slides of Aravind Hospital

1. SE
P CIALR P T: INDIA
E OR
TH AR
E AVIND E YE
H P
OS ITAL
Photo Source: http://www.aravind.org/clinics/images/aehmdu.jpg

2. POVERTY Social
Issue
in India
260.3 M below 75
poverty line %
Photo Source: http://www.youthkiawaaz.com/wp-content/uploads/2010/12/indian-poverty.jpg
http://3.bp.blogspot.com/__JnNp-RKWjw/TRgku5w2K8I/AAAAAAAAAkk/z5MjuoYDXlQ/s1600/poor_indian2.jpg
http://1.bp.blogspot.com/_vgEEh8HDcx8/TKtFLvq1kCI/AAAAAAAAAb0/ZxgIuPFGwRI/s1600/poverty_india.jpg poo

3. Universal Health Care System

Operated by the government, alone cannot
meet health needs
reasons: growing population, low per capita
income, inadequate infrastructure, aging
population, illiteracy

For the poor, at the taxpayer's expense

Few medical practitioners, inefficient
hospitals, poor quality medical service

4. Avoidable Blindness

Rapidly escalating

Cause of concern in the healthcare scenario

45 M suffer worldwide

12 M are indians;
80% (9,600,000.00)-POOR

Common cause is Cataract: 62.6%

5. “ Intelligence and Capability are not enough.
There must also be the joy of doing something
beautiful. Being of service to God and
Humanity means going well beyond
sophistication of the best technology, the
humble demonstration of courtesy and
compassion to each patient.”
- Dr. Govindappa Venkataswamy

6. Dr. Govindappa Venkataswamy

Affectionately known
as Dr. V

Born Oct. 1918; died at
age 87

MD at the Stanly
Medical College

Joined Indian Army to
practice Obsterics
Photo Source: http://4.bp.blogspot.com/_z4f5Utuf6qM/TRrKmse1mPI/AAAAAAAAAOs/8EK8QOMzFzQ/s320/Dr.v.jpg

7. Dr. V

Crippling disease, degenerative RA,
shattered his ambition

Chose new dream: passion to eradicate
needless blindness

“If McDonald's can sell billions of
burgers and Coca Cola billions of sodas,
why can't I sell millions of sight –
restoring operations”

8. Dr. V

Age 58, formed the Govel Trust, non profit trust

Started an 11-bed hospital, Aravind Eye Hospital
− 5 beds for pay, 6 beds for free

Mortgaged his house and jewelries
− Consults free for poor (2/3), 50 R's (1 US$)
− Subsidized rate: 750 R's (15 US$),
pay patient as 3500. R's- 6000. R's
− Profit from one pay-patient, covers 2 who cannot
pay

9. Aravind Eye Hospital

11-bed (1976)

1500-bed (1992)

95,000 eye surgeries annually

2001: 1.5M blind operated,
restored sight

Serves penniless farmers to the
president
− 75% surgeries free of
cost
− 65% free out patient
consult
Photo Source: http://tbmdb.blogspot.com/2009/04/aravind-uses-freemium-business-model.html

10. Aravind Eye Hospital

6 more satellite Aravind is different!
hospitals: 1985 to 2011 Never throw away

Screened 3.65M patients due to
patients, performed economic reasons
335,000 GOAL: help as many

Cataract surgeries people, not make
(70% free to the profit
poorest

11. BUSINESS MODEL OF ARAVIND

Provides a level of sustainability

Quality care at prices patients can afford

Use of two tiered pricing structure: wealthy
people expected to contribute more, one paid
surgery, do more free surgeries

Standardized protocols, cut down errors

High volumes: create expertise for
ophthalmologists

12. BUSINESS MODEL OF
COMPASSION

GOAL was not money or commercial
success

Never invested in high-profile ad
campaigns

Rely on out reach programs

Stubbornly self-reliant

13. BUSINESS MODEL OF
COMPASSION

A classic case of McDonald-isation
of surgery:
− Deliver standard quality at low cost
− Assembly line, brand recognition,
standardization, consistency,
volume

14. How to reach the poor?
EYE CAMPS- screen in rural areas
− Help from local community/ business
enterprise, social service organization
− Sponsored by charitable
trusts/individuals/government
− Ad through posters
VIDEO Conferencing, message online and
webcam

15. 2003:ARAVIND EYE CARE SYSTEM

Divisions:
AUROLAB
− Manufacture own lens (1980's IOL 80-100
US$)
− Local production cost (2.00-5.00 US$)
− Sutures, eye pharmaceuticals
LAICO
− International training center for

16. 
ARAVIND Medical Research Foundation
− Center for opthalmic research

ARAVIND center for women
− Research center for women and children

ROTARY ARAVIND International
EYEBANK
− International eyebank (until 2003, 4383
eyes)

17. Financial Success

Tight financial control

On time accounting

Appropriate pricing

Transparency

18. ANALYSIS: ARAVIND EYE
HOSPITAL

Reveals the power of a Business Model

Integrates entrepreneurship, innovation,
empathy, compassion

Service with business principles

Inner change with outer transformations

19. Dr. Venkataswamy
True SOCIAL ENTREPRENEUR
- “people with entrep quality seek to
change an entire field; not only want to
express ideas, but be part of solving
problems by executing their ideas”

20. PHILIPPINE SETTING

85M filipinos (2002)

½ M are blind (4.2% of India's 12 M)

Cataract case is 400,000

21. National Survey on Blindness

1st - 1987 Prevalence Rate: 1.07% (642,000)

2nd - 1995 Prevalence Rate: 0.70% (478,968)
decreased by 37%

3rd - 2002 Prevalence Rate: 0.58%
decreased by 0.49%
DOH steadfastly achieving GOAL to eliminate preventable
blindness by 2020

22. DOH Programs

Sangkap Pinoy Program
− Increase cataract surgical rate
− Provide Refractive Services
− Control Vitamin A Deficiency

Vision 2020
− Commits to decreases prevalence of blindness

Prevention of Blindness Program
− Cataract backlog eradication program

23. 
Others to support:
− Christian Blind Mission: 50M$ annually,
Philippines is 5th
− National Committee for Sight
preservation: government and NGO
monitors cataract surgical rate
− MRTP: DOH and UP Manila, 28 graduates
fielded to 28 provincial hospitals

24. Foundation for the Blind: EPETHA

Medical missions 25-30 a day for cataract
surgery (FREE)

Use of IOL from India?
Pricing

Cataract surgery (charity) 6000.00

Pay Multifocal 120,000.00 (lens is 60-80K)
Monofocal 40,000.00 (lens is 15K)

25. RECOMMENDATION

Eye care services coordination

Referral network

Empower local government-cataract
backlogs

Eye care education in school curricula

Intensive information campaign against
blindness

National registry for the blind

26. How then is the GOAL achievable?
Not actually far because in 15 years the prevalence
rate dropped almost 50%
* COLLABORATION among all programs
* Seek to INNOVATE not only through ideas, but
more important is the execution!
* Be CREATIVE putting words into ACTION!

27. IF ARAVIND is a McDonald-
isation.....

28. .....then the Philippine Eye
care is Jollibee-sation.
- Peachy

29. REFERENCES
www.araving.org
www.caseplace.org/d.asp?d=925
www.ukessays.com/essays/business/aravind-eye-hospita.php
www.planetedentrepreneurs.com/wp-content/uploads/
Tbmdb.blogspot.com/2009/04/aravind...business-model.html
www.aravind.org/downloads/infinitevisionTIMES.pdf
Eyedrd.org/2013/...aravind-eye-care-system-a-role-model
Philippine National Surveyon Blindness, Baccay, Esplana, Rullepa,
Villamor Copyright 2004 UP Manila