NephroPlus – Best Medical Service Outsourcer WINNER– 2017

Nephrocare Health Services Pvt Ltd (NephroPlus) is the largest network of dialysis centres in India with 97 operations centres (as on Jan 31, 2017) spread across 63 cities in 16 Indian states. Some of India’s top hospitals including Max Group of Hospitals, Jehangir Hospital, Medica Hospitals and Sahyadri Hospitals have partnered with us to provide quality dialysis service to their patients. At NephroPlus, our topmost priority is to provide quality clinical care and to ensure an incident- free dialysis session. We strive to provide the highest quality dialysis in an affordable setting. All our teammates undergo hours of rigorous training and certification before they are inducted to handle patients, who are referred to as guests in our ecosystem. In FY16, NephroPlus clocked ~USD 10 MM in revenues and is en route to cross USD 15MM in FY17. NephroPlus currently has a staff strength of more than 1,500 employees.

It is essential that you include some revenue, patient and staff numbers here. Please give the number of locations covered and describe them. (IE 10 regional hospitals with a total of 3,000 beds).

Hospitals outsource the dialysis unit to NephroPlus. NephroPlus operates and controls every aspect of the dialysis unit including staff, technicians and consumables. The Hospitals only manage space and utilities, while all operational and quality protocols and processes are managed exclusively by NephroPlus.

As of 31st Jan 2017, NephroPlus has ~73 centres with Private Hospitals and ~17 centres with Government Hospitals with 920+ beds under operation. Nephroplus is currently doing 2000+ dialysis sessions per day and serving more than 7000 active patients. 15 hospitals associated with us are NABH (National Accreditation Board for Hospitals) accredited, and are, therefore, certified to be amongst the best quality hospitals in the country. Some of India’s top hospitals including Max Group of Hospitals, Jehangir Hospital, Medica Hospitals and Sahyadri Hospitals have partnered with us to provide quality dialysis service to their patients

The clients are of 2 major categories: Private Hospitals & Government Hospitals

Contract durations are usually 8-12 years on an average. Few sample centres with details are given below:
1. Nightingale Hospital, Santosh Nagar Hyderabad: Started in Jan’2012 with an 8-year contract. Has grown from revenue of ~USD 29K in FY 13 ~USD 230K in FY17 Currently, the centre has more than 90 active guests and is doing more than 1000 sessions per month
2. Lokmanya Hospital, Chinchwad, Pune: Started in Mar’14 with a 9-year contract. Has grown from revenue of ~USD 30K per in FY 13 to ~USD150K in FY17. Currently, the centre has more than 55 active patients and is doing more than 500 sessions per month
3. Max Healthcare, Dehradun: Started in June’13 with a 5-year contract. Has grown in revenue from USD 40K in FY13 to USD 220K in FY17. Currently, the centre has more than 100 active patients and is doing more than 800 sessions per month

What savings have been attained by the client? How has the new service improved things for patients/residents/consumers or for medical or care staff?

Sample of the savings obtained by clients / private hospitals:
Jehangir Hospital, Pune:
Recorded over USD 27K of additional profit per annum along with 2.5x growth in revenue
Before Nephroplus:
Regular Dialysis Sessions: 550
Revenues: USD 127K per year
OP Dialysis Profit: USD 9K per year
Lab Compliance: 50% compliance
Other Areas:
– Only paper based trackers
– No electronic data collection
– No accreditation
– Unionized and underqualified staff
After NephroPlus (18 months post transition):
Regular Dialysis Sessions: 1200
Revenues: USD 309K per year
OP Dialysis Profit: USD 18K per year
Lab Compliance: 90% compliance
Other Improvement areas
– Paper and real-time electronic data collection
– NABH accreditation and ready for paperless as well
– Disciplined and high quality NephroPlus staff
Pushpanjali Hospital, Agra:
Recorded over USD 38K additional profit per annum along with 3x growth in revenues
Before NephroPlus:
Patients 40
Regular Dialysis Sessions 270
Revenues USD 87K per year
OP Dialysis Profit USD 7K per year
Pharmacy Nil
Other Areas:
– Employment model for Nephrologists
– Non-Qualified staff
– No Record Keeping
After NephroPlus (18 months post transition)
Patients: 110
Regular Dialysis Sessions: 750
Revenues: USD 270K
OP Dialysis Profit: USD 45K per year
Pharmacy: USD 300 per year per patient
Other Improvements:
– Co-ownership model with 5% investment
– BONENT certified staff leading to higher guest satisfaction

Cost Savings for Hospitals partnered with NephroPlus

Dialysis Centres are usually loss making units for Multi-Specialty Hospitals. These hospitals lack the right scale and expertise to make dialysis profitable, and can only afford a sub-optimal focus on processes since dialysis a negligible portion (0.5-2%) of their total revenues. However, hospitals need to operate dialysis units to be able to offer all healthcare services under one roof.

NephroPlus adds value to these hospitals by taking over their Dialysis units. With expertise, focus on processes and sourcing power gained through scale, NephroPlus is able to reduce the overall cost of dialysis and helps hospitals see profits from the centres.
Our Hospital Partners have seen cost reduction of more than 10-15% within 18 months of operations by NephroPlus. Over years of operation, combined with our focus on quality care for the guests and processes, we create costs savings of 20-30% for the Dialysis units.