Sunday, April 08, 2012

Aravind Eye Hospital, IIMA case study ..

some viewing and reading material on Aravind Eye Hospital, Madurai ..

http://video.google.com/videoplay?docid=-430943131005128104

TED Video

Aravind Eye Hospital, IIMA Case study link ..

Harvard Business Review case study and other important cases on the Aravind model of eye care .. http://www.aravind.org/aboutus/casestudiesonaravind.aspx

In a study published in HBR of 2010, carried out by Prof. Vijay Govindarajan, Tuck School of Business and Prof. S Manikutty from IIM Ahmedabad, (click here) five factors were identified as being responsible for the success of Arvaind Eye care.
First it is the extremely high levels of efficiency, while an ophthalmologist in an eye hospital does almost 8-10 cataract surgeries per day, an Arvind hospital eye doctor does about 25 cataract surgeries a day. Secondly when so many surgeries are done daily in the hospital, the Intra ocular lens that the hopital manufactures on its own, it is able to sell at $5 apiece while an imported IOL would cost anywhere above $80. The low cost of the lens helps support cheap surgeries and thus results in increased efficiencies in a vicious cycle.
The third factor is the economies of scale and assembly lines concepts that are taken from the industry helping increase operational efficiency, besides organising outreach camps nearer to the customer to generate the necessary demand. While Aravind Hospital does not invest much in advertising or other frill activity, it invests heavily in the latest state of the art machinery in the hospital and top world class training and exposure for its doctors and nurses.
The values imparted by the founder Dr. V Govindaswamy in eradicating needless blindness from the country has helped the hospital in offering more than 50% of its surgeries to the needy people in society free of charge and giving world class trainig to medical personnel from other hospitakls at very low rates.
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