Alternative Care

"Currently Dr. Shetty is in the process of planning the building of a 2,000 bed hospital in the Cayman Islands in the Caribbean an hour's flight from Miami, Florida, where he will offer medical services for 50% or less than they cost in the U.S."

Hubpages

How does he do it?

  • Economies of Scale which allow his company to make up in number of served what he loses from lowering prices as well as the ability to spread his fixed costs over a larger amount of output.
  • Specialization which allows his surgeons to concentrate on one or two types of surgery and become very good at it.
  • Managing costs which involves keeping all costs under control.

While the President and his hard left allies in Congress struggle to get rid of our present, less than perfect health care payment system, and replace the entire United States health care system by forcing a failed European socialist model on the nation, Indian Dr. Devi Shetty and his Narayana Hrudayalaya Private Ltd hospital company is using the free market system to deliver low cost, high quality care.

According to an article in the November 21-22, 2009 Weekend Edition of the Wall Street Journal, entitled The Henry Ford of Heart Surgery, on page A1, Dr. Shetty's hospital charges U.S. $2,000 for the same open heart surgery that costs $20,000 to $100,000 in a U.S. hospital.

This is low cost, not low quality, as evidenced by the fact that the death rate for patients who die within 30 days of the surgery in his hospital is 1.4% compared to a rate of 1.9% in U.S. hospitals.

Not only are Dr. Shetty's fees and death rates lower than comparable surgeries in U.S. hospitals but he actually makes a higher profit than U.S. hospitals.

His Narayana Hrudayalaya Private Ltd hospital showis an after tax profit of 7.7% versus an average after tax profit for U.S. hospitals of 6.9%.

HT: Bill J

 

Published Tuesday, November 24, 2009 6:07 PM by Right-Mind

Comments

# re: Alternative Care

"Wal-Mart-ization." I love it!

Tuesday, November 24, 2009 9:04 PM by GregD