How to set up an Eyecare Hospital Chain

Posted on 26 Aug 2021

Introduction:

Are you planning to build or restructure an eyecare hospital in India? Looking for information about the major eyecare hospital that are available in India? Are you looking to find out which part of the of the city is best to venture in or what all facilities are available and what all should be planned for a new setup? In this article Hospaccx Healthcare Consultancy has mapped all on major players in terms of eyecare hospital scenario in India.

Below is the superficial and macro level survey. If you need a refined market and financial feasibility or any other study related to eyecare hospital you can contact Hospaccx Healthcare business consulting Pvt. Ltd on info@hhbc.in or hospaccx.india@gmail.com Or you can visit our website on www.hospaccxconsulting.com.

India is about to enter the fourth stage of the demographic transition post 2026. The old age population is already on the rise and in the fourth stage it will increase significantly. This combined with the rise of Non-Communicable Diseases (NCDs), the branch of ophthalmology will face a surge in demand in the years to come.

Single-specialty hospitals are gaining momentum with the inception of hospitals focussing on a single branch of care.

Indian ophthalmic industry is expected to reach $1.8 billion with a CAGR of 6.8% from a market value of $1.3 billion in 2017.

Cataract surgery and diagnostic equipment followed by Glaucoma form the largest sub-markets in terms of revenue of the ophthalmic industry.

India is home to 30% of the world’s blind population, half of those are blind due to cataract.

Ophthalmic surgeons in India perform 7.1 million cataract surgeries, making cataract the major source of revenue in the industry.

In India, surgeries (majorly cataract) form the bulk of the eyecare industry while consultation and diagnosis contribute only 20%. Majority of eyecare surgeries occur during the day and do not require overnight hospitalization.

TOP EYECARE CHAINS IN INDIA:

Dr. R.P.Centre for Ophthalmic Sciences A.I.I.M.S, New Delhi, 1967
Sankara Nethralaya, Chennai, 1986
Eye 7 Hospitals, Delhi, 1990
L V Prasad Eye Institute, Hyderabad, 1987
Shroff Eye Hospital, New Delhi, 1914
Center for Sight, New Delhi, 1996
Aravind Eye Hospital, Madurai, 1976
Dr. Agarwal’s Eye Hospital, Bangalore ,1957
Susrut Eye Foundation & Research Centre, Kolkata ,1998
Smt. Lilavati Mohanlal Shah Eye Hospital, Gujarat, 1978
Vasan eyecare hospital, 2002

AREA NORMS:

The size of a hospital depends upon the hospital bed requirement, which in turn is a function of the size of the population it serves. As per the Indian Public Health Standards (IPHS), 2012, the calculation of number of beds is based on‐

• annual rate of admission as 1 per 50 population

• average length of stay in a hospital as 5 days

Bed occupancy is determined by the population size of the city/ district and the annual rate of admission. A thorough evaluation of location, size of the land and cost, factor in this decision.
Minimum Land area requirement are as follows:

Up to 100 beds = 0.25 to 0.5 hectare
Up to 101 to 200 beds = 0.5 hectare to 1 hectare
500 beds and above = 6.5 hectare (4.5 hectare for hospital and 2 hectare for residential)

LICENCES TO SET UP A HOSPITAL:

Certificate of registration of hospital with the municipal authorities
IMC/SMC registration certificate (IMC Regulations, 2002)
Charges for consultation as well as other procedures/services (IMC Regulations 2002)
Regulations Building Permit and Licenses (From the Municipality)
No objection certificate from the Chief Fire Officer “License under Bio-Medical Management and Handling Rules, 1998.
No objection certificate under Pollution Control Act.
Narcotics and Psychotropic substances Act, 1985
Vehicle Registration Certificates (For all hospital vehicles.)
Atomic energy regulatory body approvals (For the structural facility of radiology dept, TLD badges, etc)
Boilers Act, 1923(If applicable)
License for the Blood Bank (To be displayed in the Blood Bank)
Transplantation of Human Organs Act 1994(If applicable)
PNDT Act, 1996 (PNDT stands for Prenatal diagnostics test. To be displayed in the Radiology department that this is followed. )
Drugs & Cosmetics Act, 1940
Electricity Act, 1998
ESI Act, 1948 (For contract employees)
Environment Protection Act, 1986
Fatal Accidents Act 1855
Guardians and Wards Act, 1890
Indian Nursing Council Act 1947 (Whether nurses are registered with NCI).
Minimum wages act, 1948 (For contract employees)
Protection of Human Rights Act, 1993
Registration of Births and Deaths Act, 1969
Urban Land Act, 1976
Right to Information Act 2005

(Licenses and legal requirements are subject to change in accordance with new government laws)

MODELS OF EYECARE:

Eyecare chains usually operate through a Hub and Spoke model. It facilitates greater connectivity and optimizes costs. In such a model there are 3 types of centers Primary, Secondary, and Tertiary

Primary centers operate in a rural or a small-town area and provide basic consultation and screening services
Secondary centers operate in similar regions but with more equipment and are equipped to perform minor surgeries like cataract
Tertiary centers (Hub) operate in Tier I cities with latest technology machines
Primary and secondary centers act as spokes or feeder to the main tertiary center/ hub
To set-up a tertiary center it costs a minimum of Rs.5-7 crore, though costs may vary depending on the location and area. Primary and secondary centers cost much less

Dr L.V.Prasad’s and Aravind eyecare’s models are most successful amongst the eyecare industry in the world.

1.Dr L.V Prasad’s Pyramid model:

LVPEI model is pyramid model ensuring a permanent presence via community outreach, door-to-door screening, and even complex corneal surgeries.

Patient satisfaction forms the base of their model.

They practice an equitable distribution of services between paying and non-paying patients

Standardization of protocols and staff-training has played a significant role in maintaining efficiency and quality of services

2.Aravind eyecare model:

In this model, three major principles were implemented

Patient-centered care: A patient’s need should precede all. All the hospital’s operations are evaluated, and improvements are made periodically
Quality treatment: Quality should not only be present in the clinical procedure but by the quality of experience of the patient.
Minimizing the time per procedure: with their assembly line approach, the number of procedures performed per day increased drastically

AECS implemented a cross-subsidization approach, wherein patients who cannot afford to pay, don’t pay and those who can, do so from a tariff plan.

3. Partnering with local eyecare centers:

Another way to increase the number of centers is to join hands with local eyecare centers. This would work in a franchise like approach.

Advantages of a single specialty eyecare center:

Eyecare settings have been modifying their single specialty hospitals into a day care model to optimize cost
It lowers the operating cost and capital investment
Increases efficiency of care provided
Faster payback period as compared to their tertiary counterparts
Higher volumes, ease of replication, operating efficiencies leading to EBITDA margins of 25%-30%+

Conclusion:

With efforts from government as well as the private players, the eyecare industry is predicted to have an encouraging future. New eyecare start-ups are saturating the rural market and getting excellent response. A promising future of eyecare industry coupled with strong economics has lured in many private equity investors.

If you need any support in Planning and Designing an eye-care center you can contact us: Hospaccx healthcare business consulting Pvt. Ltd on: info@hhbc.in