1

School of Management (MBA), NIT Rourkela

By:
Satyabrata Barik (316SM1004)
Barsha Panda (316SM1024)
Ashis Kumar Sarangi (316SM1034)
21-08-2017
 In a context of high demand for Cardiac care with an affordable price and accessible for
all groups of people, Dr. Devi Prasad Shetty saw an opportunity for the medical care of
the non premium section of the society.
 Dr. Devi Prasad Shetty Founded a Hospital (Narayana Hrudayalaya) which catered the
needs of most non premium seekers of Medical services which provides Cardiac Care at
or less than market costs.
 Dr. Devi Prasad Shetty was able to reduce costs through various strategies.
 Dr. Devi Prasad Shetty set up Coronary Care Units or CCU’s for better penetration into
the Rural market where there was a lack of basic Cardiac Care.
 Along with the CCU’s they also set up Mobile Diagnostic units for penetration into areas
where they could not set up a CCU.
 They also provided the solution of bridging the gap between doctors graduating from
Indian medical schools and newly trained cardiologists & surgeons by providing trainings
to the next generation.
 Dr. Devi Prasad Shetty also launched the Yeshasvini Insurance Scheme and initiated the
plan for Health City

21-08-2017 2
 • Affordable Prices • High Staff Turnover
• Good quality • Resources are still
• Innovative technology underutilized
• Negotiable Power
• Trust and Brand
Positioning of NH

Strength Weakness

• Threat from New entrants

• Expand the hospital
following similar pricing
reputation into all Opportunity Threat policies
specialty ones
• Change in government
• Lack of good quality
policies
health care for non
premium market • People are becoming more
concerned about their own
• Public Private partnership
health

21-08-2017 3
1.Wal-Martization of Healthcare
 Reducing Per unit Cost
 Hiring equipments on monthly rent basis
 Short term supplier contract
 Good relations with other hospitals
 Technological Innovation Management (Use of Digital X-Rays & Hospital Management Software)
 Use of Generic Drugs
 Fixed Salaries for the staffs
 Post-mortem of NH’s daily operations (Reviewing the balance-sheet every year)

2.Training the next generation

21-08-2017 4
 • Remote Camps
 Free consultation
• Experienced cardiologist
 Direct link to RTI and NH

 Supported by Indian Space

Research Organization and

Karnataka State Government

21-08-2017 5
 Launched for farmers, who are member of cooperatives
 Premium of Rs. 5/ Month
 Estimate of 8% of policy holders will require medical procedure
 Digitalized cards to prevent fraud.

21-08-2017 6
 • CARDIAC HOSPITAL (To fulfill the need and attract the mass)
• {Providing below cost care, Karuna Scheme & NH Trust, Maintaining infrastructure, medical
1 facilities and retaining specialists doctors, Wal-martization of healthcare, Establishment of
CCUs to attract rural, Mobile Cardiac Diagnostic Lab, Providing Training and Loan facilities}

• YESHASVINI INSURANCE SCHEME (To compensate the debts and

to earn more revenues rapidly)
• {Launched for farmers those who are members of cooperatives, Rs 5/month to get free
2 treatment up to Rs 100000 out of which Rs 2.5 would be contributed by the government per
farmer}

• HEALTH CITY (To expand the business and to target & segment all in one place
in order to retain its competitive advantage)
• {Dr. Shetty realized that there may be threats of sustaining in future as cardiac specialists.
3 So as per his vision he started to initiate his dream of curing everything to get back to
growth stage from maturity stage}
21-08-2017 7
 Huge Revenues generated
1.7 Million farmers registered • Oncology
So approx. more than 5 crores generated • Neurology
Telemedicine Only 8% required medical procedures so • Nephrology
remaining money was utilised as revenues
• Orthopedics

Targeted rural areas to

Yeshasvini
penetrate well so that it can Insurance Health City
compensate the debts Scheme
incurred in below cost care in
past 1 year
By 2005 around 10 million farmers
Targeted farmers as in rural areas
registered for the insurance
Mobile Cardiac the main occupation is farming.
scheme. So the huge revenues
Lab earned were now utilized for
health care as the cardiac care
almost reached its maturity stage
and in order to revert in to growth
stage, Dr. Shetty plans to expand
• 70% of people were staying in rural areas in 2001 the business.
• Targeting those 70% means serving the poor and
indirectly earning revenues by masterplan 21-08-2017 8
Plans for making health city is a great step for Dr. Devi Shetty:
 As it will help him to cover more number of patient
 Will help him to expand his business
 Will result in optimum utilization of the resources available
 Need to plan about infrastructural activities as more number of insurance holders
are subscribing each year
 CSR Activities

21-08-2017 9
21-08-2017 10