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Narayana Heart Hospital

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Narayana Hrudayalaya Heart Hospital
Cardiac Care for the Poor

Executive Summary The public health care system in India has long been a major issue for the country. Many citizens have been unable to receive the proper health care due to high costs and the inability to reach a capable hospital. Dr. Shetty has founded the Narayana Hrudayalaya Heart Hospital as a solution to this major issue. Utilizing a cost leadership strategy, he has been able to significantly reduce the costs of cardiac procedures. By implementing a government funded insurance scheme, he has also allowed more people than ever to have access to this health care. As the hospital has grown in success, Dr. Shetty has expanded his operations to reach a larger portion of India and to include a more diverse range of procedures. Having built a strong foundation, Dr. Shetty has set his hospital up well to expand globally.

Background
The Narayana Hrudayalaya Heart Hospital is in Bengaluru, India where it aims to service a higher than traditional percentage of the population. One of India’s biggest problems lies within its public healthcare system. In 2003, India had a growing population of 1.03 billion, making it the second large country in the world. Within this population, the wealth is not skewed evenly compared to most first world countries. It is estimated the top 20% of the population holds half of the country’s wealth, while leaving more than 250 million below the poverty line. To make matters worse for the poor, only 1% of the GDP is spent on public healthcare. Although private spending was higher, this still made India one of the lowest health-care spending countries in the world.
Part of the problem with the health care system was the deceit behind some of the numbers. For instance, the country has over 15,000 hospitals and almost 600,000 physicians; the second and fourth

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