Case Study Analysis. Harvard case. Aravind Eye Care

1. Aravind Eye Care
SESSION 4
HARINDER SINGH PELIA

2. Key success determinants

Optimum use of surgeons time

Efficient surgeons

Efficient recruitment and training of nursing staff

Maintaining high quality standards

Organizing rural camps to attract volumes of patients

In house manufacture of IOL

3. How to scale up the Model

Use operations management techniques to spread
out traffic to the whole day rather than through the
morning only

Manage the 3 most busy days, use token/priorappointment system. Manage the slack.

Only critical tasks should be done by senior
surgeons, routine tasks can be done by junior
residents. Bring down the time per surgery from 10
minutes to 5-8 minutes per surgery.

4. Deeper Analysis into the
Aravind Model

Economies of scale bring cost advantages

Model can be replicated wherever minimum customization is
required and standardization of processes is possible

Recruit some nurses out of nursing colleges to save on training costs
and get ready-to-go nurses

Use avenues other than eye camps to generate revenue streams

Doctors work 60 hours a week instead of 30

5. Recommendations

Scale up AuroLab and manufacture IOLs and sell them
to competing eye hospitals like LV Prasada in
Hyderabad.

Increase community out reach, use NGO networks as
well

Increase the fee on paid services to cover a larger
base of the free service hosital

Generate an eye Bank on full scale

Use donations like LVP and make it a central part of
your cash flows

6. Franchising Aravind
Hospitals

The revenue model must first ensure that the cost of capital at
least must be recovered

Franchisee rights may be provided through competitive bidding to
interested parties in neighbouring states

Franchisee’s financial ability must be assessed to gauge his ability
to support a free hospital. Ideals must match too.

New hospitals must be mentored by senior ophthalmologists to
ensure quality in services provided.