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.