Medanta-The Medicity: World Class Well being Care, With A Soul


Medanta-The Medicity: World class health care, with a soul

Picture: Amit Verma

Naresh Trehan: Maintaining well being care reasonably priced


As one in all India’s main cardiovascular surgeons, Dr Naresh Trehan is all the time pressed for time. When Forbes India went to interview him, he had simply stepped out of the working theatre. Sufferers have been streaming out and in of his chambers. It was solely after an hour of consultations that Trehan discovered time to debate his dream venture: Medanta-The Medicity, a multi-specialty medical institute in Gurgaon, modelled alongside the traces of built-in medical institutes corresponding to Mayo Clinic and Stanford College Medical Middle within the US.

Since its inception in 2009, the hospital has quickly grown and notched revenues of Rs 1,100 crore in FY2014. Its early success caught the attention of the Carlyle Group which, in December 2013, purchased a 27 p.c stake in it for Rs 960 crore from Avenue Capital. The deal values the corporate at Rs 3,550 crore, and places Medanta’s enterprise worth per mattress at Rs 2.8 crore in comparison with Rs 1.4 crore for Apollo Hospitals and Fortis Healthcare.

The person behind it
Trehan (68) is hardly an unknown entity within the medical world. Because the recipient of the Padma Bhushan and the Padma Shri, he has lengthy been within the public eye. Additionally due to the prominence of his first enterprise initiative, the Escorts Coronary heart Institute (later acquired by Fortis) in New Delhi, which he helped set up in 1988. He left the hospital after twenty years to arrange Medanta with co-founder Sunil Sachdeva.

The preliminary funding of Rs 1,000 crore was raised by a mixture of fairness and debt: A Rs 500-crore mortgage from Sure Financial institution and 6 public sector banks, and the remaining from Trehan, engineering and development group Punj Lloyd and Avenue Capital. Medanta has paid off many of the mortgage, with Rs 126 crore remaining.
 
Trehan’s mantra is “enterprise with a soul”. He desires it to be recognized that he isn’t taken with maximising returns for the hospital at the price of his sufferers. “Hospitals needs to be comfortable making a return of 10 to 12 p.c as an alternative of 25 to 30 p.c. In any other case, we are able to’t make well being care reasonably priced,” he says. Medanta’s internet revenue for FY2014 was Rs 187 crore.


Medanta-The Medicity: World class health care, with a soul

Why it’s a gem
The thought of Medanta was conceived in 2003, when Trehan determined to develop a medical establishment in India that will not solely ship top quality, reasonably priced well being care but in addition pioneer analysis. “I felt that if we have now to take India to a degree the place we could be happy with our well being care, we have to create establishments corresponding to Mayo Clinic,” says Trehan. Constructed on a 43-acre plot, Medanta turned operational in late 2009. It has a 1,250-bed hospital with 350 vital beds, a medical analysis centre and a world-class coaching centre for medical doctors. Its internet price is Rs 785 crore.

Its strategy to well being care differentiates Medanta from different medical establishments. The institute is working in direction of integrating fashionable drugs with conventional varieties corresponding to ayurveda, acupuncture, homeopathy and unani. “We all know that fashionable drugs is kind of efficient, however it is vitally pricey and really invasive,” says Trehan. “It cures illnesses, however doesn’t empower the physique to combat illnesses the way in which conventional drugs does. If we are able to make a fusion of the 2, we can have a robust new drugs which can be equally efficient at half the fee.”

The hospital already has therapies the place it makes use of allopathic and ayurvedic drugs. Trehan claims he has had early successes in these practices, which are notably efficient in neurological and most cancers remedy. “When throat most cancers sufferers bear radiation, it turns into actually tough for them to swallow meals or discuss,” says Trehan. “A pal who had this drawback was given an ayurvedic concoction earlier than the radiation and it eased his discomfort.”

To additional the intent of analysis, Medanta has additionally signed a memorandum of understanding with the College of Texas to arrange a medical school inside the institute’s premises.

Why it was hidden

There’s a distinct lack of ‘buzz’ about Medanta as a result of it has not but spent closely in advertising and marketing and promoting. As an alternative, it invests its returns again into the enterprise. Plus, its operations have been localised, as it’s presently based mostly solely out of Gurgaon. Nonetheless, enlargement is on the playing cards with Medanta set to open a hospital in Indore this 12 months. The purpose is to have a hospital within the capital metropolis of all states.

Dangers and challenges
One of many greatest challenges the institute faces is the rising value of well being care supply. Cognisant of that, Medanta is engaged on enhancing procedures and supply techniques to cut back prices.

Additionally, some quarters are sceptical of the non-traditional strategy to drugs. Dr Sanjeev Bagai, vice chairman and director-dean of Manipal Hospital in Dwarka, New Delhi, says: “Any different remedy used mustn’t include components that may counteract our medication or injury physique organs. There is no such thing as a printed information to point out the efficacy of conventional drugs. Actually, there may be sufficient information to point out it may be dangerous.”

However Trehan has religion in his strategy. And, with enlargement and worldwide tie-ups as a part of his technique, he’s quietly assured that Medanta will quickly turn out to be a major fixture within the well being care trade.

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(This story seems within the 25 July, 2014 subject of Forbes India. To go to our Archives, click on right here.)



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