Ashwamedh- Ignite

B-Plan for
“Medical facility for rural people”

Pratyush Sinha
IIM Lucknow
• To set up medical facilities for 70% of the
population, which lives by the countryside
And to make them:
– Affordable
– Accessible
– Profitable
• 5-6 villages house approximately 7000 people
• A family can’t spend more than 6000 rupees on
one operation
• The regular medical needs are
– Relief from common cold, back pain, arthritis
– Surgery because of
• Hernia
• Abnormal hydrocele growth
• Gall bladder infection
• Ligation needs
• Abnormal gland growths
• Government hospitals
• Mobile doctors
The need gap,
What do they offer? where we can fill in
• Cheap treatment
What they don’t offer?
• Safety
• Hygiene
• Timely availability of doctors
• Quality drugs
• Professional attitude
 Key success factors - Doctors
Intermediate level
Plain consulting Basic surgery surgery
• Hire MBBS graduates • Hire MBBS graduates • Hire post graduates
for internship and for for internship and and retired doctors
in-house experience for in-house • Incentivise Post
• Incentivise them by experience graduates by higher
metro placements • Incentivise them by salary
after attending metro placements • Attract retired
10000 cases after attending doctors by peaceful
life & philanthropy
• Pay them Rs. 20000 10000 cases
• Pay post graduates
monthly stipend • Pay them Rs. 20000 20% higher
monthly stipend
• Pay retired doctors
40000-60000
monthly
 Key success factors - Location
• Currently in rural areas, there is one doctor for
18000-20000 people
• We offer one doctor for 3000 people
• We offer one hospital for 10 villages, with 3
consultants and 2 surgeons
 Key success factors – Pathology,
medicine and hospital charges
• We offer pathological investigations at 60% to
70% of the actual cost
• We offer medicines at one-fourth of the actual
cost, by eliminating middle-man and buying
directly from the company
– We will only sell drugs on the prescription issued
by the resident doctor, to prevent black marketing
• We offer hospital facilities at one-third of the
actual cost
 A comparison:
Cost of a hydrocele operation

Normal setup Our setup

Doctor’s charges Rs. 2500-3000 Rs. 1500
Pathology charges Rs. 300 Rs. 200
Medicine cost Rs. 800 Rs. 200
Hospital charges Rs. 300 Rs. 100
Total Rs. 4100-4600 Rs. 2000

• We offer a normal surgery at half the actual

price
 Market potential
• For a hospital that will cater to 10 villages
– There will be 30 cases of consultancy daily
– We’ll charge them Rs. 50 per consultancy
– There will be 2-3 cases of basic/ intermediate surgery
daily
– We’ll charge them Rs. 2000 to Rs. 8000 depending on
the surgery
• From one such hospital
– We expect a top line of Rs. 14000 per day
– We expect a bottom line of 10%, i.e. Rs. 1400 per day
 Modus operandi
• We intend to hire qualified doctors who could diagnose
patients correctly to help them recover quickly and
hence spend less money
• We intend to prescribe only the “must” pathological
tests to save money for the patients
• We intend to prescribe the most effective medicine at
one-fourth the cost to help patients recover quickly
• We intend to make money by treating 3 times more
patients than a comparable facility treats by earning 10
% profit as opposed to its profit of 50-60%

Thank You.