Narayana Hrudalaya Heart Hospital – Health System Example

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"Narayana Hrudalaya Heart Hospital"  is a worthy example of a paper on the health system. There are numerous heart hospitals in the world that practice heart surgery as a way of saving humans life. Under the study topic, Narayana Hrudayalaya heart hospital is one exceptional hospital that was started by Dr. Devi Shetty in the year 2001 in Bangaluru, envisioned to avail affordable healthcare to the poor population all over the world. Under a thorough analysis of the hospital in question, I concluded that this hospital has been successful in its heart surgery operations.

This has been contributed by several factors that ensure that it has been successful. High-profit margins; we have been able to link this hospital’ s success with its ability to perform its operations with a lot of efficiencies which has led to the achievement of high-profit margins, that is 7.7% level after all the necessary taxes have been deducted, compared to other American hospitals that are at the rate of 6.9%. It is expanding its operations to other countries by constructing new hospitals to increase the accessibility of their health services and thus reduce the costs of production across the global market.

This definitely leads to the firm freedom of enjoying economies of scale (Jones 2011) Customer numbers; Narayana Hrudayalaya heart hospital has shown its prosperity by serving a huge number of customers on a daily basis, whereby even there has been an approximation of about 15,000 people from different foreign countries. This capacity of being able to attend to patients from all over the world has made this hospital to diversify its operations, gain stability in the market and even have the market power to dominate the health services market.

This has been clearly illustrated by its ranking in the top 50 most innovative health centers in the world. Narayana Hrudayalaya's heart hospital has been able to achieve its goals and be termed as successful through the optimization of the following underlying factors. (Radjou, 2012). Efficiency; the fact that this globally recognized hospital makes quite a commendable profit level, this factor makes it an efficiency giant. It has been able to utilize the long working hours to serve a large number of patients.

This has been achieved by performing many surgeries within a 24 hour working period. Narayana Hrudayalaya's heart hospital ideology of offering the telemedicine services for free stems from its successful state, that has been mostly contributed by the efficiency of the operation. (Khanna, 2007). Low-cost services; on the basis of the Narayana Hrudayalaya heart hospital vision, the person behind this great innovation was aiming to provide better health care to the poor people. Under this framework, within which the hospital’ s activities are operated, the various branches of this well-performing health center have been obligated with the provision of cheap health services throughout the world.

This multiple-branch cardiac care center has been able to attract large numbers of patients due to the prevalence of the fewer costs health services, making the overall profit turn up to be very high compared to the case of those hospitals that offer expensive health care services. The high returns are also re-invested through expanding the health center’ s operations in other foreign countries, thus ensuring economic stability is maintained (Kunders 2004). Under the issue of insurance scheme, the Narayana Hrudayalaya heart hospital has been backed up by the Indian government in its operations, where the national population has been all insured by the state for the health care costs.

This kind of insurance has always been initiated as a health care reform program, whereby the Indian government has spent about 1% of its GDP on the issue of public health. As part of the health care systems, Narayana Hrudayalaya heart hospital has been incorporated in the national insurance scheme. This has benefitted the heart hospital since the government is even going to extend of even providing modern health care facilities to these health centers.

The government has also made sure that there are enough qualified physicians in these health care centers; hence the service delivery system has been made effective and performing. The insurance scheme has been put in such a way that it is being enforced by the law (Henderson 2012).   Although under this insurance program, there is a prevalence of some challenges facing this particular cardiac care center. In India, the dual pressures of poverty and a large population make effective healthcare delivery especially challenging.

There is no national health system and health spending accounts for 4.2 percent of GDP, compared to 9.8 percent of GDP in the UK. Private health spending represents 73.8 percent of health spending; the highest proportion in the world, in comparison private spending represents 18.3 percent of all UK health spending (Long, 2009). Of private spending on health in India, 90 percent is out of pocket, with two out of five hospital interventions paid for by individual loans or the sale of assets. The largely rural population of India means that access to healthcare is low, with less than one doctor per 1,000 people and 1.1 hospital beds per 1,000 people.

Although 72 percent of India’ s population lives in rural areas, 80 percent of doctors, 75 percent of dispensaries and 60 percent of hospitals are in urban areas. In addition, 78 percent of health infrastructure is secondary care services, with 11 percent primary and 11 percent tertiary (Downing 2011). The primary care network suffers from severe staff shortages with most clinicians preferring to live and work in urban areas.

Increasing the health resources of the nation requires substantial investment. To achieve the target of two beds per 1,000 populations by 2025, an additional 1.75 million beds are needed. Similarly, to click at a ratio of one medical doctor per 1,000 individuals by 2025, an additional 700,000 doctors will be required (Govindarajan, 2012). According to the explored study area, as an adviser, I would prefer that Dr. Shetty undertakes the three business plans for the Indian public to have the disease-free population, which has been always a necessity for any economic growth throughout the world.

The three business plan is inter-twined in that, ignoring of one plan would eventually lead to externalities which would negatively affect the other two plans. Therefore, Dr. Shetty should undertake all the business plans. In addition to this, he should be incorporating the disadvantaged groups in the economy such as the mentally handicapped and the disabled, in his business plans.       Conclusion As per the study case of Narayana Hrudayalaya heart hospital, the majority of the existing published theories indicate that India is facing a high population growth, which makes the accessibility of the health care services very difficult.

The suggestion of the expansion strategy of the Narayana Hrudayalaya heart hospital into several branches within the country will reduce the problems of service delivery.


Kate Long (2009). Governance and poverty reduction: beyond the cage of best practices. New Delhi: PHI Learning.

Michael Downing (2011). Interventional cardiology. New Delhi: Reed Elsevier.

Govindarajan, V. (2012). Reverse innovation : create far from home, win everywhere. Boston: Harvard Business Press.

Henderson, J. (2012). Health economics and policy. Mason, OH: South-Western, Cengage Learning.

Jones, T. (2011). Future agenda the world in 2020. Oxford, UK: Infinite Ideas.

Khanna, T. (2007). Billions of entrepreneurs : how China and India are reshaping their futures--and yours. Boston, Mass: Harvard Business School Press.

Kunders, G. (2004). Hospitals : facilities planning and management. New Delhi: Tata McGraw-Hill.

Radjou, N. (2012). Jugaad innovation : think frugal, be flexible, generate breakthrough growth. San Francisco, CA: Jossey-Bass.

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