Pricing in private hospitals needs to be monitored: NIC chief

Source: The Hindu Business Line

Public sector insurer, National Insurance Company (NIC) on Wednesday made a strong pitch for monitoring pricing in private hospitals and a need for a regulator in this regard.

According to AV Girija Kumar, Chairman and Managing Director, NIC, there was a need to have a regulator who would monitor pricing in private hospitals and stop them from charging exorbitant rates.

“There is a need for monitoring pricing in private hospitals,” he told newspersons on the sidelines of an interactive session organised by the MCC Chamber of Commerce & Industry.

“Healthcare financing and delivery should be integrated and this will help the insured people immensely,” he added.

Global hospital chains, buyout PE funds eye majority stake in Vasan Healthcare

Source: Economic Times

 

Large private equity buyout funds along with a few global hospitals and daycare chains are in separate early stage discussions to buy a majority stake in Vasan Healthcare Pvt Ltd, India’s largest network of eye care hospitals, as its three existing financial investors revive plans for an exit.

The transaction may also see Vasan’s founder promoter selling out or paring his stake significantly, leading to a potential change of management control, said multiple people with knowledge of the matter…

A Mumbai-based domestic investment bank has already been roped in to facilitate the transaction, which could see valuations cross over $1 billion on the back of a huge demand-supply gap in a country where 80% of blindness is avoidable, as per World Health Organization data. In 2012, a WHO report stated that India has an estimated 12 million blind people and additional 456 million people who require vision correction.

In the recent past, the company had explored several fund-raising options such as an IPO and as recently as late last year, Vasan’s investors were in informal discussions with a few global players such as Parkway Holdings, Southeast Asia’s largest healthcare provider, its Malaysian parent Integrated Healthcare Holdings and a South African chain for a potential transaction, though nothing came of these. Now for the first time, a formal process is expected to start within the next few weeks.

Although the exact shareholding is still not clear, once converted on a fully diluted basis, the funds could own 45-51% in the company, with GIC having a lion’s share, said sources in the know. Healthcare entrepreneur AM Arun, who launched the first Vasan eye clinic unit in Trichy in 2002 and is currently chairman and managing director, owns the rest. Karti Chidambaram, son of former finance minister P Chidambaram, used to own a 5% stake in Vasan through one of his investment entities.  According to one of the investors in the company, he has ceased to hold a stake and resigned from the board in 2013.

Vasan’s Arun, GIC’s India spokesperson and VT Bharadwaj, MD of Sequoia Capital and a board member of Vasan, did not respond to email queries from ET till the time of going to press. Calls to Arun’s mobile were also unanswered. KP Balaraj, co-founder and MD, WestBridge Advisors Pvt. Ltd, and also a board member in Vasan, declined to comment.

Profitable growth

Chennai headquartered Vasan Healthcare, with roots in the pharmacy business since 1947, currently has more than 175 speciality eye care and 30 dental centres nationwide. However, the southern states still remain the most important market. It has also expanded its geographical footprint to Dubai and claims to be the largest such eye care chain around the world.

The company has also started growing inorganically. It bought Jothi Eye Care Centre in Puducherry, North Bengal Eye Centre in Siliguri (West Bengal), Shekar Nethralaya and Vijay Nethralaya in Bangalore and Grover Eye and ENT Hospital in Chandigarh.

In FY14, the company clocked Rs 750 revenue and Rs 180 crore ebitda while in the next fiscal it is aiming a Rs 350 crore ebitda on Rs 1,000-1,100 crore top line. The company is expecting a valuation of Rs 7,000 crore or 20 times FY15 ebitda, which most consider a significant premium.

“Within the single speciality healthcare segment, high quality scaled assets tend to trade around the mid teen range on a one-year forward ebitda basis. We have yet to see sustained interest from overseas strategic players in this segment and hence the audience for such large deals will remain limited for the time being,” said Shiraz Bugwadia, MD with investment bank o3 Capital, and a pharma and healthcare specialist.

Some however are not fully convinced. “The company is the largest player in its space without a doubt. But many would question its growth or numbers. Sometimes they don’t add up,” said a Bangalore based consultant.

Clear vision

The eye-care segment has seen the emergence of not-for-profit companies such as Aravind Eye Care and Sankara Nethralaya, which provide services at very little cost or free. These two companies have gained both size and critical mass along with a clutch of private companies such as Vasan, New Delhi Centre for Sight and Eye-Q, all of which are PE backed.

PE players have especially been lapping up investment opportunities in the local specialty healthcare delivery segments such as eye, dental and women and children with several small-sized transactions.

These asset-light business models, though still at a nascent stage in their evolution, offer investors an alternative to asset-heavy hospitals that tend to guzzle cash. The ebitda margins of such specialty chains like eye care tend to be at least 5-10% higher than other single-specialty and multispecialty players, feel some analysts.

Financial Management for Non Finance Management Teams in Healthcare Industry

About the Program

This program is exclusively designed for Healthcare Industry covering various verticals like  Hospitals, Diagnostic Centres, Nursing Homes, Medical Centres, OP Clinics, Wellness Centres etc.

Program Objective

The program is designed and intended for Non-Finance Management Teams in Healthcare spaceThe program provides a practical guide to analyze financial data and understanding the implications of financial performance of business and various nuances of financial management.

Objectives of the Program

  •  Understand the financial implications of their functional decisions and put them at ease when financial language/data passes by them.
  •  Be more informed participants in internal discussion especially when financial and cost related data is discussed.
  •  Read their own firm’s and competitor financial statements and to do a basic analysis of its financial strengths and weakness

Program Coverage

Understanding Financial Statements and the underlying Concepts

  • Balance sheet
    • Meaning
    • BS Structure
    • Assets
    • Liabilities
  • Profit and Loss Account (P&L)
    • Meaning
    • P&L Mechanism
    • Different levels of profit
    • Relationship between P&L and BS
    • Profit & cash flow
  • Cash Flow Statement (CFS)
    • Structure
    • Operating cash flows
    • Investing cash flows
    • Financing cash flows

Financial Statement Analysis

  • Financial ratio analysis
    • Ratios for assessing short term liquidity
    • Ratios for assessing long term financial strength
    • Ratios for assessing efficiency
    • Ratios for assessing performance
    • Performance drivers

 

  • Cash flow analysis

 

Working Capital (WC) Management

  • Concept of WC
  • The WC or operating cycle
  • Estimation of WC needs
  • Financing WC
  • Cash management
  • Credit management
  • Financial implications of Inventory management

 Cost-Volume-Profit (CVP) Analysis

  • Cost classification
  • Cost allocation – apportionment and absorption
  • Cost-volume-profit relationship
  • Break-even analysis and the significance of break-even point
  • Using CVP for decision-making
  •  “Operating Leverage” and its significance

Capital Investment Analysis

  • Basic framework – capital investment process
  • Time value of money
  • Methods of appraising capital investment
    • Accounting rate of return
    • Payback period
    • Net present value
    • Internal rate of return

Who can participate?

The following members from various verticals of the Healthcare industry can participate:

  • Promoters , Directors
  • Sr.Management Teams, Sr.Operational Teams, Sr.Marketing Teams
  • Administrators, Sr. HR Managers, Sr. Finance & Accounts Managers, Sr.QA Teams
  • Sr. IT Managers, Purchase & Stores Teams

Registration Fee Details 

Course Fee Rs.10,000/- plus 12.36% Service Tax per participant.

The cheque/DD to be drawn in favour of “Value Added Corporate Services P Ltd” payable at Chennai. Full payment in advance. Fees once paid will not be refunded. However changes in nomination before commencement of programme permitted.

Click here for registration forms - Registration_Form_Finance-for-NonFinance

Feedback given by Participants of Earlier Programs

Please click here for feedback given by participants who attended the previous sessions of the Program.

Program Schedule

Workshop will be held at  Hotel NKMS Grand, 6-3-563/31/1, Off Taj Deccan Road, Erramanzil, Somajiguda, Hyderabad – 500 082 on the 21st & 22nd of March 2014 spread over 2 full days (9.30 am to 5.30 pm).   Please click here for Google map to the Venue

Click Here for Google Maps Link

For More Details Contact:

D.Satishkumar
Sr.Manager –Business Development
satish@valueadded.in
(+919840842530)

Dr.B.Srivatsan
Sr.Manager – Operations
srivatsan@valueadded.in
(+919382204466)

Padma Sriramakrishnan
Manager – Customer Service
padma@valueadded.in
(+919940013518)

 

 

Delivering World-Class Health Care, Affordably

October 21, 2013 by · Leave a Comment
Filed under: Healthcare, Healthcare Innovation 

This article was originally posted here by Vijay Govindarajan and Ravi Ramamurti.

India might be the last place on earth where you’d expect to find health care innovation. Government programs have finally brought some infectious diseases under control, but the nation’s ability to meet the basic medical needs of its citizens remains abysmal. Despite robust economic growth over the past two decades, the infant mortality rate is three times higher than China’s and seven times greater than that of the U.S. Of the 2 million Indians in need of heart surgery, fewer than 5% get it. The majority of the country’s estimated 63 million diabetics and 2.5 million cancer sufferers haven’t been diagnosed, let alone treated. Seventy percent of India’s 12 million blind people could be cured by a simple surgery—if it were available to them. Read more

Funding Your Business Ideas

October 17, 2013 by · Leave a Comment
Filed under: Business Intelligence, Finance 

This article was originally posted by Meera Siva here

 Having customers endorse your product increases the odds of getting funded.

Say, you have a business idea and you believe it has great potential. But like yours, there are hundreds of ideas chasing funds.

“Success rate is low and currently only one in ten companies gets funded,” said Raju Venkataraman, Chairman of TiE, Chennai 2013, an entrepreneur network. So, how do you beat the odds and take your business idea to the next stage? Read more

Note on Workshop on “Finance for Non-Finance Professionals”

October 1, 2013 by · Leave a Comment
Filed under: Business Intelligence, Events, Finance 

Program on “Finance for Non-Finance Professionals”  in Healthcare Industry

A two day workshop on “Finance for Non-Finance Professionals” organized by Value Added Corporate Services P. Ltd jointly with GR Advisory on 19th & 20th of September 2013 at Chennai.

The program was designed and intended for Non-Finance Hospital & Healthcare Promoters, Directors, Managers to guide them to analyze financial data and understand the implications of financial performance of Hospital business for effective financial management in each department/area of the hospital.

Read more

How to Get Health Care Innovations to Take Off – HBR Blog

September 26, 2013 by · Leave a Comment
Filed under: Healthcare, Healthcare Innovation 

No matter how many creative solutions we drum up to improve quality of care and service in the U.S. health system, they won’t do much good if only a few clinicians and institutions know about them and apply them.

But how do you overcome obstacles to spreading innovation, like fear of change, resource constraints, and slow, consensus-based decision making? By connecting people so they can quickly and easily share insights, collaborate on prototypes, and draft off one another’s enthusiasm and momentum. As Atul Gawande put it in a recent New Yorker article, “Human interaction is the key force in overcoming resistance and speeding change.”

Read more

Workshop on Finance for Non-Finance Health Care Professionals

August 27, 2013 by · 1 Comment
Filed under: Announcements, Events, Finance 

(Joint Initiative Of Value Added And GR Advisory)

 19th & 20th  September 2013 [10 am to 6 pm]

Course Objective

The course is designed and intended for Non-Finance Managers / Executives. The course provides a practical guide to analyze financial data and understanding the implications of financial performance of business and various nuances of financial management.

Objectives of the Program
Understand the financial implications of their functional decisions and put them at ease when financial language/data passes by them.
Be more informed participants in internal discussion especially when financial and cost related data is discussed.

Read their own firm’s and competitor financial statements and to do a basic analysis of its financial strengths and weakness

Read more

SME Insights

December 13, 2012 by · Leave a Comment
Filed under: Finance, Healthcare, Manufacturing & Services 

Mr.R.Venkatakrishnan, Director of Value Added and a Senior Finance Professional has been writing several articles on SMEs over the last few years.

He has complied his articles, written over recent months on SMEs, and brought out the same as “SME Insights” in the form of an eBook…

Please click on the link below to read the eBook :

SME Insights

TiECON Chennai – December 3-4, 2012

TiECON Chennai

December 3-4, 2012

What started in Silicon Valley 16 years ago, is now in Chennai for the fifth successive year, suitably tailored to the challenges of entrepreneurs in India.

TiEcon Chennai represents a breathtaking array of networking and business opportunities along with energizing and thought provoking keynote speakers. What started in Silicon Valley 16 years ago, is now in Chennai for the second successive year, suitably tailored to the challenges of entrepreneurs in India. This all-day event has assembled a list of powerful speakers to deliver keynote addresses and participate in panel discussions covering exciting topics – all aimed at facilitating the creation of tomorrow’s entrepreneur.

Please visit TiEcon Chennai site : http://www.tiechennai.org

Tiecon Chennai 2012 : Registration Link

Program Schedule :

December 4, 2012

Session Speakers
Session Speakers
9.30 AM – 10.15 AM
Venue: Main Hall
Track: Business
“The Entrepreneur’s Journey” – Keynote Address
Keynote Speaker- Mr.  G.M. Rao, Chairman – GMR Group
10.15 AM – 11.00 AM
Venue: Main Hall
Track: Business
“Entrepreneurship – Marathon or Sprint?” – Debate Format
Moderator- Mr. Alpesh Patel, Co-Founder, UK
Panelist- Ms. Meena Ganesh, Promoter, Tutor Vista,
Panelist- Mr. Ajay Bagga, Head, Private Wealth management, Deutsche Bank
Panelist- Mr. Murugavel Janakiraman, Founder, Bharat Matrimony
Panelist- Mr. Anil Nair, MD&CEO, Law& Kenneth
11.00 AM – 11.45 AM
Venue: Main Hall
Track: Business
“Kick Start- Powering from Zero” – Panel Discussion
Moderator- Mr. S. Premkumar, Group CEO, Apollo Hospitals
Panelist- Mr. Girish Mathrubootham, Founder &CEO, Fresh Desk
Panelist- Mr. C R Chandrasekar, CEO, Funds India
Panelist- Mr. Karunanidhi Muthu, Director, DCH Capital, NZ
11.45 AM – 12.00 PM
Venue: Foyer
Track: Coffee Break
12.00 PM – 12.45 PM
Venue: Main Hall
Track: Business
“Powering the Next Step”- Fireside Chat
Keynote Speaker- Mr. Sadhguru Jaggi Vasudev, Founder Isha Foundation
Facilitator- Mr. Subroto Bagchi, Co-Founder& Chairman, MindTree Ltd
12.45 PM – 1.00 PM
Venue: Main Hall
Track: Business
” Enterprise 044″ Directory Release
1.00 PM – 2.00 PM
Venue: Foyer
Track: Lunch
2.00 PM – 2.45 PM
Venue: Main Hall
Track: Business
“Kashtamaana Customer’- Panel Discussion in Tamil
Moderator- Mr. S. Ve. Shekar, Dramatist & Ex – MLA
Panelist- Mr. Muruganantham, Social Entrepreneur
Panelist- Mrs. Chitra Ravi, Founder CEO, EZ Vidya
Panelist- Mr. AMSG Jayakannan, MD, Arasan Match Industries
2.45 PM – 3.30 PM
Venue: Main Hall
Track: Business
” Stretching for Growth”- Panel Discussion
Moderator- Mr. Raghavendra Rao, CMD, Orchid Pharma
Panelist- Mr. K Ganesh, Founder, Tutor Vista
Panelist- Mr. Mehmood Khan, Social Entrepreneur
Panelist- Mr. G V Ravishnakar, MD, Sequoia Capital
3.30 PM – 3.45 PM
Venue: Foyer
Track: Tea Break
3.45 PM – 4.30 PM
Venue: Main Hall
Track: Business
“Fitness Finale – The Entrepreneurial Muscles” – Panel Discussion
Moderator- Mr. Geet Sethi, Director, Olympic Gold Quest
Panelist- Mr. Prakash Padukone, Director, OGQ
Panelist- Mr. Robin Singh, Former Test Cricketer
Panelist- Mr. Rohini Rau, India’s No:1 Women Sailor
4.30 PM – 5.30 PM
Venue: Main Hall
Track: Business
“On the Wings of Angels” – Panel Discussion
Moderator- Mr. Gopal Srinivasan, CMD, TVS Capital Funds Ltd.
Panelist- Mr. Paul Singh, Partner, 500 Startups
Panelist- Mr. Rajesh Sawhney, Founder, GSF Accelerator & Superangels
Panelist- Mr. Rehan Yar Khan, Angel Investor, Indian Angel Network
Panelist- Mr. Karthik Reddy, Managing Partner, Blume Ventures
Panelist- Mr. Suresh kalpathi, Angel Investor, Chennai Angels
5.30 PM – 7.30 PM
Venue: Foyer
Track: Business
Hi- Tea Networking Session
Expert Corner- Mr. Dorai Thodla, Charter member, TiE Chennai
Test your pitch corner- Mr. Dorai Thodla, Charter member, TiE Chennai
Unconference Corner- Mr. Siddharth G, Member, TiE Chennai
“IDHA ADHA” Debate Corner- Mr. Pravin Sekhar, Charter member, TiE Chennai

 

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