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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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