently abled.
Highly skilled in technical expertise.
Personal tragedies like early demise of father and his assumption of role of the family guardian has
cemented a sense of affection and responsibility between him and his extended family most of whom
man the managerial and technical decision making ranks of Aravind hospital. – Father Figure

3. ARAVIND EYE HOPITAL:-
t
Distinction between Free and Main clinics
1) For paying patients in such a way that it cross -
subsidises the free clinic. 1) Free of cost for the under-priveledged
2) Well equipped with modern facilities often 2) Rudimentary stand alone infrastructure but
imported eequipments. modern facilities from the main clinic used in
complicated cases.
3) Speciality clinics for retina & vitreous
3) The hospital has a inpatient, outpatient and
diseases, cornea, glaucoma, diabetic retinopathy
operating theateres.
etc.
4) the main source of patients was refferals from eye
4) All heads of clinics - well trained in medicine camps organised .
and management and are mostly from family
5) Compulsory rotation of all staff between main
5) Compulsory rotation of all staff between and free clinics to ensure impartial quality
main and free clinics to ensure impartial quality differences.
differences.
Timeline of development of Aravind Hospital:-
A B C D E F G H
1976 1977 1978 1984 1988 1990 1991 1994
A:- Aravind Eye Hospital (Main) opens with 20 beds to function on no loss- no profit model
B: - Main Hospital expands to 30 beds. An annexure for convalescent patient of 250 beds opened
C:- Free Hospital with 70 beds starts
D: - Free Hospital expands tro 350 beds. Eye camps launched.
E: - In addition to 600 beds in Madurai, another hospital at Tirunelvelli for 400 beds and 100 bed
hospital at Thani commences operation.
F: - Free Hospital opens to walk in patients
G: - Intra Ocular factory set up
H: - Addition of new floor space of 50,000 square feet and 124 beds in Main hospital and 50 in free
hospital achieved.
Value Proposition for Doctors, Nurses, and Auxiliary Staff for joining a social service hospital like
Aravind Hospitals: -
 For Ophthalmologists: -
Tremendous learning opportunities and professional support. Attend conferences, conclaves
and publish papers etc.

4. The partnered institutions include premier organizations like St. Vincent’s Hospital in new York,
University of Illinois etc.
The pay-scale is market linked.
 For Nurses: -
No extra formal training required. All provided by Aravind Eye Hospital
Job Security.
Functioning of main hospital and free clinics – WORK FLOW CHART
Opthalmic
Assistants
record vision tests for occular tension, tear duct
parameters tension, refraction tests
Prelimnary Eye Final
examination examination by
Senior Medical
First Report Officer
REFFERRALS