While the rest of the Western World have escalating health care costs, MDs and pharmas in India have strived to keep health care cost down. An eye operation in Aravind Hospitalcan cost as little as $5.00 which includes the lens. They now have their own lens manufacturing facility. The vision of Dr V was to make Aravind hospital the McDonald of cataract surgery. They have done millions of cataract surgery. In the PHL, there is moderate cost of cataract operation. But it can even be brought down as Dr. Carlos Naval of Galileo Surgicenter has proposed. In his hospital, the goal is to give operating hours to residents who would like to be eye specialists. Thus if you are in the list of those who get budget operations, you cant choose the doctor who will operate on you.
Costs can be brought down, as Dr. Shetty and Dr V have suggested by using the principles of mass production and economies of scale. All items cost in the health care system can be brought down: linen, gloves, needles, medicines, and staff. Thus, as was proposed even by Dr. Naval, their OR nurse was the Centers optometrist. She does record keeping and hands instruments. This solves the problems of migratory nurses (partly solved due to the over supply of nurses now) Dr. V/Aravind hospital trains high schools graduates to be the centers/hospital nurses. They cost less.
Dr. Devi Shetty on the other hand can have open heart surgery/bypass for as little as $1,500 (vs $25,000 in MM hospitals in the PHL and in Davao, PHL, it can be 1/5 of the MM costs). Health care costs in US are staggering. The same procedure can cost over $100,00 - from Health Impact News
From Dr. Joseph Mercola
Some solutions are:
1. Cross subsidy;
2. Fixed salary for a certain number of operations for the MD, 100% fees beyond a target;
3. Caps on procedures;
4. Political will. Health care is not pure business, but a social issue.
5. Taxing the doctors.
6. Re molding the mindset of MDs. MDs want to be MDs now, not for service for profit and good life: MB, BMW, Audi, travel abroad, condos etc.
Aravind Hospital
Dr Carlos Naval (was an MBAH student at a GSB)
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