Dr. Devi Shetty of Narayana Hrudayalaya: Delivering Quality Cardiac Care to the Masses

This case is a Runner-up in the 2016 oikos Global Case Writing Competition (Social Entrepreneurship Track), organized by oikos International, Switzerland.



Case Details Case Introduction 1 Case Introduction 2 Case Excerpts

Abstract

The case discusses the growth of Narayana Hrudayalaya (NH) – a social enterprise set up with the objective of providing affordable healthcare to the needy – its emergence as a chain of well-run hospitals across India, and its foray into foreign countries. The case further highlights the decision of the company to go in for an IPO and poses the question whether this would affect the social objective of the organization in view of the pressures it would face to achieve short-term results as a publicly listed company.

NH was established in Bangalore in the year 2001 by Devi Shetty (Shetty) with a 225-bed hospital primarily providing cardiac care. By 2015, it had grown into a chain of 57 facilities with 5,600 operational beds – 56 facilities in India and one in the Cayman Islands. NH stood apart in the Indian healthcare market by providing quality healthcare to the masses at an affordable cost. In 2015, it had operational revenue (standalone) of INR 13,075 million with a profit of INR 289 million, treating patients from 25 countries. Shetty had plans to establish facilities with 30,000 beds by 2020. He pioneered several innovations to bring down the cost of treatment and the way in which the treatments were funded...

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Issues

The case is structured to achieve the following teaching objectives:

  • Evaluate the decision of a social enterprise to become a publicly listed company through an IPO.
  • Design a framework of governance for a publicly listed social enterprise to maintain focus on its social objectives.
  • Explore alternative funding strategies for a social enterprise to achieve its growth plans.

Contents
INTRODUCTION
A CHILDHOOD INSPIRATION
WORKING FOR A SOCIAL CAUSE – MOTHER TERESA’S INFLUENCE
HEALTHCARE AND HOSPITAL SECTOR IN INDIA
WALMARTIZATION OF HEALTHCARE – SHETTY’S INNOVATIVE APPROACH
FOCUSING ON PROFITABLE REVENUE STREAMS
THE ROBIN HOOD OF HEART CARE
INNOVATIONS IN FINANCING OF PATIENT TREATMENT
USE OF TECHNOLOGY TO EXPAND REACH
WOMEN EMPOWERMENT
DEVELOPING TALENT – TOWARD DAWN PROGRAM
THE PERSONAL TOUCH
CHARISMATIC NETWORKER
LOOKING AHEAD– EXPANSION PLANS AND FINANCING GROWTH
EXHIBITS

Keywords

Healthcare, Cardiac care,Bottom of the pyramid, Quality healthcare, Affordable healthcare to the masses, Social entrepreneurship,Innovation, Cost management,Passion, Funding a social enterprise, Funding growth, Heart surgery, Telemedicine, Social goals, Public issue

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