Various Low Cost Models for Health Care.

Effective Cures Need Not be Expensive

So far most of the blogs are on low cost medication;  non on hospitals, health insurance and health care delivery.  Health care will continue to be major industry and expenditures in all nations inspite of the financial crisis.  Money will be made (and many families will be bankrupt) from health care

There are several models for low cost health care.

The Aravind Hospital by Dr.  V

Dr V is now deceased and established  the Aravind hospital.  It is entirely a private business model relying on innovation.  It is started as one unit and now has several branches and has operated on over 2.4 million cataracts.

It relies on several innovation:

l.  Economies of scale and efficiency.  The patients are gathered in various centers for funneling to the operating centers.  An Aravind MD operates an average of 860 patients a year;  the ordinary MD just 200 patients.  Using the same principle as McDonald, Dr. V wanted to operate on million Indians.

2.  Use of paramedics and para nurses  -  Running nurses to get instruments who are high school graduates and medical assistants are trained to assist the very few qualified MDs and nurses who are available

3. Having an integrated system;  having your own lense factory

4.  Cross subsidy.   The very few paying patients subsidizes the many poor patients that Aravind hospital serves.

Aravind Hospital

 Low Cost Hospital, Entrepreneur's Passion

This is the idea of Dr. Devi Shetti, former a heart surgeon of NHS in UK, who envisions a health city. He proposes a $l a month Yeshasvini health insurance scheme and is most welcome to the politicians.  The amount is supposed to take care of health needs of most Indians

In his scheme, the open heart surgery is to cost  only $800.00 per and this is l0x the cost in US or UK.  He has partnered  with a contractor to build a l story low cost hospital building.  It would cost only $4 million  vs $40 million it would ordinarily cost.

The elements here for the cost management are the ff:    health contribution, low overhead construction cost;  the self sacrifice of the Surgeon, Dr. Shetti

Low Cost Health Care in India

Public Policy, Partnership with Private Sector in Thailand

The Thailand example has been cited by no lesss than the UN.  In Thailand, for any disease you pay only 30 baht (or one dollar) and the capitation is l,200 baht or $40.00.  This is made possible by:

l.   Affordable insurance;

2.  Political will (the king wants it, it is the law Prime Minister Thaksin implemented this)

3.  The government put the price caps on all procedure;

4.  The government transfers the health care responsibility to private hospitals (which own 50 of all health care facilities) and pays them according to the budget and the capitation.

So the masses love Thaksin and would have been reelected if he were not exiled.   Of course  many doctors who felt the pinch of the cap hated him for this.  But this is good for many Thais.

Thailands $l health insurance scheme

30 Baht Health Scheme in Thailand

l.  How do the above articles motivate you if you in the public policy sector as DOH?

2.  What changes are  possible?

3.  If you are a Health Care leader, in public or private sector, what can be your action program?

4.  As an entrepreneur, knowing that the health care sector is large booming opportunity, what are the possibilities?  What changes can you handle by the horns? or be in charge of?