Post on 14-Jun-2015
description
Aravind Eye Care SESSION 4
HARINDER SINGH PELIA
Key success determinants
Optimum use of surgeons time
Efficient surgeons
Efficient recruitment and training of nursing staff
Maintaining high quality standards
Organizing rural camps to attract volumes of patients
In house manufacture of IOL
How to scale up the Model
Use operations management techniques to spread out traffic to the whole day rather than through the morning only
Manage the 3 most busy days, use token/prior-appointment system. Manage the slack.
Only critical tasks should be done by senior surgeons, routine tasks can be done by junior residents. Bring down the time per surgery from 10 minutes to 5-8 minutes per surgery.
Deeper Analysis into the Aravind Model
Economies of scale bring cost advantages
Model can be replicated wherever minimum customization is required and standardization of processes is possible
Recruit some nurses out of nursing colleges to save on training costs and get ready-to-go nurses
Use avenues other than eye camps to generate revenue streams
Doctors work 60 hours a week instead of 30
Recommendations
Scale up AuroLab and manufacture IOLs and sell them to competing eye hospitals like LV Prasada in Hyderabad.
Increase community out reach, use NGO networks as well
Increase the fee on paid services to cover a larger base of the free service hosital
Generate an eye Bank on full scale
Use donations like LVP and make it a central part of your cash flows
Franchising Aravind Hospitals
The revenue model must first ensure that the cost of capital at least must be recovered
Franchisee rights may be provided through competitive bidding to interested parties in neighbouring states
Franchisee’s financial ability must be assessed to gauge his ability to support a free hospital. Ideals must match too.
New hospitals must be mentored by senior ophthalmologists to ensure quality in services provided.