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Aravind
Eye Care System


Eliminating Needless
      Blindness
80 %
of	
  b lindness
      is	
  
 treatable
200	
  mthan	
  	
  
 Less	
   illion	
  
   need	
  	
  	
  
    10	
  %
         	
  
  eye	
  care	
  
 have	
  been	
  
   treated	
  
  in	
  India	
  
Patient Care:                 Manufacturing
§  6 Eye Hospitals

§  2 Surgical Centres
                              Research
§  7 Community Eye Clinics   Consultancy
§  40 Vision Centres

§  2 Managed Hospitals
                              Training
A Typical Day at Aravind...

§  850	
  –	
  1000	
  surgeries	
  
§  6,000	
  Outpa3ents	
  in	
  hospitals	
  	
  
§  5-­‐6	
  outreach	
  camps	
  
     §  1500	
  examined	
  
     §  300	
  transported	
  to	
  base	
  for	
  surgery	
  
§  500	
  –	
  600	
  Telemedicine	
  Consulta3ons	
  
§  Classes	
  for	
  100	
  Residents/Fellows	
  &	
  300	
  
    technicians	
  and	
  administrators	
  
	
  
Making	
  Aravind	
  one	
  of	
  the	
  largest	
  providers	
  of	
  eye	
  care	
  services	
  	
  
           and	
  trainer	
  of	
  eye	
  care	
  personnel	
  in	
  the	
  world	
  
Sight Restoring Procedures
    4.3 Million as of Dec 2011
What it took to get there

    The story of the
Aravind Eye Care System
Building Blocks of Aravind


 Value	
  System	
  

Delivery	
  System	
  

   Innova3on	
  
                         Dr.	
  G.	
  Venkataswamy	
  
The value system
Designing for

NON
CUSTOMERS
Making eye care accessible
           & affordable
           The Perspective

Not charging a fee for care ≠ affordable
            cost to patient
Who covers
these costs?
Designing a cost-effective solution
 Reducing the Customers costs
Breaking the access barriers



                                                     	
  
                   Outreach	
  in	
  2010	
  –	
  2011
              No.	
  of	
  Screening	
  Camps	
       1,381	
  
              PaJents	
  examined	
                 312,129	
  
              Surgeries	
                            76,175	
  
Effectiveness of screening camps?




    •  We	
  reached	
  only	
  7%	
  of	
  those	
  in	
  need	
  of	
  eye	
  care1	
  
    •  Those	
  with	
  rarer	
  eye	
  condiJons	
  were	
  not	
  addressed	
  	
   	
  	
  	
  	
  	
  

1   Low uptake of eye services in rural India ; Fletcher et al; Archives of Ophthalmology Vol 117, Oct 1999
Primary Eye Care Centers
§  Staffed	
  by	
  technicians	
  
§  Comprehensive	
  eye	
  
    examinaJon	
  for	
  each	
  
    paJent	
  
§  Each	
  paJent	
  receives	
  
    telemedicine	
  consultaJon	
  
§  Spectacles	
  are	
  provided	
  
Primary Eye Care Centers

§  40	
  centers	
  covering	
  a	
  
    populaJon	
  of	
  2.6	
  million	
  
§  800,000	
  paJent	
  visits	
  
§  40%	
  penetraJon	
  within	
  
    the	
  first	
  year	
  
§  91%	
  of	
  problems	
  are	
  
    resolved	
  locally	
  
Impact of Outreach
§  Increased awareness
§  Influencing health-seeking behaviour
§  Creating access
§  Community participation
§  Growing the market (reaching the
    unreached)
Stretching
 Scarce
Resources
The delivery system
Managing the Bottleneck

   Scenario          A   B

   Surgeon           1    1
   Tables            1    2
   Scrub nurse       1    2
   Instrument sets   1    6
   Surgeries/hour    1   6-8
Aravind (Wo)manpower




500+ village high school girls selected each year
§  Perform	
  most	
  of	
  the	
  rou3ne	
  clinical	
  tasks	
  
§  Doctors	
  can	
  focus	
  on	
  diagnosis	
  &	
  surgery	
  
§  Higher	
  quality	
  and	
  produc3vity,	
  lower	
  cost	
  
§  The	
  lives	
  of	
  these	
  young	
  women	
  are	
  vastly	
  
    improved	
  
PRODUCTIVITY	
  OF	
  AN	
  EYE	
  SURGEON	
  

  Indonesia

  Thailand

Bangladesh

   Aravind

      India

              0   500    1000      1500      2000   2500
                        Surgeries per year
Surgical Quality
                                                     Aravind,
                                                                   UK National Survey
  Adverse Events During Surgery                     Coimbatore
                                                                       N=18,472
                                                     N=22,912
Capsule rupture and vitreous loss                             2.0%               4.4%
Incomplete Cortical Clean up                                     0.75%           1.00%
Iris Trauma                                                       0.3%           0.7%
Persistent Iris Prolapse                                         0.01%           0.07%
Anterior Chamber Collapse                                         0.3%           0.5%
Loss of nuclear fragment into vitreous                            0.2%           0.3%
Choroidal Haemorrhage                                              ------        0.07%
Loss of intra Ocular lens into vitreous                          0.01%           0.16%


     Aravind s complications are less than half of
                    those in UK
                    2   Fortune at the Bottom of the Pyramid by C. K. Prahalad
§  The	
  paJent	
  decides	
  which	
  
    facility	
  to	
  use	
  
§  Transparency	
  -­‐	
  fee	
  structure	
  
    and	
  systems	
  
A
cataract
 patient
  today
A
cataract
patient in
 the 80s
Established in 1992 to address the high
cost of ophthalmic supplies which had to
               be imported
Making Quality Eye Care Affordable




§  10 million people see the world through Aurolab s
    lenses
§  Used in 120 countries
§  7% of global market
Ensuring affordability:
§  For the patient & the community
§  For Aravind (to be sustainable)
§  When most can t pay

                  What Aravind did:
                  §  Gave away a lot of it free
                  §  Charged market rates for those who
                      can pay
                  §  Were helped by market inefficiency
                  §  Had the MINDSET
Attaining the Vision
    Eliminating needless
         blindness
Dealing with Competitive Advantage
 Guard it zealously or give it away
Create Competition
to eliminate needless blindness




             	
  	
  

                        280 Eye Hospitals worldwide
Philosophy
Not to dominate but to create a movement
LAICO – a dedicated facility
Impact of Capacity Building Process
             Cataract Surgery (40 Hospitals)

  100000
                         Capacity
   80000                 Building
                                               91,445

   60000                            76,995     Cost
                                             Recovery
                                               90%
   40000       52,506

                Cost
   20000
              Recovery
                60%
       0
             1 yr Before        1 yr After   2 yrs After
Estimated 750,000 surgeries annually added worldwide
10
                         15
                              20
                                        25
                                             30
                                                  35
                                                       40




            0
                5
 80
   -­‐8
        1
 82
   -­‐8
        3
 84
   -­‐8
        5
 86
   -­‐8
        7
 88
   -­‐8
        9
 90
   -­‐9
        1




                             27%
 92
                                                          24%




   -­‐9
        3

                          Free Direct
                                                       Free Camp




 94
   -­‐9
        5
 96
   -­‐9
        7
 98
   -­‐9
        9
 00
   -­‐0
        1
 02
   -­‐0
        3
 04
   -­‐0
        5
                                               49%
                                              Paying




'0
  6-­‐
       07
 08
   -­‐0
        9
                                                                   Doing Good, Doing Well




 10
   -­‐1
        1
            Expense
            Revenue
Redefining….


    Cost
   Quality
  Customer
 Constraints
 Competition
When	
  you	
  grow	
  in	
  spiritual	
  consciousness	
  
We	
  identify	
  with	
  all	
  that	
  is	
  in	
  the	
  world	
  
So	
  there	
  is	
  no	
  exploitation	
  
It	
  is	
  ourselves	
  we	
  are	
  helping	
  
It	
  is	
  ourselves	
  we	
  are	
  healing 	
  
             	
       	
        	
  -­‐	
  Dr.	
  G.	
  Venkataswamy	
  

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Aravind Eye Care System: Eliminating Needless Blindless

  • 2.
  • 3. 80 % of  b lindness is   treatable
  • 4. 200  mthan     Less   illion   need       10  %   eye  care   have  been   treated   in  India  
  • 5.
  • 6. Patient Care: Manufacturing §  6 Eye Hospitals §  2 Surgical Centres Research §  7 Community Eye Clinics Consultancy §  40 Vision Centres §  2 Managed Hospitals Training
  • 7. A Typical Day at Aravind... §  850  –  1000  surgeries   §  6,000  Outpa3ents  in  hospitals     §  5-­‐6  outreach  camps   §  1500  examined   §  300  transported  to  base  for  surgery   §  500  –  600  Telemedicine  Consulta3ons   §  Classes  for  100  Residents/Fellows  &  300   technicians  and  administrators     Making  Aravind  one  of  the  largest  providers  of  eye  care  services     and  trainer  of  eye  care  personnel  in  the  world  
  • 8. Sight Restoring Procedures 4.3 Million as of Dec 2011
  • 9. What it took to get there The story of the Aravind Eye Care System
  • 10. Building Blocks of Aravind Value  System   Delivery  System   Innova3on   Dr.  G.  Venkataswamy  
  • 12.
  • 14. Making eye care accessible & affordable The Perspective Not charging a fee for care ≠ affordable cost to patient
  • 16. Designing a cost-effective solution Reducing the Customers costs
  • 17. Breaking the access barriers   Outreach  in  2010  –  2011 No.  of  Screening  Camps   1,381   PaJents  examined   312,129   Surgeries   76,175  
  • 18. Effectiveness of screening camps? •  We  reached  only  7%  of  those  in  need  of  eye  care1   •  Those  with  rarer  eye  condiJons  were  not  addressed               1 Low uptake of eye services in rural India ; Fletcher et al; Archives of Ophthalmology Vol 117, Oct 1999
  • 19. Primary Eye Care Centers §  Staffed  by  technicians   §  Comprehensive  eye   examinaJon  for  each   paJent   §  Each  paJent  receives   telemedicine  consultaJon   §  Spectacles  are  provided  
  • 20.
  • 21. Primary Eye Care Centers §  40  centers  covering  a   populaJon  of  2.6  million   §  800,000  paJent  visits   §  40%  penetraJon  within   the  first  year   §  91%  of  problems  are   resolved  locally  
  • 22. Impact of Outreach §  Increased awareness §  Influencing health-seeking behaviour §  Creating access §  Community participation §  Growing the market (reaching the unreached)
  • 25.
  • 26. Managing the Bottleneck Scenario A B Surgeon 1 1 Tables 1 2 Scrub nurse 1 2 Instrument sets 1 6 Surgeries/hour 1 6-8
  • 27. Aravind (Wo)manpower 500+ village high school girls selected each year
  • 28. §  Perform  most  of  the  rou3ne  clinical  tasks   §  Doctors  can  focus  on  diagnosis  &  surgery   §  Higher  quality  and  produc3vity,  lower  cost   §  The  lives  of  these  young  women  are  vastly   improved  
  • 29. PRODUCTIVITY  OF  AN  EYE  SURGEON   Indonesia Thailand Bangladesh Aravind India 0 500 1000 1500 2000 2500 Surgeries per year
  • 30. Surgical Quality Aravind, UK National Survey Adverse Events During Surgery Coimbatore N=18,472 N=22,912 Capsule rupture and vitreous loss 2.0% 4.4% Incomplete Cortical Clean up 0.75% 1.00% Iris Trauma 0.3% 0.7% Persistent Iris Prolapse 0.01% 0.07% Anterior Chamber Collapse 0.3% 0.5% Loss of nuclear fragment into vitreous 0.2% 0.3% Choroidal Haemorrhage ------ 0.07% Loss of intra Ocular lens into vitreous 0.01% 0.16% Aravind s complications are less than half of those in UK 2 Fortune at the Bottom of the Pyramid by C. K. Prahalad
  • 31. §  The  paJent  decides  which   facility  to  use   §  Transparency  -­‐  fee  structure   and  systems  
  • 32.
  • 35. Established in 1992 to address the high cost of ophthalmic supplies which had to be imported
  • 36. Making Quality Eye Care Affordable §  10 million people see the world through Aurolab s lenses §  Used in 120 countries §  7% of global market
  • 37. Ensuring affordability: §  For the patient & the community §  For Aravind (to be sustainable) §  When most can t pay What Aravind did: §  Gave away a lot of it free §  Charged market rates for those who can pay §  Were helped by market inefficiency §  Had the MINDSET
  • 38. Attaining the Vision Eliminating needless blindness Dealing with Competitive Advantage Guard it zealously or give it away
  • 39. Create Competition to eliminate needless blindness     280 Eye Hospitals worldwide
  • 40. Philosophy Not to dominate but to create a movement
  • 41. LAICO – a dedicated facility
  • 42. Impact of Capacity Building Process Cataract Surgery (40 Hospitals) 100000 Capacity 80000 Building 91,445 60000 76,995 Cost Recovery 90% 40000 52,506 Cost 20000 Recovery 60% 0 1 yr Before 1 yr After 2 yrs After Estimated 750,000 surgeries annually added worldwide
  • 43. 10 15 20 25 30 35 40 0 5 80 -­‐8 1 82 -­‐8 3 84 -­‐8 5 86 -­‐8 7 88 -­‐8 9 90 -­‐9 1 27% 92 24% -­‐9 3 Free Direct Free Camp 94 -­‐9 5 96 -­‐9 7 98 -­‐9 9 00 -­‐0 1 02 -­‐0 3 04 -­‐0 5 49% Paying '0 6-­‐ 07 08 -­‐0 9 Doing Good, Doing Well 10 -­‐1 1 Expense Revenue
  • 44. Redefining…. Cost Quality Customer Constraints Competition
  • 45. When  you  grow  in  spiritual  consciousness   We  identify  with  all  that  is  in  the  world   So  there  is  no  exploitation   It  is  ourselves  we  are  helping   It  is  ourselves  we  are  healing        -­‐  Dr.  G.  Venkataswamy