Friday, June 21, 2013

A national chain of branded IVF clinics in India


The inefficiencies in the Indian health sector are increasingly attracting venture capitalists (VCs) to invest in this space IVF in particular looks very attractive and many VCs have put their money in it. However, with most of those investments modeled in the form of a national IVF chains, most investors have had to close their chains because of the failure of their management and operations structure.

The problem is that most VCs have taken advantage of the comparatively lower cost of setting up an IVF clinic to set up a large chain of clinics without putting in place a well-defined mechanism to manage their operations in such a way that they are efficient and synchronized. An IVF chain is bound to fail if the success rates of pregnancies in individual clinics have wide variations and if they lack a single head doctor to play a policing role in monitoring the operations of the chains to ensure they are streamlined.

The failure of some of the branches of these IVF clinics to help patients achieve pregnancy is likely to damage their reputation. Patients will feel cheated and will write negative reviews online about their experience in these IVF clinics. Moreover, an IVF chain is bound to collapse if it lacks dedicated IVF specialists whose sole responsibility is to handle IVF patients as opposed to handling all manner of gynecological cases such as endoscopy and hysterectomy in attempting to maximize their income.
 
Very  busy clinics will try to improve their profitability by treating as many patients as possible. However, once they cross  the optimal level of 1000 cycles per year , they will fail to offer personalized patient care. They are likely to experience a huge numbers of patient complaints and therefore lose their patients to their competitors. 

At Malpani Infertility Clinic, as a refreshing contrast,  we offer  very hands on personalised care to our patients.  We are a boutique clinic, which pampers its patients !

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