Case Study Of Care Group Health And Social Care Essay

Case Study Of Care Group Health And Social Care Essay 100 years after the first heart surgery less than 8% of the world’s population can afford it. If a solution is not affordable it is not a solution† says Dr.Devi Shetty, Chairman of Narayana Hrudayalaya. His thought to make cardiac surgery affordable and cater to the needs of those who are in the most need of it triggered the birth of Narayana Hrudayalaya. Dr.Devi shetty did his post graduate studies in cardiac surgery and worked at cardio thoracic surgery unit at Guy’s Hospital, London. He returned to India to work and serve the poor. His initial setups and work with other private hospitals didn’t give him the desired satisfaction and thus he ventured out to start a hospital of his own. With the support from his family owned business ‘Shankar Narayana Construction Company’, he started Narayana hrudayalaya a 250 bedded cardiac hospital in Bangalore city, India on 8th May 2001, with an initial investment of around Rs. 70 crore ($).The group has grown 25 to 30 per cent year on year. The hospital/health care group was instituted and is run under the name of Narayana Hrudayalaya private limited incorporated on 19 July 2000 according to the norms of the companies act, 1956 of India. All its present possessions come under the same name. Present stature: In a decade of starting its operations the health care group has grown and expanded its services nationally and internationally. Today the company holds many hospitals and health care institutions under its name. Starting with a single cardiac hospital in Bangalore it has now branches in various cities of India and planning to open branches in Mexico City, Mexico and Cayman Islands, USA in the coming years. The rate of growth and expansion of the hospital to other parts of India has been phenomenal. Narayana hrudayalaya pioneered the Indian health care market with a vision towards high quality but low cost health care. It helped to fill in the gap left by the other private hospi tals which catered to the few rich at the top of the pyramid with high costs for care and the government health care setup which struggled to provide basic medical services with only around 0.9% GDP (WHO) for over a billion people. Even as its expansion strategy was mainly oriented at the prospects of delivering affordable health care to the lower and middle income sections of the society. In doing so Narayana Hrudayalaya followed a flexible policy to establish itself in other cities of India. It brought in the concept of Management agreements where in it started to acquire hospitals that could not run to capacity due to lack of funds and other resources or institutions/trusts that showed interest to participate in bringing affordable care to the people in their regions. Narayana Hrudayalaya leased the hospital and the existing infrastructure from such hospitals. The hospital was managed by Narayana Hrudayalaya according to their standard protocols but a monthly/annual payment was m ade as per the lease agreements. In some instances Narayana Hrudayalaya was invited by state governments by provision of land subsidies or in the forms of potential investments to open new hospitals. A huge spurge can also be seen in the expansions during and after financial year 2007-2008 due to external investments coming into the group. Biocon Pvt.Ltd, an Indian biotechnology company came forward to collaborate in building a specialty oncology hospital in Bangalore, India. In February 2008 Global investment banks American International Group Inc. (AIG) and JPMorgan have taken a 25% stake in the company for Rs 200 crore ($) each.