Innovations in the Healthcare Services Industry in India

Innovations in the Healthcare Services Industry in India

            
 
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Case Details:

Case Code : BREP001
Case Length : 15 Pages
Period : 1991-2004
Pub Date : 2004
Teaching Note :Not Available
Organization : Amrita Institute of Medical Sciences, Aravind Eye hospitals, Apollo Hospitals
Industry : Healthcare
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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"Give people a new experience, one that deeply changes their lives, make it affordable, and eventually you change the whole world. And your customers become your marketers."

- Dr. Govindappa Venkataswamy, founder of Aravind Eye Hospitals1.

"We are looking to develop realistic models to balance the cost of creation and the ability to pay. The agenda is to try and bring quality healthcare to the masses at a minimum price and yet help the hospitals to run a viable business".

- Dr Naresh Trehan, Chairman of the Confederation of Indian Industry's (CII) Committee on Healthcare for 2003-04.2

"Apollo and other private hospitals have tried to bring in the best health facilities to India. Now, most of these hospitals are in the metros. We want to take it to the smaller towns and villages. Similarly, in some of the other countries especially in the Afro-Asian region, there is a great need for healthcare facilities".

- Pratap Reddy, Chairman of Apollo Hospitals, in an interview with Rediff.3

Introduction

In 2003, a CII and Mckinsey study projected that India's healthcare market could touch Rs.3,200 million by 2012 from the existing Rs.1,030 million. It also predicted that India had a great future as a major destination for medical tourism.

India is already a preferred healthcare destination for neighboring countries due to the low cost and high quality treatment available here.

With the arrival of tele-medicine in 1999, several large healthcare facilities in India have been linked up with healthcare facilities in the neighboring countries and the rest of Asia. Tele-medicine has enabled international patients to obtain specialized care in from India.

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In the recent past, there have been several innovations in the healthcare services industry in India, giving patients a new experience of healthcare. The Amrita Institute of Medical Sciences' fully digital, computerized and networked facility enabled it to offer tele-medicine services such as tele-consultation, fetal tele-medicine and tele-surgery.

Aravind Eye hospitals' Internet kiosks in remote rural areas enabled poor villagers to consult top eye physicians online. Apollo Hospitals covered the entire gamut of healthcare services, from primary, secondary and tertiary care to diagnostic services and pharmacies.

The innovations in products and services have made its hospitals a one stop location for people's healthcare needs.

The hub and spoke model was another innovation in the diagnostic centers and pathology laboratories segment. All these innovations have given patients better service.

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1] Sulekha.com

2] P.T. Jyothi Datta, 'Scope for major corporate role in primary healthcare', July 25, 2003, www.blonnet.com Shobha Warrier, 'We will make India the global healthcare destination: Reddy' September 30, 2003, www.rediff.com

 

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