Anant Kumar CEO

Lowering Cost and Raising Access to Maternal Care in India

Contents

• What we do

• Why we do it

• How we do it

• Impact

• Road Ahead

What

• Growing chain of high quality, low cost maternity hospitals based in Hyderabad, India

• Joint venture between HLL Lifecare Ltd. and Acumen Fund.

• Offer an alternative to resource-constrained government hospitals and higher priced private hospitals.

We deliver

high-quality,

affordable core

maternal health

care to low-

income mothers

Our mission

Maternal Services Range

Conception Pre natal Delivery Post natal

* Consultation

* Basic Ultrasound

- Color Doppler

* Basic laboratory

* Pregnancy

termination

- IVF

- Surrogate

- Infertility

* Normal delivery

* Vaccum/forcep

* C-section

- Epidural

- High risk births

- Water births

- Maternity suite

* Immunization

- NICU

- Special needs

* Core maternal Services provided by LifeSpring

What makes our model unique

Sustainability

Scalability

Social Impact

• LifeSpring does not rely on outside grants • Each hospital is designed to be

operationally profitable in 2 years

• We deliver high quality maternal services• Our customers are low-income women

whose husbands mostly work in informal sector

• Plans to expand across India in next 5 years• Our standardized processes have been

designed with an eye towards scaling up.

Sustainability

Social Impact

What we offer our customers

Dignity

Affordability

Quality

• Prices - 1/2 to 1/3 the rates of other private hospitals.

• Transparency; our prices are all inclusive

• Births Sponsorship for poor customers.

• “Safety & Cleanliness • ISO-certified• Partnership with Institute for Healthcare

Improvement (IHI)

• Treated as a “customer” instead of a passive “recipient”

• Dedicated CRM department to collect and act on customer feedback

Why

Forefront among these gaps are quality of care, defined here as positive clinical outcomes as well as patients’ perception of doctor care

Gaps exist within the current options of maternal health providers

Poor maternal health outcomes in India can be explained by the following:

absenteeism of doctors/health providers

low levels of skills (among nursing and paramedical staff)

shortage of medicines

inadequate supervision/monitoring

callous attitudes of public health care providers

Sources: World Health Organization, 2005Government of India 2006a

Public hospitals are very under-resourced and offer poor quality of healthcare

Perception of quality increases in private hospitals, but this is still below 50%

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Public Private

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“How satisfied are you with doctor care?”

• http://graphics8.nytimes.com/images/2008/06/01/weekinreview/01seng.xlarge1.jpg

Sources: Time CNN Government of India 2006a

Affordability of health care a problem, especially for the poor

• Approximately 80% of healthcare expenditure in India is “out-of-pocket”• Especially impacts the poor, who have less disposable income• Studies show that health expenditure is the second biggest cause for indebtedness.

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Poorest 20% Richest 20%

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Less than 1 out of every 5 individuals from poorest quintile can finance

healthcare costs with savings…

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Poorest 20% Richest 20%

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…Leading to high levels of borrowing to finance health care. This especially

affects the poor

Source: International Programme, Centre for Health Economics, University of York, York, UK

Healthcare is not free in Govt. Hospitals too

Source: http://www.cbc.ca/health/story/2009/10/07/maternal-deaths-india.html#ixzz0j0lwA5MX

Indirectly, these gaps in quality and affordability play a role in the overall context of maternal mortality in India

“Seventy-five percent of maternal deaths [in India]

are preventable”“In Uttar Pradesh…only

about 1 in 100 government-run clinics where many

women deliver, have storage facilities for blood.”“In many smaller hospitals, even minor

complications often require transporting mothers more than 100 kilometers over bad

roads to larger hospitals.”

“A big part of the problem…was a lack of accountability…with government officials,

hospitals and health workers dodging responsibility for the problems that lead to such

high death rates.”

“…$1 to cut the umbilical cord and $1 for the delivery

room cleaner.”

Therefore, opportunity for an alternative to under-resourced public hospitals

How

REDUCE COST

• Specialized services

• Partnership

• Lease, not build

• Cluster

• Task-shifting

• High Throughput

• Drugs management

• No frills

IMPROVE QUALITY

• Expectations mapping

• Process driven

• Strong monitoring

• Leveraging IT

IMPROVE VOLUME• Leverage word of mouth

• Community Outreach

• Tracking Customers

DIGNITY & RESPECT• Customers NOT patients

• Privacy

• Exit interview

Low-Cost Service OfferingC

ost

Hig

hLaboratoryPharmacy

High risk births & NICUInfertility, IVFPainless delivery/EpiduralWater births/special requests

Low

Normal DeliveryOutpatient careBasic ultrasoundTermination of pregnancyImmunization

C-section

Low High

Service complexity

Affordable,

core maternal

health services

Impact

Difference that LifeSpring makes

LifeSpring is bringing down the cost of healthcare in the market by forcing other private players to remain competitive.

LifeSpring works as a catalyst to improve the quality of healthcare being provided by other providers in the market.

LifeSpring also brings out substantial saving to our customers, as they pay a much lower price for their healthcare than they would otherwise have been forced to pay.

We are reducing the burden on resource-constrained government hospitals.

The Road Ahead

Thank you