Strategy Management: Piramal E-Swasthya: Attempting Big Changes For Small Places - in India and Beyond

Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 4

Strategy Management Case-1

Piramal e-Swasthya: Attempting Big


Changes for Small Places – in India and
Beyond

Anand Piramal and his team sought to "democratize healthcare" in India through the
development of a new service delivery model. If Henry Ford could build and deliver cars
to everyone in the United States, Piramal thought, then why can't India deliver
healthcare to the 70% of its citizens who lack access to it? They began pilots in 2008 but
soon ran into unexpected difficulties. After a second round of pilots in early 2010, they
had to decide whether to proceed and if so how.

Presented by: Group 8

Alok Kumar -MP18002

Anurupa Samaiyar-MP18007

Manish Singh -MP18020

Md Azim Ashraf -MP18023

Sanjeet Kumar -MP18036

1|Page
Strategy Management Case-1

1. PROBLEM ANALYSIS
1. A: Problem Definition: The Piramal e-Swasthya revenue has gone down as they are not

getting enough patients per village to make the service Sustainable, Profitable and Scalable.

1. B: Diagnosis:

The current model employs educated females known as Piramal Swasthya Sahayikas (PSS) to carry out

the daily operations and also to attract the local customer (patients) in their village. Earlier the model

was predicted sustainable if each PSS could serve seven patients per day. But as the demand decreased

it was then reduced to 3 patients per day. But even this target was not achieved as each PSS on an

average received less than one patient per day. By 2010 they had lost 26 villages out of original 40

villages and were able to add only 60 more villages. Although the initial survey done by Anand Piramal

and his team suggested that good number people/villages showed openness to service (receive care over

the phone) the model was not generating enough revenue at a cost of $500,000 per year.

There were many reasons for the above-mentioned outcomes.

I. The patients were referred to other hospitals like public health care and private

clinic in case of illness was more serious. Piramal e-Swasthya would refer one tenth

of the patients to other providers which annoyed some of the patients. The negative

word of mouth publicity by patients and government providers stopped others from

visiting Piramal. And the public health practitioners would delay the service and

make them wait longer if they were referred to by the Piramal e-Swasthya.

II. The satisfaction level among the customers was decreasing as the patients were not

getting immediate results as compared to the service of quacks who offered steroids

which provided immediate results, though compromising on long term. The quacks

were opinion leaders and had political influence. The patients were happy to see

2|Page
Strategy Management Case-1
immediate benefits. The quacks also threatened the villagers to not visit the Piramal

e-Swasthya. Besides this, the quacks also offered flexibility in payments. Patients

could pay later and even barter for the service.

III. The PSS were young women with low status and were part of a conservative

society and many limitations were imposed on them. Hence, they proved inefficient

as they interacted only with small community and demand for the PES services

decreased. The PSS were lacking in the right motivation for this job because many

of them became PSS just to increase their social status.

Solutions

 Better communication

 Partnership with public health doctors-Educate Quacks about harmfulness effects

of steroids

 Choose the sahayika from the family of the sarpanch, which will be more influential

 Improved incentive structure-Make Pes ambassadors, earn discount on referrals or

commission per patients

 Tie up with anganwadi’s

 Spread success stories among the people

 Education about steroids and long run consequences of its uses which cure the

symptoms and not the root cause

 The business model was not economically sustainable

 Spread awareness that PES is not meant to be a one-stop solution for all types of

illnesses and it is beneficial to have PES in the villages

 Positioning – that it is not a one-stop solution – POP -

 Home Visits and Health Camps will increase awareness among villagers.

3|Page
Strategy Management Case-1
 SMS program for dosage and reminders and monthly disease themes (HV and HC)

 Enlarge the stakeholders and Educate market (Training village leaders)

 Enlarge the scope and add services like water purification tablets.

 Alter the model from village to village to meet the ground reality

4|Page

You might also like