Aravind Eye Hospital Case Study: Growth, Development, and Impact

This case study examines the Aravind Eye Hospital, a leading eye care provider in India, and its remarkable journey from a small clinic to a large-scale hospital. The study analyzes the hospital's business model, highlighting its focus on providing affordable, high-quality eye care services to both the rich and the poor, and its mission to eliminate needless blindness. The case study explores the hospital's growth trajectory, including its expansion of services, adoption of advanced technologies, and effective operational strategies. It also discusses the implementation of the McDonaldization concept, emphasizing efficiency, predictability, and control. Furthermore, the study emphasizes the hospital's commitment to community outreach through eye camps and its efforts to raise awareness and provide free treatment to underserved populations. The analysis also covers the hospital's financial strategies, including its reliance on self-generated revenue and philanthropic contributions. Overall, the case study provides valuable insights into the Aravind Eye Hospital's success, its impact on global healthcare, and its innovative approach to providing accessible eye care services.

CASE STUDY ABOUT
ARAVIND EYE
HOSPITAL

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Aravind Eye Hospital is situated in Madurai, India and serve quality eye care services to
people across the globe. The essay will evaluate the growth and development of eye hospital 2 to
7 times with the help of Mcdonaldization concept. It will outline the procedure and strategy used
by hospital to enhance its growth and attain success with its ultimate dream which is focused on
eradicating needless blindness. Thus, the report will identify the efforts made by Eye hospital to
create awareness among poor people about free treatment facilities.
MAIN BODY
Aravind Eye Hospital has attained success since 1976 with its clear vision of “providing
similar eye care services to rich and poor alike” and mission “to restore vision of million people
worldwide.” Further, it is a private enterprise with no motive of profit maximisation but to
provide quality eye care services to billions of people. The hospital started from scratch where it
had only 20 beds and till 1992, it becomes the biggest eye care hospital with 1400 beds (The
Aravind Eye Hospital, Madurai, India: In Service for Sight, 2003). The health care centre
screened approximately 3.65 million eye patients and further performed cataract surgery of
335000 people and among them almost 70 percent of the services were free for the poorest
population of India. The hospital faced various challenges and issues to perform with efficiency
continuously in growing years like, the largest population of India almost like all poor people do
not have health insurance due to which the hospital funds their services. Initially, the firm was
not able to provide incentive because of the idea of promoting excellence and free services to
poor people of India. Last and the most important challenge for Aravind Hospital was lack of
planning skills in order to raise money to attain competitive advantage (Rangan, 2017). The key
elements which demonstrate the business model of given eye hospital include: economies of
scale, cross subsidies and vertical integration.
The goal of Aravind Eye Hospital changed year after years with its stability of operations
and resources like, in 1976 with 20 beds, its goals was to provide quality eye care services at
affordable prices. Further, in 1977 its beds raised to 30 beds then it formulated its goal which
was to accommodate service users after surgery. In 1978, the beds raised up-to 70 and then the
hospital enhanced its goal and it is to provide poor service users free eye care treatment and till
1981, the Hospital grew as the biggest eye hospital with 250 beds in 80000 sq. feet space with 4
major operation theatre. Further, in this Aravind hospital enhanced 4 specialist clinics which are
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Cornea Glaucoma, Squint Corrections, Diabetic Retinopathy and Pediatric Ophthalmology.
Apart from this, the effective growth and success of Hospital is assisted by the Mcdonaldization
concept which comprise calculability, predictability, control and efficiency. The ultimate
inspiration behind the hospital and its concept was Mahatma Gandhi and Swami which promoted
the ides of serving humanity and God. In accordance, it is the slow and gradual process where
attaining success takes time but is not impossible (Mair and Marti, 2016). Doctor V. who is
founder of Aravind Eye Hospitals took training from United States of America and focused on
providing the best possible services to all people without any discrimination. Till 1992, the
services of hospital grew effectively where there were 240 employees as total staff among them
120 were nurses, 30 doctors, 30 housekeeping and casual maintenance workers and 60
administrative personnel. The business plan of Doctor V. succeeded with his effective idea of
serving appropriate services where nurses and doctor in hospital are divided work in rotation and
shifts in order to serve satisfactory and careful services to service users (Sharma and Kakoti,
2012). Further, the management ensured that the paying and no paying both types of patients in
Hospital gets same level of eye care services without any discrimination. Apparently, the staff is
provided adequate training to assist patent and doctors at the time of surgery and after surgery
which is the major reason behind the increasing efficiency in the services of Eye care hospital
(Haripriya, Chang and Ravindran, 2016.).
On the other hand, the hospital and management is focused on serving eye care services
for all the people in India and for this almost half staff of Hospital is sourced to eye care camps
to rural and backwards areas of country. The camps are organised with every possible eye
screening technologies and mobilised resources. These camps of the hospital are sponsored by
local successful business man and the camps are organized at local schools, colleges, etc. The
team of Aravind hospital is trained to provide effective and satisfactory eye screening services at
camps and further the selected service users who needed the urgent help were provided travel
services till hospital for urgent Surgery (Chaudhary and et.al., 2012). Thus, after proper clinical
treatment, the patient was sent to home by providing careful and appropriate travel services and
after 3 months again the staff of the hospital visit to evaluate the recovery of patients. The
management for the organisation is so focused that the individuals also organise regular follow
up camps to keep a check over the poor population and their recovery (Haripriya, Chang and
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Shekhar, 2012). Thus, the patients who get selected in camp screening are being provided free
eye care surgery and treatment for their life.
According to data, it has been determined that initially Aravind Eye Hospital 1976, seek
for donation from various people and sources. Many of close friends and family assisted Doctor
Venkataswamy in his plan. Further, he mortgaged his house as he required adequate money to
start off his plan. He started the hospital from ground floor and from the revenue generated from
initially started services, the management built next floor till they grabbed 5 stories building for
their eye care hospital. It has been determined that approximately 90 percent of annual budget of
the organisation is self-generated and 10 percent is funded by committees like, SEVA foundation
(USA) and Royal Commonwealth Society (UK) and lastly with the help of all sources, the
hospital attained success and ended up with its free eye care services (The Aravind Eye Hospital,
Madurai, India: In Service for Sight, 2003). Hence, with the success and accomplishment of
goals and objectives the hospital continuously focused on enhancing its services by updating
equipment and eye care technologies to establish effectiveness in services and make staff
handling easy (Natchiar, Robin and Krishnaswamy, 2014).
The continuous improving efforts from 1976 to 2017 from formal eye care services to
adaption of advanced technologies denotes the efforts of management in boosting the efficiency
2 to 7 times with the help of Mcdonadlization concept (Nirmalan and et.al., 2014). The hospital
is focused on regular motivation and training of staff members which is the reason behind the
effectiveness in the eye care services if an organisation. The firm organises more than 1500 eye
camps every year and the camps organised by the hospital are based on the evaluation of
population of blind people. Further, the eye camps the free treatment services of Aravind Eye
Hospital are sponsored by local NGO's, Rotary, Lions clubs and by domestic successful
businessmen. Moreover, to make people aware about the eye care services the management
promotes the advertisement with the help of pamphlets, posters, and with the help of
announcement in rural and backwards areas of society (MSc, Prajna and Frick 2014).
Henceforth, the boosting efficiency of eye care hospital is demonstrated by its highly
qualified staff and their efficient surgeries where the pricing structure of the hospital is
formulated to maintain a balance of 50 percent profit margin. In addition, the earned profits from
few treatments and surgeries are reinvested by the management for growth and development of
Eye care services. Apart from this, the efficiency of the services has been increased by 2 to 7
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times because of its quality of services to both rich and poor people without any discrimination.
In contrast, the management of Aravind Eye Hospital does not differentiate between the paid and
unpaid service users instead the quality and facilities for all the patients are equal (Nirmalan and
et.al., 2013). The staff is qualified and regularly get trained to treat patient like a god by
performing their job function effectively.
CONCLUSION
The essay summarised the case study on Aravind Eye Care Hospital which is situated in
Madurai, India. The essay denoted that hospital started from scratch where it had limited
resources like only 20 beds and till 1992 it became the biggest eye care hospital with 1400 beds.
Beside this, the effective growth and success of the hospital is assisted by the Mcdonaldization
concept which comprise calculability, predictability, control and efficiency. Further, the essay
outlined that for delivering effective and free eye care, the management organises almost 1500
eye camps per year in rural and backward areas of country. Thus, it is concluded by stating that
cited eye care hospital do not discriminate between the paid and unpaid service users instead the
quality and facilities for all the patients are equal.
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REFERENCES
Books and Journals
Chaudhary and et.al., 2012. Right to sight: a management case study on Aravind eye hospitals.
International Journal of Multidisciplinary Research. 2(1). pp.447-457.
Haripriya, A., Chang, D.F. and Ravindran, R.D., 2016. Efficacy of intracameral moxifloxacin
endophthalmitis prophylaxis at Aravind Eye Hospital. Ophthalmology. 123(2). pp.302-
308.
Haripriya, A., Chang, D.F. and Shekhar, M., 2012. Complication rates of phacoemulsification
and manual small-incision cataract surgery at Aravind Eye Hospital. Journal of
Cataract & Refractive Surgery. 38(8). pp.1360-1369.
Mair, J. and Marti, I., 2016. Social entrepreneurship research: A source of explanation,
prediction, and delight. Journal of world business. 41(1). pp.36-44.
MSc, R.M.M., Prajna, V. and Frick, K., 2014. Economic cost of cataract surgery procedures in
an established eye care centre in Southern India. Ophthalmic Epidemiology. 11(5).
pp.369-380.
Natchiar, G., Robin, A.L. and Krishnaswamy, S., 2014. Attacking the backlog of India's curable
blind: the Aravind Eye Hospital model. Archives of Ophthalmology. 112(7). pp.987-
993.
Nirmalan, P.K. and et.al., 2013. Lens opacities in a rural population of southern India: the
Aravind Comprehensive Eye Study. Investigative ophthalmology & visual science.
44(11). pp.4639-4643.
Nirmalan, P.K. and et.al., 2014. Utilisation of eye care services in rural south India: the Aravind
Comprehensive Eye Survey. British journal of ophthalmology. 88(10). pp.1237-1241.
Rangan, V.K., 2017. The Aravind eye hospital, Madurai, India: in service for sight. Harvard
Business School.
Sharma, P. and Kakoti, A., 2012. Aravind Eye Hospital. International Journal of Globalisation
and Small Business. 4(3-4). pp.334-341.
Online
The Aravind Eye Hospital, Madurai, India: In Service for Sight. 2003. [Online]. Available
through: <http://www.aravind.org/content/aravindmediapdffiles/journalcasestudies/
AravindEyeHospital_HBRCase.pdf>.
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