Aravind eye care hospital

The presentation in detail analyses the story of Arvind eye care hospital which is considered to be one of the most successful non-profit hospitals all around the world.

1. Arvind Eye Care Hospital ANSHIKA GUPTA || DIBESH KUMAR || GAURAB MONDAL|| HARSH KUMAR || KANIKA GUPTA || MASOOM MODH || MAULIK CHAUDHARY

2. If McDonald’s can sell billions of burger and Coca-Cola can sell billions of soda, why cant I sell millions of sight-restoring operations? - Dr. G ovindappa V enkataswamy

3. Introduction Established in 1976 by Dr. Govindappa Venkataswamy . Started for the benefit of those people who could not afford a cataract eye surgery. The business model was based on that of McDonald’s and inspiration was from Shri Aurobindo and Mahatma Gandhi . From Shri Aurobindo and Mahatma Gandhi, “Dr. V” adopted p rinciples which inculcated the culture of hard work in the people working there. From McDonald’s, Dr. Venkataswamy adopted efficiency and standardization Vision to serve all at an affordable price No compromise over quality of service

4. Timeline 1978 1977 1976 20 Bed Hospital Goal - Providing Quality eye care at reasonable cost 70 Bed Free Hospital Goal - Providing poor with free eye care 30 Bed Goal - To accommodate patients after surgery 1981 Main Hospital 250 Beds • 80,000 sq. feet space • 4 Major O.T. Specialty Clinics • Cornea Glaucoma • Squint Corrections • Diabetic Retinopathy • Paediatric Ophthalmology Journey from 1976 to 1981

5. Early Years Mission of eliminating needless blindness in the world Not interested in competition Till mid 1990 there was little competitive pressure as there were few hospitals providing quality eye care . Aravind eye care set up LAICO ( Lions Aravind Institute of Community Ophthalmology) to share knowledge of eye care with other hospital Hiring and retaining doctors was a challenge . Developed a loyalty by recruiting young girls from village who needed job and imparting essential skills to take care of all support system in hospitals.

6. Challenges faced Very low volume of patient turnout in the initial days, mainly due to lack of awareness of the services which were being provided. Hiring good doctors and retaining them. Imported Intraocular lenses (IOL) were very expensive (US $200 each) ,resulting in increased operational cost . Very little support from central or state government Faced difficulties in raising capital during start-up years Maintaining high quality of treatment was a challenge in the initial years

7. Business Model S elf-funding healthcare delivery model free-of-cost or at cost , high-quality service for 50-60% of its patients who are poor or ‘non-paying’ by using the profits generated from the 40-50% of the paying patients S ame quality of service across both paying and non-paying patients Singular Vision - E liminating blindness through cataract surgery Hybrid Business Model - U se the cash-flows from paying patients to cross subsidize services for the needy. The ability to develop high-end ophthalmic care helped them attract and retain qualified doctors .

8. Operating Model High volume, high quality and low cost business model – cost here could be as low as US$50 while in the US, it is in the range of US$3,000 Fixed costs are reduced through scale and operational efficiency D eveloped standardized processes for key operations, so as to ensure consistent and efficient delivery OPD – 6,000 outpatients in hospital, 1500 in outreach camps per day Surgeries – Aravind doctor performs >2000 surgeries in a day, Assembly line approach to surgery Cross Training the workforce – Large staffs of nurses and technicians, to reduce costs - Aravind recruits and trains women from local communities and certifies them as technicians (these women make up 60% of Aravind’s workforce ) In-house manufacturing - Aravind set up a manufacturing facility which makes intraocular lens called Aurolab in 1992. The price of the lens has been driven down to less than US$10 (90% reduction !)

9. Emerging Challenges Expectation of patients has increased, which is forcing Aravind to innovate more and improve it’s service offerings Finding and collaborating with likeminded partners to raise funding and accelerate the provision of eye care Challenge in leadership succession planning to maintain the unique culture of the organization Getting people who are motivated towards the working philosophy of the organization Large scale programs are needed to increase awareness regarding the new forms of eye diseases which have started to occur because of change in human life-style

10. Differentiation Dr. V’s Leadership Culture of Southern India Efficiency of the surgeons & a nurse staff Ability to Network and tie up with like minded institution like Sight Savers in USA etc. Continuous innovation Having tasted success in IOLs, Aurolab has gone on to make inexpensive sutures, post operative drugs for eye-care, pharma products, ophthalmic blades, and other high-cost consumables , with the sole purpose of driving down costs and thus making them more affordable . Established as a trust, therefore, less likely to have divisive forces as happens from time to time in family-run organizations

11. Thank You