Narayana Health

Apr 14, 20200 likes133 views

Narayana is a perfect case study that represents the concept of "Reverse Innovation" in emerging markets. Narayana Health Group is one of the leading multi-specialty hospital chains in India, focusing not only on one particular section of the society but making treatment affordable for those living in the remotest areas in India. Their vision propelled them to adopt the strategy of quality, affordability, sustainability, and economies of scale to structure their organizational capabilities around it. They have caused a disruption in the healthcare sector.

Course: Strategy and Leadership Course Code: MT5131
Professor: Brian Leavy

HELLO! ☻
2
Agransh
Anand
Maram
Aldawood
Yihui
Lu
Chris
Clancy
Maleeha
Ahsen
Sean
Campbell

India’s Healthcare Industry
4
20 $ x4
India’s healthcare
industry is estimated
to be at around $20
billion
A population that is
four times the size of
the USA
1%
India’s government
spending on
healthcare as a
proportion of GDP

6
Their Focus?
Quality Affordability Sustainability

1. How did Narayana deliver
world class services
With the lowest possible costs?

8
Economies of Scale
Fixed Salary Model
Division of Labour
Cross-Subsidized Pricing Model
Best Practices

9
Economies of Scale1
(Corporate Finance Institute)

10
Fixed Salary Model2
NH pays its doctors a ﬁxed monthly salary. This approach decreases hospital costs
per procedure as the number of procedures increases.

11
Division of Labour3
Stage 1 Stage 2 Stage 3

12
Cross-Subsidized Pricing Model4
NH has an international-outreach programme for medical tourism which
attracts full-paying patients from across 76 countries.

Operation
Management
Safety
Practices
Low-cost
approach
13
Best Practices5

2. Main Strategic
Challenges while expanding
Advise how to best address them?

Employee Retention
17
Suggestion
Explore the option of including a variable component in the
employees salary.

Stiff Competition in Bigger Cities
18
Suggestion
Partnerships Joint Ventures Acquisitions

Government Insurance Scheme and
Regulatory Practices
20
Suggestion
Get all of their hospitals empanelled

3. What policy makers from
advanced economies
Can learn from Narayana

Become more Efficient
22
High volume
of surgeries
Use of
Economies of
Scale
Commercial
approach to
purchasing
equipment
1 2 3

Partnerships
To provide affordable
post op care e.g.
Stanford
Digitised
Document
“The Narayana
Healthcare Way”
Operation
Breakdown
Top Surgeons have
more time
Process Improvement, Standardisation & Post Op
Care
23

24
WHAT IS THE MOST EXPENSIVE
INSTRUMENT IN A HOSPITAL?

“ “The doctors pen is
the most expensive
instrument in any
hospital”
- Dr. Shetty
25

Concentration
Track the Financial Daily
26
In their daily
accounting system
On the necessity of the
previous day’s
expenditure
Innovation

Hospital Construction
27
SPEED
NH’s ’s Mysore Hospital
was 150,000 sq. ft and
cost $6m dollars to build,
25% of the expected cost
in India.It was completed
in 8 months compared to
the usual 3 years in India.
LOCATION
NH’s business model
relies partly on volume of
patients. Building
hospitals close to large
populations allows them
to beneﬁt from
economies of scale.
DESIGN
The design of NH’s
Mysore Hospital was
compact, with reduced
open spaces, and used
prefabricated structures
to save costs.

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Outline of Human Motivation 1. Introduction to Human Motivation Definition of motivation Importance of understanding motivation Overview of motivational theories 2. Theories of Motivation A. Intrinsic vs. Extrinsic Motivation Definitions and differences Examples of each type B. Maslow's Hierarchy of Needs Overview of the five levels of needs Application of the theory in real-life scenarios C. Self-Determination Theory (SDT) Overview of intrinsic motivation and its three basic psychological needs: autonomy, competence, and relatedness The impact of SDT on personal growth and well-being D. Expectancy Theory Explanation of how expectations influence motivation Components: expectancy, instrumentality, and valence E. Goal-Setting Theory Importance of setting specific and challenging goals The SMART criteria (Specific, Measurable, Achievable, Relevant, Time-bound) 3. Factors Influencing Motivation A. Biological Factors Role of genetics and neurochemistry in motivation Impact of physical health and well-being B. Psychological Factors Personality traits and their influence on motivation The role of mindset (fixed vs. growth mindset) C. Social and Environmental Factors Influence of culture, family, peers, and society on motivation The impact of the workplace environment and leadership styles 4. Motivation in Different Contexts A. Education How motivation affects learning and academic performance Strategies to enhance student motivation B. Workplace Importance of employee motivation for productivity and job satisfaction Techniques for fostering motivation in the workplace C. Personal Development Motivation for self-improvement and personal goals The role of habits and routines in maintaining motivation 5. Challenges to Motivation Common obstacles to motivation (e.g., procrastination, fear of failure) Strategies to overcome motivational challenges 6. Conclusion Summary of key points The significance of understanding motivation for personal and societal growth 7. References A list of academic sources and literature on motivation

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Narayana Health

1. Course: Strategy and Leadership Course Code: MT5131 Professor: Brian Leavy

2. HELLO! ☻ 2 Agransh Anand Maram Aldawood Yihui Lu Chris Clancy Maleeha Ahsen Sean Campbell

3. Narayana Health Group Introduction

4. India’s Healthcare Industry 4 20 $ x4 India’s healthcare industry is estimated to be at around $20 billion A population that is four times the size of the USA 1% India’s government spending on healthcare as a proportion of GDP

5. 5 (Harvard Business Review, 2013)

6. 6 Their Focus? Quality Affordability Sustainability

7. 1. How did Narayana deliver world class services With the lowest possible costs?

8. 8 Economies of Scale Fixed Salary Model Division of Labour Cross-Subsidized Pricing Model Best Practices

9. 9 Economies of Scale1 (Corporate Finance Institute)

10. 10 Fixed Salary Model2 NH pays its doctors a ﬁxed monthly salary. This approach decreases hospital costs per procedure as the number of procedures increases.

11. 11 Division of Labour3 Stage 1 Stage 2 Stage 3

12. 12 Cross-Subsidized Pricing Model4 NH has an international-outreach programme for medical tourism which attracts full-paying patients from across 76 countries.

13. Operation Management Safety Practices Low-cost approach 13 Best Practices5

14. 14 Can you think of any CHALLENGES?

15. 2. Main Strategic Challenges while expanding Advise how to best address them?

16. 16 Ret Employee Retention1 Stiff Competition in Bigger Cities2 Lack of Brand Awareness3 Government Insurance Scheme and Regulatory practices4

17. Employee Retention 17 Suggestion Explore the option of including a variable component in the employees salary.

18. Stiff Competition in Bigger Cities 18 Suggestion Partnerships Joint Ventures Acquisitions

19. Lack of Brand Awareness 19 Suggestion

20. Government Insurance Scheme and Regulatory Practices 20 Suggestion Get all of their hospitals empanelled

21. 3. What policy makers from advanced economies Can learn from Narayana

22. Become more Efficient 22 High volume of surgeries Use of Economies of Scale Commercial approach to purchasing equipment 1 2 3

23. Partnerships To provide affordable post op care e.g. Stanford Digitised Document “The Narayana Healthcare Way” Operation Breakdown Top Surgeons have more time Process Improvement, Standardisation & Post Op Care 23

24. 24 WHAT IS THE MOST EXPENSIVE INSTRUMENT IN A HOSPITAL?

25. “ “The doctors pen is the most expensive instrument in any hospital” - Dr. Shetty 25

26. Concentration Track the Financial Daily 26 In their daily accounting system On the necessity of the previous day’s expenditure Innovation

27. Hospital Construction 27 SPEED NH’s ’s Mysore Hospital was 150,000 sq. ft and cost $6m dollars to build, 25% of the expected cost in India.It was completed in 8 months compared to the usual 3 years in India. LOCATION NH’s business model relies partly on volume of patients. Building hospitals close to large populations allows them to beneﬁt from economies of scale. DESIGN The design of NH’s Mysore Hospital was compact, with reduced open spaces, and used prefabricated structures to save costs.

28. 28 THANKS!Any Questions?

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Narayana Health

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