Narayana Heart Hospital

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Narayana Hrudayalaya Heart Hospital Cardiac Care for the Poor Executive Summary The public health care system in India has long been a major issue for the country. Many citizens have been unable to receive the proper health care due to high costs and the inability to reach a capable hospital. Dr. Shetty has founded the Narayana Hrudayalaya Heart Hospital as a solution to this major issue. Utilizing a cost leadership strategy, he has been able to significantly reduce the costs of cardiac procedures. By implementing a government funded insurance scheme, he has also allowed more people than ever to have access to this health care. As the hospital has grown in success, Dr. Shetty has expanded his operations to reach a larger…show more content…
For example, NH used digital X-ray scanners that did not incur recurrent costs rather than the traditional ones with cost additionally money each use for the film. Another technological edge was the management software implemented hospital wide. This allowed for smoother operations including minimum inventory and quicker processing of tests. Although the initial costs for implementing these technologies were higher, the long-term benefits were very cost efficient. These advances played a large role in improving the hospital’s efficiency and thus lowering overall costs. Another major component of NH’s business strategy was the idea of allowing non-paying patients to still be treated. In fact, as of 2004, only 60% of patients could pay full price. Allowing such a unique structure while still remaining in business required careful planning. The finance department had to employ a unique daily accounting system where all revenues and costs for the day were accounted for. This allowed the hospital to frequently and accurately gauge their ability to fund below-cost procedures. Clearly, not all subsidized surgeries could be performed. This system helped NH figure out which ones could be that day and if not, when they could be performed at the earliest possible time. This unique financing system was pivotal in NH’s ability to maintain financial success and provide care to poor patients that could not
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