In short
Why Indian doctors leave (brain drain) and how to make healthcare affordable and well-governed; includes comparisons to Australia, critiques of referral and defensive medicine, and business lessons for running hospitals.
Guest backgrounds
Dr. B. Bhaskar Rao, cardiothoracic/heart surgeon; founder of KIMS Hospitals (large Indian healthcare group). Trained in Australia (3 years, starting 1985 era) and performed “30,000 heart surgeries.” Also helped set up Afghanistan’s first state-of-the-art diagnostic centre in Kabul.
Key claims
High treatment costs push patients below poverty after paying bills (example: lung transplant ~60 lakhs to 3 crores; kidney 8–10 lakhs; liver 35–40 lakhs). India lacks systematic referral (cardiac patients can directly go to big hospitals, wasting money). Doctor-led hospitals can be better than corporate-run ones when aligned with patient affordability and clinical governance. India has lost ~75,000 good doctors to abroad. Brain drain is driven by better lifestyle, education, and structured systems abroad; some doctors return only with strong loyalty.
Notable examples
Village RMP doctor respected with long queues; Dr. Rao’s “cost-to-cost” heart surgery model using government relief funds (CM/PM funds) and building hospitals in hometown and Rajamandri; adoption of Ayushman Bharat-like schemes; focused ultrasound tremor treatment (5 minutes) and other non-surgical ablation technologies.
Written by AI. May contain mistakes. Listen to the episode to check what was said.
Chapters
Tap a time to open that second in VOThe Financial Burden of Healthcare in India
0:00 to 1:00
Explore the high costs of medical procedures and their impact on patients.
“Any patient before coming to hospital, if they are above poverty line, 40 % of the people by paying the hospital bills, they become below poverty line.”
Comparative Healthcare Systems: India vs Australia
1:00 to 2:00
Understand the differences in healthcare referral systems between India and Australia.
“As of today, whatever technology that is available in America, it's available in India.”
Opportunities in Indian Healthcare
2:00 to 3:30
Learn about the prerequisites for establishing a healthcare facility in India.
“He has performed 30 ,000 heart surgeries in his career.”
Doctors Leaving for Better Opportunities
3:30 to 5:00
Discuss the brain drain of Indian doctors and the reasons behind it.
“them and see that how much we can able to take out from his talk whether we can able to really do something.”
The Journey of a Heart Surgeon
6:15 to 7:45
Hear Dr. Bhaskar's personal journey and motivations behind his career.
“All these days she has been handicapped.”
Building Affordable Healthcare
7:45 to 10:00
Learn how Dr. Bhaskar made heart surgeries affordable for middle-class families.
“Even though I become a consultant, I'm doing good work and also making good amount of money.”
Stakeholders in Healthcare Success
10:00 to 12:00
Understand the key stakeholders and their expectations for successful healthcare.
“and get a good reputation and satisfaction.”
Establishing Trust Hospitals
12:00 to 14:00
Discover the challenges and successes of building trust hospitals in India.
“And I used to bring all these poor people, apply these things and then do the surgery.”
Building Successful Hospitals in Andhra Pradesh
14:01 to 18:03
Learn about the journey of building successful hospitals and the challenges faced.
“So with the success story has been built a lot more of my credentials with my colleagues and team.”
The Importance of Loss Funding for Healthcare
18:04 to 22:24
Understand the concept of loss funding and its critical role in hospital sustainability.
“and then we call the private equity people then the private equity people came and invested about 60 crores then with that this has been how much revenue you were doing when they invested 60 crores?”
Show all 36 chapters
Collaboration with Government for Healthcare Solutions
22:25 to 26:02
Discover how partnerships with government can enhance healthcare access and execution.
“they should be able to understand the business.”
Navigating Challenges in Public Health Initiatives
26:03 to 28:00
Explore the complexities and challenges of implementing public health initiatives.
“The most challenging is when we are doing cost to cost.”
Challenges in Corporate Hospitals
28:00 to 30:00
Explore the challenges corporate hospitals face due to rising patient numbers and costs.
“It becomes 3 ,000 diseases in five to six years.”
Healthcare Accessibility and Affordability
30:00 to 32:00
Discusses the evolution of healthcare costs and initiatives aimed at making healthcare more accessible.
“Maximum about 25-30 lakhs per bed cost including equipment, infrastructure and all.”
Investing in Health Insurance
32:00 to 34:00
Emphasizes the importance of viewing health insurance as an investment rather than an expense.
“The moment when they take this as a premium is an investment everybody can be affordable.”
Changing Dynamics in Doctor-Patient Relationships
34:00 to 36:40
Analyzes how the doctor-patient relationship has transformed from respect to commercialism.
“If you also take, everybody will have some, whoever is drinking, one bottle of beer in a week.”
Comparing Indian and Australian Healthcare Systems
36:40 to 39:40
Explores the differences between healthcare systems in India and Australia, focusing on infrastructure and protocols.
“between the patient and doctor the relationship is totally changed when compared to that village to this corporate what has changed?”
Advancements in Medical Technology
39:40 to 42:00
Highlights new medical technologies available in India, such as focused ultrasound treatments.
“That's where you can also cut down lot of cost.”
Understanding Tremors and Prostate Health
42:00 to 43:38
Learn about the causes of tremors and the rising incidence of prostate issues among young men.
“And especially these people, if you want to do any surgery, you can't do some 70 years, 75 years.”
The Brain Drain of Indian Doctors
43:38 to 45:28
Discussing the factors leading to Indian doctors emigrating for better opportunities abroad.
“See basically what's happening today two to three decades back what you said was correct.”
Quality of Life Comparisons for Doctors
45:28 to 47:58
Exploring the lifestyle and quality of life differences for doctors working abroad versus in India.
“because as you mentioned that they are making good amount of money and all those things they never used to come back unless somebody who is having a real loyalty to the country and they want to come back and do service.”
Entrepreneurship in Healthcare
47:58 to 49:43
Examining the reluctance of doctors in India to pursue entrepreneurship despite potential opportunities.
“money than the reason is they are all the governance legally everything they will have compulsory health insurance.”
Assessing Hospital Acquisition Opportunities
49:43 to 52:29
Outlining the factors to consider when acquiring a hospital, including opportunity and market needs.
“Those who come with money, they are not successful politicians.”
Evaluating Healthcare Needs and Management
52:29 to 56:00
Understanding the key factors in assessing healthcare needs and the importance of proper management.
“because another still 800 beds is required there.”
The Experience of Surgery: Quantity vs Quality
56:00 to 57:15
Explore how the number of surgeries performed impacts a surgeon's ability to handle complications.
“So that unless we don't have the proper management and all those things it's a very difficult thing.”
Dynamic Nature of Surgery and Technology Adoption
57:15 to 59:39
Understand the importance of adaptability in surgery and the role of new technologies.
“But whenever we have seen this 30 ,000 journey, if there is a complex surgery, if I have done about 100 complexes, I can be able to identify, okay, I would have done here, this way, can be able to help.”
Healthcare Costs and Patient Expectations
59:39 to 1:01:05
Discuss the challenges of healthcare costs in India and what patients expect from services.
Transplant Costs and Healthcare Accessibility
1:01:05 to 1:03:08
Learn about the high costs associated with transplants and the implications for patients.
“So what happens when you are maintaining an artificial heart and artificial lung, the entire body immunity system will differ.”
Insurance Coverage and Organ Transplants
1:03:08 to 1:05:26
Explore how insurance impacts the affordability of organ transplants in India.
“To recover also, it will take longer time.”
Building a Sustainable Healthcare Model
1:05:26 to 1:07:19
Discover how a multi-specialty hospital can provide quality care and retain doctors.
“The golden hour will not be able to be minimized.”
Innovations in Healthcare: AI and Patient Communication
1:07:19 to 1:10:00
Learn about innovative healthcare solutions that improve patient communication and outcomes.
“as an entrepreneur I want to know that is in your entire journey I think in 25 years of running you have been able to retain 98 % of your doctors.”
Innovations in Organ Transport
1:10:00 to 1:11:40
Learn about advancements in organ transport and preservation for transplants.
“If it is costing more than 4 to 5 hours the patient has to take the charter flight, air ambulance that will cost around 15 lakhs per organ to bring.”
Establishing Healthcare in Afghanistan
1:11:41 to 1:13:35
Discover the challenges and successes in building a healthcare facility in Afghanistan.
“If we do 12 hours then most of the time we lose commercial flights.”
Lessons from Healthcare Challenges
1:13:36 to 1:15:57
Understand the lessons learned from operating in a challenging healthcare environment.
“Monday I went there to see the facility.”
Improving Global Healthcare Standards
1:15:58 to 1:17:40
Explore what other countries can learn from India's healthcare model.
“So there is a mismatch of the need and the opportunity.”
The Future of India's Growth
1:17:41 to 1:19:51
Reflect on the importance of dignity in labor for India's future growth.
“But the eight hours, as long as you are enjoying your work, you will never get tired.”
Transcript
Automatic transcript. May contain errors.0:00Any patient before coming to hospital, if they are above poverty line, 40 % of the people by paying the hospital bills, they become below poverty line. In India, the income that we make, healthcare challenges are very, very expensive. Lung transplants, the minimum cost should be 60 lakhs to around 3 crores. And how much a kidney transplant costs in India? 8 to 10 lakhs. Liver? Liver will be around 35 to 40 lakhs. Bone marrow transplant also is a little expensive, 40 to 50 lakhs. You went to Australia to study. Explain India versus Australia healthcare. We were also wondering. There is a systematic way of referral.
0:36There is no way a cardiac patient directly go to a hospital. It has to go to a primary physician from the next level. Unless he refers, he can't be able to go. We don't have. Now today, if any problem, they directly go to the biggest hospital. And they spend a lot of money. There is no need actually. There should be a proper systematic way we should be able to refer these patients. If you compare ourselves with any other country, which country would be the best? As of today, whatever technology that is available in America, it's available in India. Even some equipments are better available in India.
1:08Worldwide, people are coming to India to learn. Many people from America also are coming to get trained. The reason is we have a huge volume. What we see in one hospital, for them to see in the same volume, it may take one year for them. One framework or a checklist that you follow when you acquire a hospital. One I should able to see whether there is an opportunity there. Is there a need for a hospital? Second important thing is the affordability of the patient. How many affluent people are there? What is the percentage of insurance that they are doing? Third important thing is the availability of the doctors.
1:42Fourth one, unless we don't have the proper management and all those things, it's a very difficult thing. India has lost about 75 ,000 good doctors, which is a lot of Indian doctors go abroad and then they don't come back. What do you think? What goes in a doctor's mind when they are in US or UK or Australia?
2:06He has performed 30 ,000 heart surgeries in his career. He trained as a cardiothoracic surgeon in India and Australia and came back home with one mission, to make world-class heart procedures affordable for every family in India. He has also set up Afghanistan's first state-of-the-art diagnostic centre in Kabul. Our today's guest is Dr. B. Bhaskar Rao, founder of Kim's Hospitals, one of India's largest healthcare groups. In today's episode, we'll discuss how did he make heart surgery affordable for the middle-class Indian? Why are India's best doctors leaving the country and what will it take to stop them?
2:48In healthcare, is the best technology more important or the surgeon's experience? And why are doctor-led hospitals better than corporate-run hospitals? Watch this episode till the end. And to know more about Kim's Hospital, check the link in the description.
3:07If somebody is watching you for the first time and they don't know who you are, tell them who you are and what do you do how would you explain them so the only thing is I can able to tell even though my success story in the last four and half decades and that will able to inspire them and see that how much we can able to take out from his talk whether we can able to really do something. See in the human beings some people have ambition. Some people don't have an ambition. They are very very comfortable. But that doesn't mean they are not good. They are the very good people. The ambitious people kill their self and then they want to achieve something.
3:57That is their fate. What we can say. So basically what I am saying is whenever we want when I started my career in the younger age itself I have a strong ambition that I need to be somebody. I need to do something to the society. So I was not very, very passionate about education. I was passionate about doing something every day. Even my childhood also. Even if I go to village in my holidays, I used to go and do all the field work and everything. so that I enjoy more than going to the school and sitting and listening to them and passing these exams and all so what it has been given me a good opportunity is I learned a lot of skills during those holidays period whether it may be games whether it may be sports whether it may be working in the field or talking to the people and all the things whatever do you I never feel that I am doing something wrong and I enjoy it really.
5:09That's where later on if I grown like this, I realized that is called dignity of labor. Any person who understands the dignity of labor and passion, they are bound to grow whatever they want. Whatever they think. Whatever their vision. They will definitely achieve. Most of the people, these two are lacking now. The dignity of labor and the passion. So then I was studying then I saw one of the doctor was an RMP doctor. So he was doing in the village going around the all the houses, give some injections and when he come in the morning there will be 20-25 people who are waiting and when he comes back they all stand up and put namaskar and all those things.
5:57That thrilled me because you get lot of respect here. So then this is the profession you should be able to choose. and then I pursued it I couldn't get it and then somehow we could able to manage to get that and then after getting it then I have two incidents in my family one during my MBBS my sister got a heart problem we could not able to understand or even to find out there is no right doctor in that place if I would have got a good doctor who can able to identify her the disease was being cured and she will not be crippled. All these days she has been handicapped. That is the reason I decided that I need to do something in my society in my hometown.
6:46That is the strong desire I put. Then when I want to do that then okay then it's an idea. To implement and execute is the toughest job. True. Then I realized to do that neither I don't have money nor I don't have the capability of attracting doctors and do it. So with that in mind, continuously keep doing my studies. Then when we were in the medical school and then I realized that the medicine itself was not able to achieve what I want. Then I went to post-graduation, a super speciality and I went to overseas and studied in Australia for three years. I saw the difference between Indian health care and Australian health care in 1985.
7:33Then I realized we should also be the number one in the world. We should be able to provide a world class health care in India. So once I come back, then my desire didn't stop there. Even though I become a consultant, I'm doing good work and also making good amount of money. Then I started my career as a consultant in Hyderabad. then my desire is that I need to do something to my hometown. What consultant you were? I am a cardiothoracic surgeon. I am a heart surgeon. But you were consulting the cardiac patients? Yeah. Or like the doctors who were dealing with these patients? Yes. I can see only the heart patients.
8:15And then those patients who request surgery, I will handle that. There is another field called cardiology. Those people investigate and refer to us. so when I used to see that then I used to go to my hometown every weekend and district there I used to see patients when I see the patients those who need money I mean need heart surgery then I used to bring them here and operate and send them then when I keep doing as a consultant and also doing these clinics I realized making healthcare to understand much better I found that there will be three stakeholders most important to make a successful healthcare business.
9:03The three people are, one is the most important people are the patients. The second important is the human resources like medical, non-medical. The third important thing is also equally important is investors. Unless somebody comes and invest money, you can't able to run. so then I realized what these three people are expecting the patients are expecting an affordable cost very accessible to the doctor 24 by 7 and also quality care so that they can be able to go home whereas the doctors expects they want a good technology that is available good infrastructure that should be available as many as patients I can see and also as if there is any challenging cases I have the freedom to work in the hospital so that I can be able to do the challenging cases, take up and get a good reputation and satisfaction.
10:04The investors are only two things. They always see what is the attitude of the promoter. Whether he is going to give it back to money or are you able to eat? Second important thing is whatever money that they invested, they look into the return of investment, what the money. These are the three. Then to do that, then I started my career to Entrepreneur Journey in 1996. And neither of these things I don't have. I am only a consultant with a good reputation. I could be able to bring the patient. That is the only strength I had at that time. Then I moved on to one of the trust hospital where the investment is not required.
10:45Already running trust hospital. when we want to do a lesser cost to the patient like affordability quality care then few doctors of like minded people join me then I can able to build because I don't need an investment at that I have already done that whatever little investment is there whatever I saved that I have been used with that within 3 to 4 years whatever I was thinking in my mind affordable quality care I could able to build that like what I have done I used to fishets don't have the money at that time to get operate second thing is I was a very young guy to give their heart unlike other organs in the body heart if you do this way or that way it will be able to happen so that's why they don't have money then I realized how to solve their problem that challenge I faced then I was thinking and looking at it there used to be a CM relief fund and a PM relief fund the chief minister relief fund used to give 30 ,000 rupees to the patient the prime minister relief fund used to give 20 ,000 rupees so then 50 ,000 rupees you can be able to get being a trust hospital I decided I should be able to do it at 45 ,000 rupees per heart surgery which in the other corporates it will be around 1.5 lakhs per patient which most of these patients cannot be able to enter there so when I go to my hometown not only my hometown from nearly 10 districts I used to go and run the OP.
12:18And I used to bring all these poor people, apply these things and then do the surgery. Excellent results. So my team has been impressed the way which we've done. One, we are doing affordable cost and quality care, successful results. And then these are the people we thought, then yes, we can be able to trust on him, whatever he does. while doing that my irresistible desire is to build my hospital in my hometown so then I started in 2000 in my hometown that is about 200 bed hospital and by that time whatever I have been earned in this trust hospital and then some bank loans took so that the investors also we didn't require at that time so we build because it is an opportunity for the public as well as the doctors the movement we build many of the doctors has come patients used to come because we used to do around 60 % of the cost when compared to nearby states like Chennai Bangalore Hyderabad so people used to come very fast and then picked up very well with no time and the other important thing what we saw there is most of these backward people or underprivileged people to go to either Chennai they need to speak Tamil which they can't if they want to go to Bangalore they need to speak Kannada which they can't even if they come to Hyderabad Urdu they have to speak not only that communication the amount of time energy heart surgery means it will cost about nearly 10 days you have to stay in the city their food their accommodation one person will not come four or five people will come so with that we can able to see that by putting there it has been a very successful venture in no time because there is a need was there, opportunity for doctors, opportunity for the organization, everybody is happy.
14:16So with the success story has been built a lot more of my credentials with my colleagues and team. By seeing that, one of the doctors asked me, sir, why don't you build one in Rajamandri in the same northern state of Andhra Pradesh? Oh yes, we can be able to build, so there also I don't require any investors money, then I build. That was also instant success. After two success, then there is a buzz created among the medical field where it was there. These are all the things I was promising when I was doing my education itself. I was in Nizam Shinistri of Medical Sciences, Apul Hospital, Chennai.
14:56Wherever I go, I keep saying, I want to build a hospital, I want to build a hospital. People used to laugh at me in front and as well as behind what this guy is talking about. Then after seeing these two, then wherever I said these things, yes, he is the man of words. He has built and he has been created. Then the entire medical fraternity believed. Then after these two successful things, then I thought we want to do it in the districts for the lowest socioeconomic people. But what happened then, I want to do it in city. Why only a lowest socioeconomic? We need all to provide some rich people.
15:37then I want to do it then it is going to be a cost a bomb all these two things are very very small one is about 10 crores another is about 3 crores now then the desire didn't stop there then I mooted this idea into all my colleagues who are working with me and their friends and all those things and when we floated this idea amongst them they also inspired yes we should also To do something better for the society. Being a doctor, we are the right people to do. Then we acquired one asset. Which is around nearly 20 crores. So then we were able to try to pull all those things. In the 20 crores, doctors don't have that much money.
16:23Then they were asking. Then that challenge how to overcome. I told them, we used to get, doctors used to get a personal loan. Let all of you, nearly 40 people are there. you take 25 lakhs 50 lakhs so that at least 10 crores will be pulled so they took all the with the trust that I have given without asking any questions then another shortfall another 10 crores was there then I requested my family members my brothers they come forward and invest so that the challenge of investment has been overcome so what did you what did you take in 20 crores we took the facility it was a running hotel it was a running hotel okay We took over that hotel.
17:05With this 20 crores, then bank has given another 70 crores. So, with this 70 crores, we do the remodifications and everything. We started within one year time. Because of all the doctors who have been invested, they are all very highly reputed people in Hyderabad. And they also have partners in this. So, then that will took off in no time. That 150 beds we build, within six months, there is not available of bed. then in 2007 this is started in 2004 in 2007 we built another 200 beds there with the same money then the money which is generated that also in no time it has been full and then running good and more and more consultants planning to come and join then there is luckily we have another 3 acres land there I thought we will build a 1000 bed hospital one of the flagship hospital in the group then ideas come then now we need to be able to see how we need to go and then we call the private equity people then the private equity people came and invested about 60 crores then with that this has been how much revenue you were doing when they invested 60 crores?
18:19at that 60 crores we used to do about 100 crores revenue and about nearly 15-16 crores EBITDA okay so the why I am saying is all these hospitals started by doctors there is a problem what I want to convey to the people see basically any entrepreneur what they should be able to learn is when they start a hospital that is not the issue anybody can start the hospital they don't understand the challenges that what they face like suppose all of them built a beautiful structure lot of doctors joined together and built, they could not be able to run The reason is not that they can't able to run. They can.
19:04The only thing is they don't have the loss funding. Many of the industries are dying today, not only in healthcare and everywhere. They don't understand the word called loss funding. What do you call it? Loss funding. Loss funding. Okay. The meaning for that, suppose you establish a hospital. We were only thinking up to establishing a hospital. We put our equity, we get a lot of the bank thing and we establish. Sometimes it is overrun by hook or crook that will come and finish. Then they start. Usually the operational cost in the first month will vary nearly 3 to 4 crores to 10 crores depending upon the place you start, whether tire 1, tire 2, tire 3.
19:53But you are not able to get the same income in the first year, first month. then second month onwards you are not in a position to pay the salaries the consumables and everything so it will take usually about 12 to 18 months to break even so this period is under the loss so we need to keep that buffer money what we call as loss funding any industry whoever is grown unless they don't check this loss funding those institutions will not able to sustain and they are not able to make it. Usually the last funding cost will be 25 % of the capex what you invest in. So suppose you invest about 400 crores.
20:43100 crores you need to keep it for the buffer. Even small businesses even the smallest business even a business like this in the day one you may not get the returns what you are spending. We have a 13 month break even. So, this one people should be able to understand for any new entrepreneur already started and on the job. So, most of them should be able to identify the lost funding is there or not. You may have all the know-how, you can do a better job, but without lost funding, you are a failure. True. The reason is from second month onwards, people start saying that this hospital is gone this industry is gone he is not paying salaries he is not paying the vendors money he is not paying the power bill so then we need to themselves will be able to propagate so that's one thing through you I want to convey to all the entrepreneurs this is the most important you need to be able to understand the business that is the stakeholders of the business what their requirement is and what is the loss funding, whether you have the capacity to put that loss funding and what is the challenges during the loss funding or the running things, you have to analyze.
22:09Then it is a success. There is no failure. It is not the individual. Everybody wants to do a good job. Everybody has the capacity to do that. There is nothing like because he is successful, he is something different. Capital is the problem. Yeah. This is the important thing they should be able to understand the business. So after doing this why he said because of these acquisitions come. So after 14, two sons joined and they are building up. By this time we have been replaced with two private equity investors. First one, second one gone. Third one also has come. They have come, they have sold it to someone else.
22:49Yeah, every four years they want to make their money, they will get out of it. then I saw this this is a big challenge every year I have to go make a road shows explain and all those things wasting over 6 months or 9 months time then I thought it is better to once for a list everybody will be given even the doctors whoever is invested with me in the 2004 they also don't make any money they have not taken anything back so there is no exit for them so that's why we went for IP public in 2020 I think during COVID time all our roadshows done and video only Zoom calls wasn't it a good time for you to yeah you'd have saved a lot of time and also good time because people were under panics hospitals would boom the brand people would give you more premium so they didn't give premium at that time afterwards it has come premium till that time the healthcare was not in a boom healthcare was not Not at all in a boom before that.
23:54Before COVID. We done during COVID time. Post COVID they realized there is a great potential. Not only that the patients also realized the public also realized health is more important than anything else. And that's how they should have done it. Then when we were doing this entire journey. One day the then chief minister was a good friend of mine. We met him. He was asking. He was also a doctor. he was the chief minister and every day of morning there are hundreds of people used to come in front of my house asking for some help initially I said there is a CM Relief Fund used to give BM Relief Fund because these people will walk into the CM residence and they are asking at least my family should survive for another six months or one year and then he came and asked what to do then I asked how many of the population will be of these many numbers they said it is only 20 % of the population if I help I am very great then I told him 20 % is very easy to help see any hospital you take 20 % of the beds will be always vacant so you pay 20 % cost whatever is the expenditure that we are spending on the patient that is the pharmaceuticals the power bill water bill any materials that we use you pay that one this 20 % of the beds also full it will not go waste and our doctors also will be happy they are treating more patients then he agreed then we were able to call all of them entire government to my hospital two days they stayed with us prepared myself created packages and then then they said then how to execute it so basically any idea comes it is easy to do that.
25:53The most challenge is the execution. That having been done this you need to give the full freedom to you till we execute it. He agreed and given to all the things. The most challenging is when we are doing cost to cost. Hospitals need money immediately. So you create a green channel within 10 days money has to come to the hospital. He agreed for that. Then he also says that with the government sometimes you may not able to pay in time even though you have given order then give to insurance company then you call the insurance company and give them the premium so that insurance company will be able to do it then these two things are fixed now to get the patients how to propagate this one then initially he said okay I only gave the idea you go into a public meeting if CM is coming and many people will come you announce this scheme and whoever patients that comes on that public meeting who are looking for some help.
26:50Ask them to come prepared and then I took a bus there. Put all the people into the bus and bring them to my hospital. Treat it. In two, three times he visited and wished all of the patients. Then it spread like anything. So initially he started only in three districts. Three poor districts in the Andhra Pradesh. One in Telangana. One in Raheel Sema. Another one is in Andhra. Kostal Andhra. So three districts picked up spread like anything then at that time we have been put only 350 diseases for specialities like cancer brain surgery heart surgery kidney transplants because these are the things who are not existing in the government hospitals so that's why we should be able to give this one with this the public private partnership patients will get the high end quality in a highly sophisticated corporate hospitals they used to get the treatment First two, three months, all the poor patients came and got benefited and went home.
27:54Then once it has become, then it has become a political thing. So 300 diseases added. It becomes 3 ,000 diseases in five to six years. So people used to come and you add this, you add this, you add this, you add this. Then it is becoming a challenge in the corporate hospitals because we took only 20 % of the beds. but when all the now today below poverty line at that time they told it is 20 % today 85 % of the public is below poverty line is a big scam nobody can believe it there are so many even the politicians ex-ministers also have the below poverty line so then they come those they can able to afford not that they can't afford because if something is coming free why should I pay for it then they will come back sir they will all take this is the cost and everything they agree then they take out the triumph card I have an hourglass card then after that then it is then again after that you will ask sir I will pay extra money you put me into a single room the scheme what we have been created is only for general ward patients because they are all below poverty line so that is the only affordability hospital can bear.
29:15That's why you're given that opportunity. So with this then corporate hospitals face a lot of problem because whatever income that you used to get we lost also. Because everybody is coming in through and this card creation was done only for cost to cost. Otherwise we're not able to sustain. We're not paying for our doctors and other things. So then that's why more and more hospitals have come. This augustry scheme because of that the entire country today this is the origin Ayishman Bharat Ayishman Bharat any other different states have different schemes of the same this is the first one which you started yeah you started with Reddy sir right yes it is the I am the chief architect not only architect execution how to do it that is the most important and this is 2007 2007 so after that they didn't even increase the prices also because people are coming patients are coming, many hospitals are coming forward because they are getting volume and all it is good for small small hospitals may not be good for big hospitals so that's how healthcare has been made it very accessible, affordable to a common man this is all big I contributed to the society once we have done that then now today when we talk about 2007 when I started the bed cost used to be around 10 lakhs.
30:49Maximum about 25-30 lakhs per bed cost including equipment, infrastructure and all. Today it varies from 1 crore to 1.5 crore per bed cost. The infrastructure, the technology, the dollar everything has increased drastically. And the expenditure has become very very high. if any patient comes today it is very impossible for them to afford this cost. I can tell you here in the worldwide, not only in India any patient who comes to, before coming to hospital if they are above poverty line 40 % of the people by paying the hospital bills they become below poverty line. This is a fact. so then I keep on when we are doing like this all these things then how we need to overcome this this is a big challenge basically if you don't overcome and then running hospitals also a tough job and there is so much patients also can't afford so when we do this then I keep on thinking and given so many times so many people so many health ministers and chief ministers given the thing so there is a solution for this one time patients wants a good quality healthcare government is not in a position to support that or provide and the same time patients wants to live for a long time how to go about it I thought and keep thinking and got a very solution for that the only thing is people doesn't understand health premium is an investment they never expect that it is an investment it's an expense it is an expense the day when they invest as an investment and they make more money when there is a need that's what we do excess money we will invest somewhere we will make money here also it is the same the day when the people realizes it is an investment and then it will be accessible to every citizen of India.
33:11Health insurance. Health insurance. The moment when they take this as a premium is an investment everybody can be affordable. Some of the people will have thinking that I have been taking the premium last 7 years. I didn't get sick. Then they get tension. why unnecessarily wasted my money. So there is a false notion. See, when you invest, it is a long-term investment. It's not a short term. You keep on investing, you get more money at the end of the day when you need. The cost of this investment is also very, very minimal. Anybody can afford. See, suppose if you take one packet of cigarettes, that cost only you spend, it will be there.
34:03If you also take, everybody will have some, whoever is drinking, one bottle of beer in a week. That is enough for this. Let's break it down. Okay, multiple things we do. We go to the first part of your story where you said you saw in the village, you saw a doctor who was very well respected. And there was a big line in front of his clinic almost every day. if you go to that point that doctor in village and now that you have built so many hospitals with thousands of beds now what does a doctor in village have which even a thousand bed hospital can't provide good see the small doctor there he never used to charge any money maximum you can able to give 1 rupee, 2 rupees or if there is any functions, they will come and give some food.
35:01That's why you could be able to govern a lot of respect. He has ethics and values because he doesn't also have any expenditure. There is no investigations. It's purely on a clinical basis. There is nothing. So the clinical basis means if this one doctor used to see the entire body and give treatment. Here today, for every specialty, there are 10 doctors. for every special you take even ophthalmology you take even dental there is a number of sub-specializations are there and not only that there is so much of technologies required investment there in his own house you can see everything today for a bed if I want to provide it is costing about 2 crores if I want to put a thousand beds 2 ,000 crores and one doctor seeing the entire body for the entire body today we have 200 doctors to see that.
36:00Then when we want to see that this will become a corporate style. Corporate is not a real good term but we are trying to do a good quality care. And the doctor there by his experience of seeing the number of patients. If it is a typhoid these are the symptoms. If I give this one we will do. 90 % you will be successful 10 % if you is not you will come back and give some other medicine here that is not the case people are expecting you do the diagnosis first and treat and if something goes wrong I am paying this much money I will hit you respect is gone between the patient and doctor the relationship is totally changed when compared to that village to this corporate what has changed?
36:52what relationship now? see there they used to respect a lot and they used to listen what he says. Here, the respect is not it is becoming, I am paying money I am demanding this much. It is all the when we were demanding and paying then the courts come into the picture. Legal issues will come. Now today a clinical medicine has become a defensive medicine. So now if somebody sues, they are asking everything as a a sort of where is the proof then I need to see I have done all these investigations one side when we want to do we don't need to do so many investigations I can clinically try if everything goes smooth you will also be very happy doctor also very happy if something goes wrong you will directly go to the consumer court or court when we go there why you didn't do all these investigations then you will show it is happening today So that's why the more value, ethical, respectable, good relation between the patient and the doctor from a village has changed to a commercial, a defensive medicine.
38:07Legal. Legal. So many things. A sophisticated, they expect a lot of things. How many cases do you go through in a year? How many people would do a case? now even if the cases number is less but in future it will come then the second part you said you went to Australia to study explain India versus Australia healthcare what is the difference so at that time the India doesn't have a good infrastructure good technology mostly even MRI, CT even transplants we were not doing in 1987-88 I was there in Australia the infrastructure is very good and then the systems protocols, processes, everything has been systematically done here everything done by one man there everybody will do their own we were also wondered back in India we are doing only one man here 10 people are doing the same system has come back here so once you improve this it is a governance, we need to be able to follow rules so with all those things and even there is nothing like a small small nursing homes and all those things.
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39:20They are all very structured manner. Big hospitals. Small small clinics will be there. Primary health centers what we call. From there there is a systematic way of referral. There is no way a cardiac patient directly go to a hospital. It has to go to a primary physician from the next level. Unless he refers he can't able to go. That's where you can also cut down lot of cost. That is become a family physician. We used to have these family physicians before. Now we don't. We don't have. Now today if any problem they directly go to the biggest hospital and they spend a lot of money and they make it you and cry and necessarily spend money.
40:01There is no need actually. There should be a proper systematic way we should be able to refer these patients. But are we behind in terms of technology in healthcare around if you compare ourselves with any other country. Which country would be the best? As on today, see, basically, whatever technology that is available in America, is available in India. Okay. Even some equipments are even better available in India. Like, suppose, recently we acquired about in KIMS, magnetic resonance focused ultrasound, which cures the tremors in no time. Five minutes. There are people who have been suffering with tremors.
40:40They cannot even come to the functions also. hand will move like this. And even he can't be able to hold the glass. One of the patients we treated is a teacher. He cannot be able to hold the pen. Then his life is very useful for his medical educational profession. The moment we could, in five minutes, you could write everything. You could sign everything. In five minutes? In five minutes. After the treatment is over. Yeah, through the machine. What we do is, there is a brain, some center will be there which creates these tremors. We will be able to identify the focused ultrasound and that will go and trigger there.
41:18Then we will test. If we are able to put a needle there, if the tremor stops, then that is the right position. Then we will ablate that. So that means that organ has totally gone and then is free of… By the time you come out of the MRI, you will be totally free of tremors. For life. For life. Or will it come back again? Sometimes, you see, these are all technology. We don't know. But as on today, they say it is a permanent. Even if it comes again, we can go back once. See, the other way is... And what's the cost of it for one-time treatment? It is costing around 20 lakhs. For five minutes. It's very expensive.
41:57But 20 years, 15 years, 5 years, they struggle. And especially these people, if you want to do any surgery, you can't do some 70 years, 75 years. No anesthesia or nothing. You just go to the MRI, come back after two hours. Like that, we have technology. And why do tremor happen? Why do people keep shaking? See, basically in the brain, some of the centers, each body is governed by each portion. If there is some disease or anything, these things will be able to move on. And it's totally like curable now. Nice. And so many diseases, like we have a Tulsa Pro, where prostate, without surgery, we can able to do ablation of the prostate cancer, prostate things.
42:43You know now the prostate cyst which is benign cyst not even cancerous cyst is increasing in young men. I was reading a research recently. Their benign prostate is different from sometimes what will happen if the benign prostate is there then the urine output will be minimized. Then stagnation of the water and all. So that's why these are all hormonal changes and all those things will able to happen yes previously all these diseases cancer and everything used to come at the age of odd diseases beyond 60 65 like that today it's coming around 25-30 years the incidence has definitely increased in every disease so early stages even the breast cancer used to come at 15 years 20 years previously we never heard about it so this awareness one portion identification and all those things and the awareness of getting done the executive health checks is the most important then you said you came back from Australia right if you if you look at the data almost India loses like about India has lost about 75 ,000 good doctors to brain drain which is a lot of Indian doctors go abroad and then they don't come back because they don't want to and their reason is because they get a better i mean that's what people say that they get a better life there they get more money there they're able to actually build a much fulfilled happier life there right what do you think what goes in a in a 28 year old doctor's mind when they are in us or uk or australia and they've finished their super specialization now they have an opportunity either to come back to india or just stay in that country.
44:39What goes on in that man? See basically what's happening today two to three decades back what you said was correct. Most of the doctors as soon as they get they don't even get trained one the training opportunity was not here. So that's why they need to go to abroad to get trained and also exposure for the technology and other things. Then once they are very happy there they never used to come back. Today if you take when compared to last two to three decades going abroad has drastically come down previously they used to go down they used to go to overseas to learn once they learn and they are very happy most of them are settling down because as you mentioned that they are making good amount of money and all those things they never used to come back unless somebody who is having a real loyalty to the country and they want to come back and do service.
45:41There are many people out there. Today people are going not for learning. There are many people, worldwide people are coming to India to learn. Even if you take any African country, many people from America also are coming to get trained. The reason is we have a huge volume. What we see in one hospital, for them to see in the same volume, it may take one year for them. So that's why people are coming here to volume. So the learning. The good advantages what they used to have there, they can have a very smooth way of life. There is no need of any hurdles. The moment when you go, they settle down.
46:24In the sense, settle down in the sense they can be able to buy a car, they can be able to buy a vehicle, I mean house and their children's education is no issue. They can be able to and very good number of hours they can go and spend with the family. All those things were very, very comfortable. But which is not the case here. We are not still established and streamlined. But now it is there. But the only thing, when you go there, you never bother where you are staying. Whether it's a thousand family village, or a New York, or Houston, or anywhere. There will be the quality of life and all the facilities are same whether it is a small village or a big city.
47:11Even they prefer small village because they get all the facilities more comfort when compared to the city. Here, the missing link is that. That's why still people are going. Suppose we have plenty of doctors. All have been catered in the cities, metros. Nobody is going to the districts or even the small towns. The only two reasons they are saying is there is no good technology, good hospitals. Second thing is children's education. And they think that they may not able to enjoy the life there. The same person goes there. He will be able to live. At the end of the day a US doctor will be able to save more or Indian doctor.
47:55The saving will come Indian doctor will save more money than the reason is they are all the governance legally everything they will have compulsory health insurance. They will have the professional indemnity. Their car has to be insurance. House has to be insurance. There are so many other things expenditure will go on. Very systematically. Indian doctors will their savings is more. Got it. And doctors are usually not very entrepreneurial. They are not the CEO material. They are not founders. They are doctors. And that's why they are known for it. And so it's very unusual for a doctor to take a loan to start a business.
48:37What convinced you to start? See, basically the entire thing to take a loan is, my family people also used to my brothers run a business. So I can understand the value of the business, the loans and other things. Today, Indian doctors are not entrepreneurs. differ in the sense all the healthcare in India is built by the doctors only. The so-called big chains and they are the successful people. You take Medanthi, you take Fortis, you take Narayanan Ardhaya, you take Kim's, you take any number of chains. It's all built by the doctors. Apollo? Apollo also a doctor. He practiced see all of the biggest one point I want to convey here is all these chains all the hospitals even these are all chains I am talking about.
49:41If you take about all small small nursing homes it is all done by doctors only. So here many of them should be able to understand one of the success story of this is if you understand what you are doing and if you have experience of 10 years or 5 years in the same field the success story is 99 % similarly in healthcare there are many people who have made money, they want to establish a hospital, they establish it the success story is not that great they keep burning it because they understand that, it is not only in healthcare you take any field you take any field those who knows the business, those who have been worked for 5 years, 10 years and 15 years they know very well how to run the business except this lost funding that's why they are very successful, any field you take it they are all successful when they work for 10 years you take all the pharma industry one day or other they all worked for 10-15 years in the pharma industry only, they all were MRS and then they started you take all the original politicians, they are very successful.
50:58Those who come with money, they are not successful politicians. So the people who are there, they understand the root cause, the ground reality. They can face any type of challenges and overcome. But whereas other people come in a different thing, they will not. There is no exception for this. You take about any car factory or anything. Those who worked in the industry, even IT, they all worked and then started like that anybody who worked in their own field they have been worked they understood the business very well and they were able to grow there is no exception in that true tell me one one framework or a checklist that you follow when you acquire a hospital you said you acquired an asset and now you have more than 25 hospitals all around the country there must be some like a basic checklist like what are five things that you have to look in hospital before acquiring it one I should able to see whether there is an opportunity there second thing is if I am what do you mean by opportunity so when suppose if there is a hospital and there are is it the area is overcrowded or not suppose if there is a thing we require only thousand beds in that in thousand beds when I am acquiring it is a 200 bed or beyond 1000 beds.
52:27Suppose in 200 beds there is a great opportunity because another still 800 beds is required there. If it's already 1000 beds if I go and acquire there is no growth there. True. So that's why the opportunity I mean in the public is there a need for an hospital. But how do you assess? Under served. We see the service is basically this many number of patients this number of population this number of beds should be there. Okay. What's the formula? number of population usually 5 to 6 % of the population will get sick okay so if a village has let's say say about 1000 people 1000 people 50 people will always in a year will get sick and based on that and then 50 people would need 50 beds or no no they may need one bed so like what's the bed calculation 5 to 6 % is ratio for sickness sickness then versus how many people would require a bed each patient will stay about what we call as a loss, average length of stay each patient comes, it varies from 3 to 4 days suppose this 50 people comes there, average about 200 days that means if we take one bed, it will cover 200 days okay 50-60 people but out of them how many would require a bed out of 50?
53:50sickness means you mean people would require bed bed okay and then they would like 3 to 4 days the outpatient will be around 10 % in the population 10 to 15 % so outpatient would be about 10 to 15 % 5 to 6 % would require a bed and average length of stay would be 3 to 4 days so like that we will calculate and suppose there is a 10 lakh population that is one aspect second aspect the opportunity means again what are the specialties that are existing there in the city right now for every specialty of 10 lakh, 20 lakh population of districts. We need all the specialties like cardiology, renal, gastro, neuro, orthopedics, general medicine, gynec, everything.
54:35Most of the times in the new areas they will have one or two specialties only. There may be a thousand beds but there may be one or two specialties. So if I go with a multi-specialty so there is an edge for us. People try to come. So that we'll see. whether there is an opportunity there. One, the patient population. Then what are the specialties in single roof that they are having? These are the two important things. It's not cost? Cost is not the... No, that's why I am coming. Now, the affordability. So, first is opportunity. Second is affordability. Yeah. Even if there is affordability, if there is no opportunity, there is no point.
55:14First, opportunity is the most important thing. Second important thing is the affordability of the patient. How many affluent people are there? what is the percentage of insurance that they are doing and what is the per capita income of that place. Based on that, we will see. Third important thing is the availability of the doctors. So even though we can build a hospital, there is an affordable. The third thing is we need to be able to see whether the existing place doctors are available, practicing on their own single, single specialty where we can be able to attract them. Or there are people who are studying.
55:51they can be able to come back if there is a good facility is there. So the doctor's availability. Fourth one is the management. So that unless we don't have the proper management and all those things it's a very difficult thing. These are the five important things and then the due diligence. So if you do the, there may be land problems, there may be building problems there are so many problems. Land problems are the most common. More common, yeah. so these five if we are able to look and they are all comfortable then we will be able to see okay so you've worked in this and you've worked on grassroot level in your words right you've done about 30 ,000 surgeries right that's that's a lot what does a doctor who has done let's say 300 surgeries versus 30 ,000 surgeries Like what does a doctor see?
56:52After 30 ,000 surgeries, what do you see which you were not able to see when you did only 300 surgeries? See, the 30 ,000 experiences you'll have, you can be able to tackle any type of complication on the table. Because you have seen a variety of the same complications in 30 ,000. Whereas a 300 doctor, 300 person who has done not many number, you might have seen. But whenever we have seen this 30 ,000 journey, if there is a complex surgery, if I have done about 100 complexes, I can be able to identify, okay, I would have done here, this way, can be able to help. But a person in 300, if you do only two or three complex cases, he will still struggle.
57:35But he need to put a lot more efforts to see that he should go all the time wrong. Right. But then, doesn't it backfire sometimes because a doctor with 30 ,000, 40 ,000 surgeries will have a very fixed mindset of how to deal with a complex situation. And somebody who is new will maybe come up with, understand new technology, new things and will be able to actually move fast and be able to solve a problem much faster in a different way. No, the advantage in the human body, it's very dynamic. there is nothing like it is fixed. Even if I do 30 ,000 even if I do one specific surgery like say about coronary artery bypass surgery even if I do 20 ,000 of that all 20 ,000 to be different.
58:28There is no second opinion on that. So that means we are always on the toe whether it is a number that is not there but it will only give you the quick decision making. The surgeon should be very very good on making quick decisions on the table. Sometimes you may find a lot of surprises. When you have surprises, then you should be in a position to tackle to save the patient. That's why it's very dynamic. Every patient. See, similarly you see, there are 160 crores or maybe 600 crore population. No two people will be same, no? Unless it is twin. It has been created. So, it is every surgery of similar nature very rarely you find a similarity somewhere or other you will find some difference and his doctor who is old who is experienced are they like do they welcome technology now if you don't welcome the technology you will not be sustainable in the field people are demanding but are they not fixed I know how it works don't teach me this is your new thing I've seen it there are some people who tells and patient listens then they will choose the other doctor when they are losing the patients then he has to change first few patients you may say very formally I'm good I've done so many surgeries I know that if you lose two three patients then he has to change if he's not changed he'll be outdated like suppose you do a lot of previously when we're doing the abdomen like we used to cut everything for every surgery then there is a laparoscopic surgery then after laparoscopic surgery now robotic surgery has come so now everybody is doing robotic only the patients are demanding I need a robotic surgery the doctor has to go learn yeah he has he is forced to learn everything that's why these workshops they go and take things and come out the only thing is the patients expect a 10 star treatment but they want to pay only 3 star payment
1:00:47that is the only thing of the problem because when you want to do all these things they should be able to understand it costs but it's so expensive yeah sir 5 years back you did a surgery for my relative about 1.5 lakh now you are asking me 2.5 lakh please do that 1.5 lakh so you would have come at 10 years back
1:01:11but it's a lot but it's healthcare i mean when you compare to the world india is very cheap but in india for the income that we make healthcare challenges are very very expensive like it's almost unreal to even think somebody who's not somebody who doesn't have an insurance if at like 50-60 they get some major problem very difficult to tackle the cost of a private hospital that's what exactly I said the people who after paying the bills they fall into below poverty line but the solution is only today insurance today we are the pioneers in transplants we do lung transplants more than 100 every year more than 100 every year which was not happening it is the Asia's number one center in Sekhundrabad there the minimum cost should be 60 lakhs to go up to 2 and of 3 crores per lung transplant per transplant the reason is they come in the late stage they cannot be able to breathe and if you don't they will die then we don't know when the organ is going to come because it's all cadaver organs we need to pull and then I need to be able to support the patient on a heart lung mission like ECMO what we call when you're supporting this ECMO every day it costs 2 and 3 lakhs sometimes the organ may come after 30 days, 60 days so he's artificially maintaining in the mission till the organ comes, these are all expenditure these are all disposables because to maintain that.
1:03:00So what happens when you are maintaining an artificial heart and artificial lung, the entire body immunity system will differ. To recover also, it will take longer time. Today you come today and tomorrow if I do the surgery, you will recover within 10 days, maybe 30-35 lakhs will be finished. If you want to stay pre-operatively a long period of time, at the same time, you will expect to stay in the post-op also a long time. So it costs. We tell them this is going to cost you this much money but they don't mind but there is no other go for them if somebody has been earned and they want to live for two years there are many people who got operated and doing their work everything our own doctor has got operated and is doing surgeries and everything and is it what are the chances that you will be you will get back to normal life every day normal life only otherwise where is the point but then if you do lung transplant you overall you get weak no that is only after 2-3 months but you don't even after 2-3 months you are not able to live the same kind of life that you were living 100 % there are people our own relatives friends who got operated and doing their work what they were doing before even better than that and what is the percentage that this operation will be successful around 60-70 % 30 % will be there once all the 60 % 3-4 people out of 10 will not be able to make it.
1:04:30And without that operation also they will not be able to make it. So after that, but six people will be able to do it. And they live a good quality of life. And they do their job. It is unlike any other surgeries. Their quality of life is much, much superior. See, basically, before operation, some of the people will be on total oxygen at home also. You can't go out also. Even to go to washroom also, you have to go oxygen only. And those are the people when you remove the oxygen and they are great. But is this covered insurance? Some portion, whatever they have been done, it will cover insurance.
1:05:07People used to get up to 50 lakhs, 1 crore from insurance company. But healthcare insurance also, not many people would take like a crore or 2 crore insurance. Nowadays, many people are taking. And then the insurance company covers this? Yes, yes. Transplant is covered in there? Yeah, yeah. last year we did about 500 kidney transplants most of them are covered 150 liver transplants we are pioneers in the transplant program in Hyderabad and how much a kidney transplant costs in India 8 to 10 lakhs and liver liver will be around 35 to 40 lakhs lungs is the most expensive bone marrow transplant also is a little expensive 40-50 lakhs see the basic thing what I am trying to tell is the beauty because I have the passion that I need to do something to the society for the patients every unit wherever I serve I set up a multi-specialty hospital so that the quality care will be much much superior than doing a single speciality so that timely patients will come doctors will come to the patient to attend.
1:06:2324 by 7. That is the crucial period. The golden hour will not be able to be minimized. With that, they can be able to do the wonders. And every city, wherever we establish, we do liver transplants, we do kidney transplants, we don't do lung transplants. Lung is only in... So that cost will come down there. Maybe another 5-10 lakhs down. More than that is accessible to the patient. even liver transplant you have to take 2-3 weeks so they will be there nearer to there they can go home and come back that's why the primary aim of being a doctor and the passion I could able to establish we need to provide everything in the nook and corner wherever I set up a hospital tell me one thing which is the most wonderful thing which I read about you and very intriguing as an entrepreneur I want to know that is in your entire journey I think in 25 years of running you have been able to retain 98 % of your doctors.
1:07:32How? See the people who leave, there are a few as you rightly mentioned when they are not comfortable in the hospital when they don't get the freedom when they don't make the money what they are supposed to make then these are the triggering funds to leave the organization which I realized being a consultant I worked for this, these are the things I need to take care of the doctors I am taking care of that the third, fourth important thing which also makes them to leave is the finance so sometimes when most of the people people who are dedicated to quality care dedicated to have a freedom and all those people they will see the difference between the finance and the quality of life and quality of treatment and all those things, those people, they don't, if it is 10-15%, they never leave that.
1:08:31Even, there are many people who have given a full check, blank check, please come. But they don't know. They realize what is the value that they go, they get. When they give a blank check, they expect something to do. They won't give free of cash. Of course. I'm very comfortable here. I'm enjoying my life. I'm enjoying my profession. I'm making money. I'm making money. Where is the need of 10-20 % I should go out? And in fact, most of them, that's how we could be able to retain them. As long as you satisfy, they feel it is my hospital. The ownership, the responsibility. And they keep contributing to that.
1:09:10Do you as a hospital chain, do you invest a lot in research like R &D? we are doing research but not the way which we are supposed to do because that much money we can't able to take out from here and we need to be able to get some funds from outside and like that we have been developed there is one called Drishti totally blind people we created with an artificial intelligence with that these people can able to see the entire house it is prefixed images the moment when they are moving around they enable them this is the bathroom, this is the door this is this, this is this all those things will be there they can be able to identify and there can also be audio they can be able to find out what is happening in the entire world through AI what is the temperature and delete it will be able to give you the ceiling and we also invented and tried to do this deaf people basically deaf people is the biggest problem, they can't express to the doctor the sickness and doctor cannot able to what he is saying he will not able to understand so we created a national level tourism Zoom and we put one doctor who can able to negotiate it here with the patient so that patient will tell this person he will converse to the doctor he will give the treatment and he will be able to tell so now there is today when we are doing these organ transplants when we want to get a lung or a liver from a distant place, if there is a commercial flight available, their life will be only 4 to 5 hours.
1:10:56We will safeguard with that. If it is costing more than 4 to 5 hours the patient has to take the charter flight, air ambulance that will cost around 15 lakhs per organ to bring. Some of the affordable people they pay, otherwise they don't. That's why we are trying to develop where we can able to get a 10-15 hours life of the organ. We are almost successful in that with research. If that comes, a lot of saving we can do for the patient. Once this is successful, we are trying to get whether the drones can able to transport the organs. Or maybe increase the shelf life of preserving an organ? Yeah, that's what we are trying now with this.
1:11:43If we do 12 hours then most of the time we lose commercial flights. And then that will be much cheaper. Because anyway the cost of an organ would be so expensive that then getting it another 15 lakhs is a bigger, bigger, bigger cost. That organ transplant is expensive and for that again paying another 15 lakhs for this is much more expensive for them. You started a hospital in Afghanistan. why how what happened basically what happened at that time my brothers mentioned they were contractors when they were doing a contract they went to Afghanistan because American funding so good profits they went and did the roots then when we were doing there they met one of the doctor doctor said there is no facilities here and all the people for a CT scan and MRI and ultrasound they used to come to Delhi.
1:12:42There is weekly one flight only at that time. And then doctor came and saw all those things. So initially we will build a hospital there. Then I said we don't know anything. First initially we start we will do a diagnostic center. So that I can be able to test what is the culture and how the people and all those things. Even the diagnostic also they don't have a doctor there. I used to send doctors from here. Some of them are telemedicine and like that. Once it has been started and picked up very well, because the doctor has asked, our people also made good amount of money in that project. So at least, okay, even something goes wrong, whatever profits we made, it will go something.
1:13:24At the time, private equity people were not there. Then it started very successful. Then later on, few people have started on their own. and this doctor also then instead of putting a hospital the diagnostic centre itself has been very successful why should we partner with him we have now everything we understood they also started hospitals that way indirectly we created a good healthcare for the Afghanistan people so now most of the people are not coming there are some people come and got trained here so it is a gesture for the country what we earned money there so we thought they are suffering we gave that one but you didn't think about opening your own then see there the entire conditions are different basically as I said no we are all in Andhra it is because of this pressure we started to run a hospital even taking doctors is challenging one doctor to take radiology itself it took a long time even the lab technicians I used to take the management used to go there and then again the country is not that safe yeah at that time was it safe or no No, it was not.
1:14:32Monday I went there to see the facility. Just 10 meters away from there is a bomb blast. Those things have come and heated my house glasses. So, that was there. and when our people are doing after that there are two of our engineers has been kidnapped by the Taliban our workers my brother's workers then we used at least at that time and put the government also supported and safely got them got them out so there's a risky that's why there's no need actually we have great opportunity today yeah what did you what was your learning in that phase? See the learning is we will be helpful but we should also see that we should also safeguard our skin at what level we are trying to help.
1:15:30If that is the case if we can able to donate some money and establish yourself it is much safer if you want to do good rather than put the skin and then see what happens. So tell me one last thing which is what can the world learn from Indian healthcare today what should they copy basically they should also see that accessibility to the patient is immediate they can't be able to waste for three years there are in UK there is two years waiting list for joints and all to replace even the cancer patients also has to be some of them are dying in the waiting list so the two alter that they should be able to change a little bit of number of people should increase or they should be able to allow free number of people to put the hospitals so that to cater the need of the patient population.
1:16:28So there is a mismatch of the need and the opportunity. So the need is so much but the opportunities are very less. They should be able to change and then they let them be free that if they want to see 8 hours work let them work 8, 10, 11, 12 hours so that at least without increasing the manpower these people can able to they have the capacity to do but some of the laws and regulations they are very happy they are getting the money they are very comfort zone why should they work hard they should do but their laws is I think what I read loosely was they want doctors to work only specific hours so that doctor can focus and be able to treat patients in the nice way.
1:17:16Not be exhausted and tired and then see a patient. Because then it affects their ability to treat them. Yeah, that's what because they have been habituated to that type of lifestyle from day one, that country. Our country is we are working 18 hours. Still we feel we are not tired. We enjoy. So that's why they think they are right. Some of the people that they think that Eight hours beyond that, they were not able to concentrate much. But the eight hours, as long as you are enjoying your work, you will never get tired. If you are not enjoying, then actually if you say I want to work only six hours, still I want to see that patient and do, then you will feel bad actually.
1:17:58The Indian people, when they go there, they will feel bad. So I need to, we are accustomed to stay with the patient for a long period of time. and see that you will be able to recover. There are occasions where I have been stayed with the patient overnight. Next day morning, I used to go and operate. So, those are all priorities you should be able to select. You are fragmenting it. You are not making them ownership. If you feel ownership, you will never be tired. You never go any wrong decisions. Only thing is you are restricting. Today, you have been seen this much. after 12 hours, 24 hours you come back and see what is the continuation that you have there is no continuation and then they all see what the other doctor has seen whether it is right or wrong you should be able to go with the same protocols there is a totally missing link there here we go home 24 we will be able to find out our patient what is happening if you send the investigations as it come back have you been treated given you have taken any cross consultation all these things we will keep on following it true you are giving more ownership here you are feeling this is my patient I need to do something at any cost and with that cost with that work I am enjoying my profession true so it's fair so this is one thing that they should copy here is the last thing which I keep asking every guest these days is fill in the blanks is India will only grow when dash India will grow when they understand the dignity of labour we started like this and we are ending like this thank you so much thank you for coming here and spending time with me it was pleasure knowing you thank you so much for watching this episode to the end now you have to do three things number one Now, subscribe to this channel.
1:20:03Because as much as you subscribe, we will have guests to get better for you. Number two, please comment on us, what we did wrong and what was good. So, we can learn more feedback and create more better experience. And number three, you must have to share this episode with someone. Because one conversation is enough for someone's life. I'll see you next time. Until then, keep figuring out.
1:20:32Thank you.
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(00:00) - Intro
(03:08) - Who Is Dr. B. Bhaskar Rao & What Does He Do?
(19:16) - What Is Loss Funding?
(23:32) - Healthcare Saw a Massive Boom Post-COVID
(34:12) - What Do Village Doctors Have That Big Hospitals Don't?
(38:25) - Indian Healthcare vs. Australian Healthcare
(40:08) - Which Country Leads in Healthcare Technology?
(42:43) - Why Are Prostate Cysts Increasing in Young Men?
(43:50) - Why Don't Young Doctors Want to Stay in India?
(47:50) - Who Saves More Money: Indian or American Doctors?
(48:23) - What Convinced Him to Take a Loan to Start a Business?
(51:41) - 5 Things He Looks for Before Acquiring a Hospital
(56:28) - What Do 30,000 Surgeries Teach You?
(1:01:10) - Why Do Indians Find Healthcare Expensive?
(1:07:12) - How Has He Retained 98% of His Doctors?
(1:09:11) - Does He Invest Heavily in R&D?
(1:12:07) - Why Did He Start a Hospital in Afghanistan?
(1:15:42) - What Can the World Learn From Indian Healthcare?
(1:19:29) - India Will Only Grow When...
(1:19:57) - Outro
In today’s episode, we sit down with Dr. B. Bhaskar Rao, Founder of KIMS Hospitals, for an honest conversation about India’s healthcare system, rising treatment costs, hospital economics, and the future of healthcare in India.
He talks about his journey from becoming a doctor to building one of India’s leading hospital networks, the lessons he learned from healthcare systems in India and Australia, and what it really takes to run and scale hospitals in a country where affordability remains one of the biggest challenges. Dr. Rao also shares why treatment costs often run into crores and the harsh financial reality many Indian families face because of medical expenses.
The conversation also covers doctor brain drain, why thousands of Indian doctors move abroad, what India must do to retain top medical talent, and how technology and management are reshaping modern healthcare. He also breaks down the exact framework he follows before building or acquiring a hospital.
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Instagram: https://www.instagram.com/kimshospitals
About Raj Shamani
Raj Shamani is an Entrepreneur at heart that explains his expertise in Business Content Creation & Public Speaking. He has delivered 200+ speeches in 26+ countries. Besides that, Raj is also an Angel Investor interested in crazy minds who are creating a sensation in the Fintech, FMCG, & passion economy space.




