SPECIAL REPORT: INDIA

THE ARAVIND EYE HOSPITAL

Photo Source: http://www.aravind.org/clinics/images/aehmdu.jpg

Photo Source: http://www.youthkiawaaz.com/wp-content/uploads/2010/12/indian-poverty.jpg http://3.bp.blogspot.com/__JnNp-RKWjw/TRgku5w2K8I/AAAAAAAAAkk/z5MjuoYDXlQ/s1600/poor_indian2.jpghttp://1.bp.blogspot.com/_vgEEh8HDcx8/TKtFLvq1kCI/AAAAAAAAAb0/ZxgIuPFGwRI/s1600/poverty_india.jpghttp://2.bp.blogspot.com/_DAYI2LBqL8g/TRkuTDZkKwI/AAAAAAAAAD4/6Any2b6WaY4/s1600/indian_poor_kids_baby.jpg

POVERTY Social Issue in India

260.3 M below poverty line

75% poor

Universal Health Care System

Operated by the government, alone cannot meet health needs

reasons: growing population, low per capita income, inadequate infrastructure, aging population, illiteracy

For the poor, at the taxpayer's expense Few medical practitioners, inefficient

hospitals, poor quality medical service

Avoidable Blindness

Rapidly escalating Cause of concern in the healthcare scenario 45 M suffer worldwide 12 M are indians;

80% (9,600,000.00)-POOR Common cause is Cataract: 62.6%

“ Intelligence and Capability are not enough. There must also be the joy of doing something beautiful. Being of service to God and Humanity means going well beyond sophistication of the best technology, the humble demonstration of courtesy and compassion to each patient.”

- Dr. Govindappa Venkataswamy

Dr. Govindappa Venkataswamy

Affectionately known as Dr. V

Born Oct. 1918; died at age 87

MD at the Stanly Medical College

Joined Indian Army to practice Obsterics

Photo Source: http://4.bp.blogspot.com/_z4f5Utuf6qM/TRrKmse1mPI/AAAAAAAAAOs/8EK8QOMzFzQ/s320/Dr.v.jpg

Dr. V

Crippling disease, degenerative RA, shattered his ambition

Chose new dream: passion to eradicate needless blindness

“If McDonald's can sell billions of burgers and Coca Cola billions of sodas, why can't I sell millions of sight – restoring operations”

Dr. V

Age 58, formed the Govel Trust, non profit trust Started an 11-bed hospital, Aravind Eye Hospital

5 beds for pay, 6 beds for free Mortgaged his house and jewelries

Consults free for poor (2/3), 50 R's (1 US$) Subsidized rate: 750 R's (15 US$),

pay patient as 3500. R's- 6000. R's Profit from one pay-patient, covers 2 who cannot

pay

Aravind Eye Hospital

11-bed (1976) 1500-bed (1992) 95,000 eye surgeries annually 2001: 1.5M blind operated,

restored sight Serves penniless farmers to the

president 75% surgeries free of

cost 65% free out patient

consultPhoto Source: http://tbmdb.blogspot.com/2009/04/aravind-uses-freemium-business-model.html

Aravind Eye Hospital

6 more satellite hospitals: 1985 to 2011

Screened 3.65M patients, performed 335,000

Cataract surgeries (70% free to the poorest

Aravind is different!

Never throw away patients due to economic reasons

GOAL: help as many people, not make profit

BUSINESS MODEL OF ARAVIND

Provides a level of sustainability Quality care at prices patients can afford Use of two tiered pricing structure: wealthy

people expected to contribute more, one paid surgery, do more free surgeries

Standardized protocols, cut down errors High volumes: create expertise for

ophthalmologists

BUSINESS MODEL OF COMPASSION

GOAL was not money or commercial success

Never invested in high-profile ad campaigns

Rely on out reach programs Stubbornly self-reliant

BUSINESS MODEL OF COMPASSION

A classic case of McDonald-isation of surgery:

Deliver standard quality at low cost Assembly line, brand recognition,

standardization, consistency, volume

How to reach the poor?

EYE CAMPS- screen in rural areas Help from local community/ business

enterprise, social service organization Sponsored by charitable

trusts/individuals/government Ad through posters

VIDEO Conferencing, message online and webcam

2003:ARAVIND EYE CARE SYSTEM Divisions:

AUROLAB Manufacture own lens (1980's IOL 80-100

US$) Local production cost (2.00-5.00 US$) Sutures, eye pharmaceuticals

LAICO International training center for

ophthalmologists

ARAVIND Medical Research Foundation Center for opthalmic research

ARAVIND center for women Research center for women and children

ROTARY ARAVIND International EYEBANK

International eyebank (until 2003, 4383 eyes)

Financial Success

Tight financial control On time accounting Appropriate pricing Transparency

ANALYSIS: ARAVIND EYE HOSPITAL

Reveals the power of a Business Model Integrates entrepreneurship, innovation,

empathy, compassion Service with business principles Inner change with outer transformations

Dr. Venkataswamy

True SOCIAL ENTREPRENEUR

- “people with entrep quality seek to change an entire field; not only want to express ideas, but be part of solving problems by executing their ideas”

PHILIPPINE SETTING

85M filipinos (2002) ½ M are blind (4.2% of India's 12 M) Cataract case is 400,000

National Survey on Blindness

1st - 1987 Prevalence Rate: 1.07% (642,000) 2nd - 1995 Prevalence Rate: 0.70% (478,968)

decreased by 37% 3rd - 2002 Prevalence Rate: 0.58%

decreased by 0.49%

DOH steadfastly achieving GOAL to eliminate preventable blindness by 2020

DOH Programs

Sangkap Pinoy Program Increase cataract surgical rate Provide Refractive Services Control Vitamin A Deficiency

Vision 2020 Commits to decreases prevalence of blindness

Prevention of Blindness Program Cataract backlog eradication program

Others to support:

Christian Blind Mission: 50M$ annually, Philippines is 5th

National Committee for Sight preservation: government and NGO monitors cataract surgical rate

MRTP: DOH and UP Manila, 28 graduates fielded to 28 provincial hospitals

Foundation for the Blind: EPETHA

Medical missions 25-30 a day for cataract surgery (FREE)

Use of IOL from India?

Pricing Cataract surgery (charity) 6000.00 Pay Multifocal 120,000.00 (lens is 60-80K)

Monofocal 40,000.00 (lens is 15K)

RECOMMENDATION

Eye care services coordination Referral network Empower local government-cataract

backlogs Eye care education in school curricula Intensive information campaign against

blindness National registry for the blind

Not actually far because in 15 years the prevalence rate dropped almost 50%

* COLLABORATION among all programs

* Seek to INNOVATE not only through ideas, but

more important is the execution!

* Be CREATIVE putting words into ACTION!

How then is the GOAL achievable?

IF ARAVIND is a McDonald-isation.....

.....then the Philippine Eye care is Jollibee-sation.

- Peachy

REFERENCES

www.araving.org

www.caseplace.org/d.asp?d=925

www.ukessays.com/essays/business/aravind-eye-hospita.php

www.planetedentrepreneurs.com/wp-content/uploads/

Tbmdb.blogspot.com/2009/04/aravind...business-model.html

www.aravind.org/downloads/infinitevisionTIMES.pdf

Eyedrd.org/2013/...aravind-eye-care-system-a-role-model

Philippine National Surveyon Blindness, Baccay, Esplana, Rullepa, Villamor Copyright 2004 UP Manila