Commercialization has affected all industries, including health care. In specific parts of the world, only the wealthy can afford to recuperate from illness, since the medical industry has become a business for profit. Offering low-cost yet high quality care for impoverished countries, Narayana Hrudayalaya tells us a different story.
The company – composed of an organized group health centers – started its operations in 2001 with a cardiac center located in Bangalore. From one hospital, founder Dr. Devi Shetty has expanded Narayana into what he calls a “health city”. The first center in Bangalore now also specializes in trauma, cancer, and eye care. Narayana health centers are also found in 14 other cities in India. This is just the beginning though, for the founder wishes to create more health cities that could accommodate 5,000 patients.
Because of their services, Narayana is described as a model for accessible, affordable health care. But with such low returns, how does the company make economics work?
They found that the secret to cheaper health care is hindered by routine inefficiencies and mechanics of delivery. For one, the doctors in Narayana’s center work on a fixed salary, instead of being paid a hefty fee for every surgery. The company also has a micro-insurance program that gives farmers coverage – for a little over $2.50 dollars annual premiums. Dr. Shetty describes their creative ways of cutting down costs “the Walmart way”. True enough, Narayana has brought a bargain deal to all of its patients by bringing medical care to the masses.
Narayana was recognized as one of the 50 most innovative companies this year for its milestones in health care. Dr. Shetty was brave enough to test an untested model, and time has proven it effective. Many patients, especially the poor, owe their health to Narayana Hrudayalaya, the hospital made especially for them.
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