Before starting, I want to give you a disclaimer that I can be completely wrong and hence take it with pinch of salt.
Point 1
No one focuses on giving affordable procedures and surgery. When you have decided that you will not earn by increasing the cost drastically of the procedures and surgery, innovation needs to happen to increase profits and maintain growth. No one talks about the affordability in hospitals except Narayana Health.
It is not all talks, Here are my reasonings(still in analysing mode though) →
- They increase the surgery per doctor to compensate for the increase in cost.
- They have new inventory management to reduce costs.
- They are using technology and introducing apps to make the nurse and other employees productive.
- They are introducing apps to streamline certain manual processes and their app is getting adopted with positive reviews. For reference comparing the reviews of app of max and nh.
Ref → Finology article
According to me the hospitals should remain affordable for direct patients as even if you have the policy the claim settlement ratio is not healthy in many insurance companies and even most people don’t have health insurance.
Here are the claim settlement ratio for the few insurance companies(Source : Ditto)
Start Health → 83.07%(average of last 3 years)
ICICI Lombard → 86.67%(average of last 3 years)
Niva Bupa (erstwhile Max Bupa) - 90.74%(average of last 3 years)
Point 2
They have not stopped here and they are testing to bring the clinics for the primary care(something new done by private hospitals I guess).
The are also thinking of coming with heath insurance.
Final Note
It is like they really are looking to solve the most important problem for the humans, the healthcare at the affordable rate. Until and unless it does not impact their profits and growth, I will prefer the NH any day when compared to the Max hospital.
The zero to one that they are doing is trying to provide healthcare at the affordable rate by being profitable and showing growth.
Reviews of NH hospitals on google
Reviews of max hospital
Please check the reviews of the Medanta and you will be surprised.
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