Abstract:

The Government of National Capital Territory of Delhi (GNCTD) decided to set up an autonomous super speciality hospital in liver and biliary diseases and it took shape in the Institute of Liver & Biliary Sciences (ILBS) which was formally inaugurated in January 2010. Dr Shiv Kumar Sarin , a renowned gastroenterologist took over as its founder Director. The ILBS had a unique business model for a government hospital to deliver quality health care without much dependence on the public finance. It would receive recurring grant from GNCTD to the extent of excess of total expenditure over its income generated, and non-recurring grants for capital assets. The model envisaged a strategy of attracting paying patients by virtue of its reputation for high quality patient care, yet significantly less than other corporate hospitals. The business model envisaged revenue sharing with doctors and staff. All personnel were on contractual appointments for four years which was extendable based on satisfactory performance. There was no automatic promotion to the next level and an in-house candidate had to compete with others who apply for the position. It was based on the philosophy that ‘ pay the man his worth’. It was different from other government hospitals which were funded totally by Government and did not plough back in the system, jobs were permanent, and promotion in the hierarch based on number of years. Dr Sarin was pondering whether ILBS with its existing business model could meet the need of the future. To keep updated with new technologies, the hospital has to replace old equipment and machines with state of art machines which would be prohibitively costly in future. When the global COVID-19 pandemic hit India in early 2020, it was time for ILBS to test its core capabilities and infrastructure built to lead the COVID-19 fight while continuing its specialist hospital services.

Learning Objectives

After working through the case and suggested discussion questions, students will be able to discuss :
• Status of public health care, particularly in tertiary sector.
• Strengths, weaknesses, opportunities and threats (SWOT) of ILBS..
• Business strategy and business model of ILBS.
• Value proposition of ILBS to its consumers, and provider of services