Obstetrics for the Ordinary
26 million babies will be born in India this year and an astonishing 57% will be delivered without the supervision of skilled health care professionals. As a result, over 100,000 women will die due to the lack of adequate care. As indicated by several other posts on this blog, India’s health care infrastructure ranks amongst the worst in the world. Government hospitals are grossly under-resourced and often corrupt, while private hospitals are out of reach for the vast majority of the country’s poor and middle class. At the lower end of the spectrum, a delivery in a private hospital costs about Rs 25,000 (about $550). This is about two-thirds the average annual household income.
Through a unique combination of expertise, a passion for change, and a compelling business model, LifeSpring Hospitals aims to drive a wedge through those numbers. As a joint venture between public sector contraceptive maker Hindustan Latex and New York-based social investor Acumen Fund, LifeSpring was set up to be a chain of maternal care hospitals for low-income households. Its first hospital was set up in Hyderabad in 2005 and it now has a total of 9. It plans to have 18 hospitals by the end of this year and 150 hospitals by 2015. Each hospital can serve about 10,000 women per year, so the impact LifeSpring will soon have is tremendous.
At LifeSpring, a regular delivery can cost as little as Rs 2000 (about $45). A Caesarean section costs as little as Rs 7000, which is just one-fifth the cost of a private hospital. All this and the hospital chain is profitable—simply by applying principles of business that would be intuitive in almost any other company. LifeSpring sets up small hospitals, with typically 20 to 30 beds each, primarily near slum localities. This way, real estate costs are low, the hospitals generate high footfalls and vacancy rates are kept low. LifeSpring doctors, on an average, perform four times as many operations as their peers in other private hospitals. By focusing on just maternal care, the hospital chain is able to standardize clinical procedures and kits, further bringing down costs. Then, like other social ventures, LifeSpring utilizes a cross-subsidy model, where higher income women can choose a more expensive semi-private or private room, allowing procedures for lower income women to be cheaper.
Unlike most hospitals in India, private or public, LifeSpring is uniquely customer focused. Its medical professionals are forthcoming in their communication and cheerful in their approach. As CEO Anant Kumar says, “After all, pregnancy is no disease. So, why should we call them patients?” With its aggressive growth plans, LifeSpring is constantly looking for obstetricians and gynecologists, radiologists, surgeons, pediatricians, anesthesiologists, nurses and other health care professionals. With Indians accounting for 5% of America’s physicians and 10% of America’s medical students today, LifeSpring could be an excellent opportunity to gain experience and give back all at once.