Cost of cardiac procedures are lower at hospitals run by Narayana Health (NH) due to "frugal innovation" methods adoted by founder Dr. Devi Shetty.
average cost of heart surgery at NH run hospitals; typical cost at other private hospitals offering the same quality of care is Rs. 1,65,000.
Rs. 2.00 crore
per month required for break even at a typical NH run facility. Rs. 5.00 to 7.00 crore per month required for break even at other typical corporate facilities in India.
Rs. 18 lakh
per bed is the typical cost at a typical NH run facility while it could be between Rs 60 to 80 lakhs at other private/corporate run hospitals.
main areas where "frugal innovation" has been put into practice - way hospitals are built and the way they function.
reduction in cost of construction and time to construct was achieved by L&T, leading construction company in India, while building a facility at Mysore. Dr. Shetty has slashed costs on everything from the operating table to the lighting.
major heart surgeries a day, 16 hours a day, 6 hours a week work schedule means the infrastucture is utilized to the maximum. It it this "Factory Model" that is primarily responsible for bringing costs down without compromising on quality. Other hospitals typically perform 3 surgeries a day.
number of hospitals this "frugal innovation" model has been succesfully rolled out to.