Hospital care: Making the rich pay for the poor

By Our Special Correspondent

BANGALORE, APRIL 18. There is a shift in the thinking of corporate hospitals, which till now have flourished catering to one particular segment of society. The shift is taking place in Bangalore, and two corporate hospitals, specialising in heart care, have initiated the concept of corporate hospitals at non- corporate prices, thus making facilities available to the economically weaker sections.

The two hospitals are the 750-bed Narayana Hrudayalaya in Bommasandra and the 75-bed Trinity Hospital and Heart Foundation in Basavanagudi.

At Narayana Hrudayalaya, the concept is of cross-subsidising costs, whereas at Trinity, the group of young doctors has slashed their tariff for heartcare outright. Dr. Devi Prasad Shetty, the specialist behind the former, states that as setting up of hospitals, particularly for the weaker sections, is financially unviable, a via-media had to be worked out. The concept is simple -- the rich pay for the poor.

Of the 750 beds that the hospital will eventually have, only 25 per cent will be reserved for the elite and they will be charged for the services the hospital will provide. The 25 per cent luxurious suites will have modern facilities such as television, phone, fax, Internet and secretarial services. The revenue generated from this segment will enable the hospital to charge only the bare costs of hospitalisation for the economically weaker sections.

Dr. Devi Prasad Shetty feels that the need for such set-ups is urgent as it will reduce the gap between demand and supply. At present, only 45,000 heart operations are performed annually in India when about 25 lakh persons in the country need to undergo heart surgery. The team has ambitious plans of building 10 hospitals in the State in association with various bodies. These hospitals will be run on a non-profit basis.

The Trinity Hospital, which is run by a group of young doctors, some with NRI status, is clear in its USP -- a corporate hospital at non-corporate prices.

Dr. Veerappa Reddy and Dr. B.G.Murlidhar mention that the hospital's pricing of heartcare will certainly have an impact on the other hospitals. In the general ward, a coronary artery bypass graft (CABG) will cost Rs. 75,000 (inclusive of all packages -- investigations, seven-day stay and drugs) and in the deluxe ward it will be Rs. 1.20 lakhs -- a slash of nearly Rs. 40,000 over other corporate hospitals. The rates for angioplasty are Rs. 45,000 and Rs. 70,000 (three-day stay, procedure cost, and drugs) and for angiography they are Rs. 7,000 and Rs. 12,000, respectively.

Dr. Murlidhar mentions that this is possible as the doctors themselves will "run the administration," though there will be a full-time administrator. Cost-cutting will be in the inventory of medicines and professional fees. Dr. Murlidhar says that most corporate hospitals charge patients exorbitant sums as professional fees, but pay doctors much less. In most corporate hospitals, professional fees account for 10 per cent of the overall billing to a patient.

The hospital, Dr. Reddy, says will soon have a policy to determine the economically weaker sections, and decisions will be taken by the doctors themselves about cost-cutting. Such a move will make available heartcare treatment at a "reasonable" cost.

The 75-bed Trinity Hospital has three major operation theatres and one of the most modern cathlabs in Karnataka. It will provide 24-hour services in cardiac emergencies, angiography, angioplasty, trauma care and pharmacy. The project cost is Rs. 10 crores.

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Section  : Southern States
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