Narayana Health's mission is to deliver high quality, affordable healthcare services to the broader population in India. Our core values are represented by the acronym "iCare", which encompasses innovation and efficiency, Compassionate care, Accountability, Respect for all, and Excellence as a culture. At the same time, we seek to generate a strong financial performance and deliver long-term value to our shareholders through the execution of our business strategy.
CONSUMER EXPERIENCE
I can now get the surgery I desperately need without taking on a huge loan or borrowing money from relatives. I will live a longer and more productive life thanks to Narayana Hrudayalaya (NH)
WHO NEEDS IT?
Around 2.5 million people require heart surgeries in India every year.
Barriers to access include cost and the limited capacity of Indian doctors to perform conventional heart surgeries. The same need can be seen in other medical areas as well. The process needs a breakthrough
transformation to meet the medical needs of the masses and not only
those who can afford it
WHAT IS THE HEALTHOVATION?
Patients at Narayana Hrudayalaya get cardiac care at a third or less of what it costs at other Indian hospitals and a fraction of what it costs in the US –making it affordable and accessible to the masses. This is achieved by cutting costs wherever possible: bypassing distributors; increasing support staff; putting doctors on fixed salaries; and, by utilizing unique business models such as microinsurance in which people who pay discounted rates are subsidized by those who pay full price or opt for extra perks.
WHAT WAS THERE BEFORE?
Traditional hospitals that provide cardiac care but at a much higher
price, which eliminates care for those who cannot afford it. In contrast, Narayana focuses on how to make quality healthcare affordable for all. Compared to Narayana, regular hospitals are too bureaucratic and cannot achieve similar economies of scale.
IMPACT
NH, a pioneer of affordable and accessible healthcare to the masses, has created a record of performing nearly 15,000 surgeries on patients from 25 foreign countries. Its tele-medicine practice, in which each surgeon has Skype on his laptop, extends its reach even further to 100 facilities throughout the country and more than 50 in Africa.
EMERGING TRENDS
Increase in Chronic and Lifestyle-Related Illnesses: Cardiovascular diseases being the leading cause of death in the world.
Globalization: This trend is opening new gates for medical tourism and Narayana Hrudayalaya is one of the biggest players leveraging it.
Rising Healthcare Costs: Leading to growing inequality in the provision of healthcare for the entire population.
BASIC HUMAN NEEDS
Safety and Security: Narayana Hrudayalaya performs complex medical procedures at affordable prices without compromising quality. For instance, its pediatric cardiac procedures enjoy a success rate of over 98%.
Health: The hospital opens its doors to all patients who need their services irrespective of their socio-economic status and ability to pay.
WHY THEY ARE WINNING
This is the only hospital in the world that has performed over 15,000 surgeries with efficiencies that allow surgeons to perform 8x more procedures than in any other hospital—while achieving higher margins (7.7%) than most US hospitals.
PRICING
Price Discrimination and Subsidies: The average open-heart surgery runs less than USD 2,000, a third or less of standard costs in India and a fraction of its cost in the U.S. For US healthcare tourists, for instance, a heart operation, access to an experienced specialist, and a deluxe private room for total cost of USD 7,000 is a relative bargain—and allows for lower prices allotted to poorer Indians.
PRODUCTION
Doctors work on a fixed salary; thus, the cost drops when # of procedures increases. Doctors are equipped with a robust support staff to ease their tasks. Hospital optimizes economies of scale by procuring directly from manufacturers.
OFFERING
Provides “one point for all,” specialty, high-quality healthcare at low cost in a centralized location. The hospital expands its outreach through a network of hospitals and borderless telemedicine.
DELIVERY
Efficiencies achieved by cutting in some areas that do not affect the quality of the medical services has created new capacities to offer needed procedures for their customers.
MARKET
NH’s priority is the low-income population in India or other developing markets that are in need of specialty care. To spread quality care to all, the hospital also serves other international markets and rich patients.
PARTNERS
Narayana Hrudayalaya now manages or owns hospitals in 15 Indian cities. Its tele-medicine practice in which each surgeon has Skype on his laptop extends its reach even further: to 100 facilities throughout India and more than 50 in Africa.
The hospital is also partnering with the government to provide health insurance to the bottom of the pyramid at affordable monthly premiums.
