MATERIALS
1. Health City Cayman Islands (9‐714‐510)
2. Narayana Hrudayalaya Heart Hospital Video
3. Expansion at Narayana Hrudayalaya Video
DESCRIPTION
Narayana emerged initially as the world’s largest focused‐factory, lowest‐cost, and high quality cardiac care facility, initiated in Bangalore. It then subsequently morphed into a large Health City, and then spread geographically across India, and via diagnosis‐by‐telemedicine all over the world. Now, it has opened a state‐of‐the‐art facility in the Cayman Islands, to serve the Caribbean, and within striking distance of large numbers of US under‐insured, but just outside US regulatory waters.
ASSIGNMENT QUESTIONS
1. The Coronary Graft Bypass Graft (CABG) procedure, one of the most common cardiac procedures across the world, would cost a patient from the Caribbean (at most) US $10,000 in the NH Hospital in Bangalore, India, and (at least) US $100,000 in hospitals in Miami, Florida (cost includes hospital costs, travel and lodging costs for patient and one accompanying relative, and other miscellaneous costs). What should be the price of the CABG procedure at HCCI?
Factors to be consider in determining the price are:
Dr. Setty values about affordability and affordable care of service for all.
Investment require from current and new lending sources for projected growth.
USA Insurance companies willing ness to pay ($80K)
USA government Medi care rate ($58K)
Local Caymanians pay to get CABs in USA ($102K)
Partners Ascent and their ROI
Repeatability of the model in USA.
In my view the price of the CABG should reflect the value set by Dr.Setty over the willingness to pay by the USA patient either via private medical insurance of the Medicare rate. The value should be about $35K, which still returns a health profit for the group and investors. See estimated commutations below
Cost of CABG
2014
NH
10,000.00
HCCI
35,000.00
USA
100,000.00
Build cost per bed