Budget hospitals are here to stay Devi Prasad Shetty Narayana Hrudayalaya
Budget hospitals are here to stay Devi Prasad Shetty Narayana Hrudayalaya

Devi Prasad Shetty cardiac surgeon and founder of Narayana Hrudayalaya is all set to replicate the lowcost highvolume model of healthcare that he pioneered across India and overseas The multispecialty hospital chain Narayana Hrudayalaya that he founded will expand its Indian footprint with six new hospitals in the coming year Shetty spoke to Peerzada Abrar about how cuttingedge affordable medical care is the next big opportunity in the healthcare sector

Innovation in healthcare

Cost of healthcare is one of the main reasons for personal bankruptcy in the US Healthcare policies in the US and Europe are dependent on the belief that tax payers money can meet healthcare expenses This worked in the past when people worked till age of 60 and died at 65 Now people retire at 60 and go on to celebrate their 95th birthday People are going to live longer

Countries are gradually getting older and will produce less number of babies The economic engine wont be driven that rapidly like in young countries

There is a crisis in healthcare across the world Earlier it was felt palpable in developing countries and now it has affected even developed countries The US is now spending 18 of its GDP on healthcare

In spite of spending that much of money nearly 4050 million people are not insured The model of healthcare has to change and we believe that the Indian lowcost model will be able to address those issues

Business opportunity

Entrepreneurs in the healthcare sector should be aware that the procedure cost will come down The days of premium charges for surgeries will not last but they will be doing large number of procedures

Government policies will dramatically change the cost of healthcare will go down and the government will gradually become a health insurance provider Foreign capital is also important for the growth of healthcare because this industry is capital intensive and the return on investment is slow

Whoever is able to wait long enough would be able to enjoy the benefits There is one gamechanging activity happening in healthcare which is maintenance of medical equipment

Ascension Health has a subsidiary called TriMedx which maintains healthcare equipment They will be able to extend the life of CT MRI Cath Labs and all these expensive machines from the current seven years to 14 years

The affordable model

We believe cost of healthcare will reduce by half over the world The cost of healthcare at present is not real An affordable healthcare model is sustainable because it offers volumes

The number of procedures done will go up significantly driving down the cost Pharmaceutical companies and medical equipment companies will sell more and doctors will operate more It is not about choosing niche centres of excellence model or onestop multispecialty hospitals It is not going to be onesizefitsall

There are buyers for Rolex watches as well as for Titan ones We are focused on multispecialty model but we use other models as well We have a standalone heart hospital we do dialysis services run cardiology and cardiac surgery Our vision is to add 30000 beds in the next five to seven years in India Africa and other Asian countries

Date : 13 Apr, 2012
Reference : http://economictimes.indiatimes.com/news/emerging-businesses/startups/budget-hospitals-are-here-to-s

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