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Aurolab-Aravind: integrating resources to serve more people

The integrated model is exemplified by the eye surgery project being carried out by AutoLab (a manufacturing company for affordable high quality lenses) and the Aravind Eye Hospital (which combines a free service for the very poor with a pay service for the better-off). The aim is to treat as many cataract patients as possible, meeting the high demand in India, but at the lowest possible price.

Led by David Green, this example of "compassionate capitalism" has succeeded, in just a few years, in delivering annual eye examinations to two million patients and 220,000 sight-restoring operations. Although 47% of patients are too poor to pay anything, this innovative health service model earns a 60% profit margin that enables rapid capacity build-up and replication in other countries.

For Christian Seelos, the Aravind-AuroLab case is a clear illustration of value innovation at the edges of existing markets. On the one hand, Aravind has reduced the usual costs of this type of service (bypassing health sector pressure groups, doing away with marketing actions, and tightening up on cost items such as personnel or length of hospital stay). On the other, it has succeeded in differentiating itself from the competition by improving quality of service (capacity, speed and reputation) and, above all, by creating new values associated with Indian health care (surgery for all, a model of governability, and ophthalmological research centers).

 
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