CK Prahalad believed that the Devi Shetty model held immense promise from the very beginning
Renowned management thinker CK Prahalad has been watching Devi Shetty for the last six years now. Back then Narayana Hrudyalaya was still a relatively small facility. But even then Prahalad believed that the model held immense promise. “My job has always been to look at models that are different, models that are scalable. And it was clear to me, even at that time, while talking to him that this model is going to grow and he is going to be able to execute it because he is not only a very good visionary on what the world can be, but he is extremely good at making it happen,” says Prahalad. In 2004, Prahalad wrote about Shetty’s unique hospital model in his bestseller The Fortune at the Bottom of the Pyramid. In a free-wheeling interview, Prahalad explains why Devi Shetty’s model of healthcare stands out as unique. Excerpts:
Q. You have been an observer of Narayana Hrudyalaya for a long time now. What do you think makes this model unique?
I think there are 3-4 distinct features that define Devi Shetty’s ability to create something fundamentally different. One, I think he has a point of view on how to create world-class healthcare facilities for the poorest people of the world. Therefore, his entire healthcare model is based on reducing cost without sacrificing world-class quality. Essentially, the mortality rate in Narayana Hrudyalaya is much lower than in New York State for similar kinds of heart disease. So the first principle is having a deep conviction that you have to bring world-class (quality) at affordable prices to the poorest people in the world so that you get for the first time, the ability to provide world-class (healthcare). I think that’s the motivating principle. The second thing I think is the willingness to implement entirely different work processes. For example, somebody reading the echocardiogram (in Narayana Hrudyalaya) is someone who has just done high-school graduation or who has done just the first year of college.
Q. In the years that you have known him have you seen him change his model, tweak it?
I think what has changed in the last six years is his desire to scale his model rapidly. Also, Yeshasvini which is the insurance part, which is a way of making sure that people can afford healthcare.