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Roads
Group B
In 2003, cataract
magnitude of work
needed to be done.
Standardization and
high productivity of
doctors allowed AECS
to provide free
surgeries
to 60% of
Doctors
salaries
patients
becoming highly
competitive
But AECS provided
opportunities to establish
their name amongst
peers
It allowed them to do
research, publish papers
to take part in
conferences and network
among peers
Such activities were
Expectation
believed to improve
s from
doctors competences
doctors and
and the visibility of their
other staf
hospitals
demand for
free
services
General
improvement in
living conditions;
requirement of free
medical services
coming down;
expectations of
people going up
Multiple Insurance
schemes, both
private and state
sponsored
Competition
Continued
incidence of
blindness in India
Impac
Impac
tt on
on
Aravin
Aravin
d
d Eye
Eye
Care
Care
Other areas such as Trab and combined procedures , retina and vitreous surgeries,
lacrimal surgeries and other orbit and oculoplasty surgeries were also gaining in
importance
Reduction in Eye Camps
Recommendations
The competitive advantage of Aravind Eye Care Systems lies in bringing down costs and
facilitating operational efficiencies
Catering to needs: The increasing demand for other services (such as Diabetes
Retinopathy, refraction correction and prevention and treatment of glaucoma)needs to be
catered to immediately
Cost decreasing innovation: High technical superiority of its doctors and research facility
should be leveraged to bring down costs and increase efficiency
e.g. the way AECS brought down costs by manufacturing IOLs (Intraocular Lenses) on
its own which allowed an $80 IOL to be procured at $5.
Similarly for other treatments such as Diabetes Retinopathy and glaucoma, innovative
cost efective solutions should be found out
Revenue generation system: With its free service camp programme firmly in place, AECS
needs to look beyond the free services
With rising income levels, the patients want better service and comfort if they are
staying
They want the hospital stay to be short, want private rooms and do not want shared
accommodation
Patients who are insured can be asked to pay for services provided by hospital.
Although this is difficult to implement, a method can be devised to facilitate this.
Attract new talent: AECS should try and attract new crop amongst doctors
They need to be made aware of the quality of work that they would be doing and the
amount of research that it entails
Improved salary levels (made possible by the revenue generation system) will ensure
doctor retention
Cultural chauvinism: While AECS management Is considering global opportunities, they
should get rid of cultural chauvinism and consider expanding services to North India as well
Clarity in how to achieve the mission:
The case presents good examples of convergence across its executives regarding the
basic mission
However there should be clarity regarding perceptions regarding the path of achieving
this objective.