New Avatar of Ayurveda
AyurVAID hospital group is leading the transformation of
ayurveda into a mainstream healthcare system beneficial to all segments of society,
increasing both the quality and the accessibility of treatment available, reports
M Neelam Kachhap
What
do you expect to see when you walk through the doors of an ayurvedic hospital?
Indian ambience, massage rooms, neatly dressed receptionist but not a certificate
from the National Board of Accreditation for Hospitals and Healthcare Providers
(NABH) adorning the front wall. Yes! An NABH certification captures your attention
as soon as you enter Indias unique ayurvedic hospital AyurVAID.
This is not the only landmark achieved by this three-year-old
hospital, located at Domlur, Bangalore. The hospital has recently been approved
by the Karnataka Government to provide cashless facility for ayurvedic treatment
to all state government employees and their families. With this AyurVAID has
become the first and only ayurvedic hospital in India to receive quality accreditation
and government approval for its facility.
The Hospital
Rajiv Vasudevan CEO,
AyurVAID Hospitals
AyurVAID is run by the umbrella company Kerala First Healthcare
Services. The brain child of Rajiv Vasudevan, AyurVAID Hospitals integrates
classical ayurvedic with modern allopathic practice to treat chronic medical
conditions such as diabetes, arthritis and stroke. The first two hospitals are
in Kerala: a 15-bed one at Ernakulum and a 30-bed one at Aluva.
With a current strength of six hospitals and health centers
across five states in India, AyurVAID has grown to be a chain of hospitals,
providing in-patient and out-patient facilities with pharmacy, consultation
and a healthy ayurvedic diet. It not only provides curative but also preventive
treatment for severe chronic diseases. AyurVAID has also introduced a low-cost
hospital format called AyurSEVA, located in poor communities such as Dharavi,
a slum of Mumbai, featured in the Bollywood film, 'Slumdog Millionaire'. However,
all the hospitals abide by the same standards of service. AyurVAID is
patient-centric and uses standardised processes to deliver safe, effective and
affordable care to all strata of society especially poor communities,
informs Rajiv Vasudevan, CEO, AyurVAID Hospitals.
Leadership Vision
AyurVAIDs vision is to lead the transformation of ayurveda into a mainstream
healthcare system beneficial to all segments of society, including low-income
households. It is known that the burden of chronic diseases has the most visible
debilitating effect on the poor and their ability to earn a daily living. AyurVAID
aims to address these healthcare issues and provide care through the ayurvedic
system of medicine. AyurVAIDs vision is to lead the transformation
of ayurveda into a mainstream healthcare system, avers Vasudevan. The
Hospital wants to demystify the aura of 'magic' hovering around ayurveda and
bring to light its true value as a system of healing. It is not that ayurvedic
treatment is not available in India; however, it is marred by individuals and
groups who project it as an unexplained magical healing method, laced with dark
rituals, enticing patients from India and abroad. On the contrary, ayurveda
is an ancient form of medicine which goes beyond pain relief and rejuvenation,
backed by literature. This system of medicine has also evolved over time and
today is capable of taking care of a large group of aliments in turn promising
to take the load off the allopathic system of medicine, which in India is already
burdened. Talking about the vision Vasudevan says, The aim of AyurVAID
is to spread the message of aurveda to larger populations through a convenient
system which is acceptable by the people. AyurVAID is poised to be a profitable
enterprise with a social purpose.
Business Strategy
AyurVaid has changed the light in which we generally see aurveda. It is trying
to revive this ancient art of healing and bring it closer to the people. However,
it is not only a unique social enterprise but a profitable business model also.
The business model is sustainable and scalable healthcare service delivery
using the ayurvedic treatment as a base, explains Vasudevan. It is a for-profit
commercial business model, which allows consumers to choose so as to impact
maximum number of people. Our business model is definitely a for-profit
model, adds Vasudevan. Its delivery model allows for cross-subsidisation
by serving high-end patients as well as low-income patients. Service delivery
format is standardised healthcare delivery aligned to NABH standards and all
units have an in-patient, out-patient, pharmacy and consultation, Vasudevan
further explains.
AyurVAID opened its first center in Kerala, an intelligent strategic step as
ayurveda needs no introduction in Kerala and the patients there already use
it as a means of treatment. However, venturing out of Kerala and moving to the
Mumbai suburbs was a surprise move. Vasudevan explains, We do not have
to go the extra mile of promoting ayurveda in Kerala. It is a very well accepted
treatment module there. And it is with this belief and conviction that
people will see the benefits of ayurvedic treatment and turn to ayurveda as
a means of treatment, Vasudevan has gone ahead and opened more centers in different
states finally targeting whole of India. We are creating a reliable and
replicable system akin to allopathy which will make ayurveda the choice of millions
with chronic illnesses over the next decade. AyurVAID will of course be in the
front leading that paradigm shift," emphasises Vasudevan. AyurVAID hospitals
are the only ayurvedic hospitals accredited by 12 of India's leading medical
insurance service providers.
Money Matters
Treading an unknown path was not easy for Vasudevan, but he had years of experience
dealing with ayurvedic preparations to fall back on. His firm belief in this
system of medicine led him to pool in all his savings and convince a few friends
to invest Rs 55 lakh initially into the project. As the project took off Vausdevan
was able to convince more people and soon he managed to get external funding
from the US based social investor Acumen Fund which till date has invested Rs
six crore in the project. Our initial investment was Rs 50 lakh and Acumen
further invested Rs 7cr confirms Vasudevan. We reached breakeven relatively
fast, but cycle takes time to stabilise. He is currently busy scouting
for investors for the third wave of funding for further expansion.
According to Vasudevan it is a sustainable model where investments are low with
even lesser gestation period. Advantages for an ayurvedic centre are that
it is low on capital investment and also RoI happens in three to four years.
This is a lean business model. In a regular allopathic hospital cost per bed
varies from Rs 75 lakh to Rs 150 lakh whereas in an aurvedic hospital cost per
bed is Rs two-three lakh. Thats the beauty of it all! For Rs three lakh-a-
bed serious medical care can be delivered which tackles a big chunk of diseases,
informs Vasudevan. Most of the chain hospitals are small 15-30 bed facilities
completely adhering to quality standards.
Adding to the strategic strength of AyurVAID is its operations,
which is perfectly aligned with the organisations vision and quality is
achieved with highly standardised procedures for all services provided. The
location of the hospitals is strategically chosen; away from the clutter of
the city, they provide a peaceful and serene setting to the target customer.
New Hospital
AyurVAID has set up an 18 bed AyurSEVA Hospital in
the heart of Dharavi, in Mumbai in March 2009 and a 15 bed Ayur SEVA Hospital
in Ramamurthy Nagar, in Bangalore in February, 2009.
The result is an in-patient service offering for
chronic disease management at the rate of around Rs 750 per day, even
in cities like Mumbai and Bangalore.
Typically, medical insurance products targeting
BPL and vulnerable segments of society have coverage of up to Rs 25000.
With the very low cost of in-patient treatment (Rs. 5,000 to Rs. 7,000
per week) appropriate care becomes accessible to the poor, explains
Vasudevan.
AyurVAID has collaborated with a leading private medical
insurance companies to design a breakthrough insurance product with 'accessibility
maximising' features, targeting low income communities. AyurVAID also
collaborates with a leading Bangalore based NGO to extend primary healthcare
services to unorganised laborers across Bangalore.
Perhaps, this is the first time that any ayurvedic organisation
in the private sector has systematically addressed the core and major
challenges to begin the process of repositioning ayurveda in the minds
of different stakeholders - general public, government, insurance companies.
Challenges
In India, 12 million deaths a year are associated with chronic diseases. Low-income
families are disproportionately affected due to the lack of affordable treatment
and preventive care. Treating chronic disease drains away resources and affects
the ability to earn livelihoods, creating a downward spiral of disease and poverty.
However, the challenge faced by AyurVAID hospital is to make ayurveda the choice
of the masses for treatment of chronic diseases.
Another challenge is to find trained dedicated staff. At present AyurVAID boasts
of a good number of doctors as well as nurses at each facility. However, to
find people with the right bend of mind is a little difficult. Ayurveda
physicians undergo rigorous five-year education programmes that include detailed
study of the classical ayurveda medical science as well as the essentials of
modern medicine, surgery and pharmacology. Despite demand for their services,
a lack of health infrastructure means the qualified and government-accredited
ayurveda physicians are underutilised.
Yet, Vasudevan feels that it is possible to sustain and scale up this model
of healthcare delivery. Its possible to take aurveda to the level of allopathy,
the market size for both medicine and service in ayurveda is approximately Rs
10,000 crore.
Beyond this there is also the matter of a pricing model. A good pricing model
is crucial to the business and needs to be effective to contribute to the stability
of the hospital. The average price of an out-patient treatment level is about
Rs 1000. By taking this approach, AyurVAID is increasing access to healthcare
for the poor in a sustainable and scalable manner, while simultaneously expanding
AyurVAIDs market presence and building a long-term customer base for the
company.
In fact a look at the comparative cost of ayurvedic versus allopathic treatment
brings out the pricing difference. Vasudevan explains with two examples.
There are three aspects to this comparison.Firstly, a root cause intervention
versus symptomatic intervention. Secondly, consider the lifetime costs of having
a chronic ailment.
The third consideration ss the non cost aspects, which are quality of outcomes(core
medical benefits), quality of life (on account of medical management,physical
and mental function) and finally, the impact on workplace (productivity), home
(family) of person with chronic ailment.
For example, a patient with ikuchi-Fujimoto disease pays
Rs 20,000 for allopathy consultations, diagnostic tests, and medicines. But
according to Vasudevan, the same patient paid Rs 1,008 at AyurVAID.
Similarly, a rheumatoid arthritis patient was advised surgery
for both knees at an estimated cost of Rs 1.5 - 3 lakh. Surgery was avoided
with conservative ayurveda treatment at AuurVAID costing Rs 36,000.
Community Health Initiative
AyurVAID has developed the AyurSEVA brand of hospitals, which is
a community initiative of AyurVAID Hospitals, offering AyurVAID services at
affordable rates to low-income communities typically earning between Rs 6000-8000
per month. With identical medical standards, AyurSEVA units are able to bring
down the cost of treatment by offering a general ward format and employing a
lower cost of establishment and operations. Being close to urban slums, they
reduce the total cost incurred by the target customer to avail the service,
which works in their favour.
Growth Plan
The hospital chain is getting ready for the next wave of growth. The immediate
plan is to get one more NABH accreditation for a different unit at Bangalore
followed by the other units.
Other than this, the company is seeking a third round of funding mostly from
a PE source. However, Vasudevan also adds that they are in no hurry to expand
as they are concentrating on perfecting the business model, seeking clarity
of the business model adopted and further refining it to settle into the fast
growth path and strengthening its brand to be known as quality healthcare provider.
Currently all the hospitals are managed by the parent company but in future
AyurVAID may look at a franchise model or a different business model to expand
into Northern and Eastern states. Soon, cities like Bhopal and Kolkata will
see new AyurVAID Hospitals. As we grow we will look at partners,
reveals Vasudevan. Expansion in Mumbai is also on the cards.
AyurVAID is also focusing on the public healthcare delivery pie. We are
keen to work with the government. Our mission is to take ayurveda to the masses
and there is scope in the primary healthcare space. In fact National Rural Health
Mission (NRHM) has provision for ayurveda and a large number of recruitment
has taken place but the implementation is yet to happen,divulges Vasudevan.
At present AyurVAID procures classical drugs from a reputed company and distributes
it through their pharmacy, but in future the company may be interested in its
own brand of medicines. Right now we are not thinking of our own brand
of medicine but some day we will take it up, says Vasudevan.
mneelam.kachhap@expressindia.com
Article source: http://www.expresshealthcaremgmt.com/201107/market10.shtml