Transformation Realized: Building a seamless healthcare delivery ecosystem

3 minute read 28 Jun 2022
By EY India

Multidisciplinary professional services organization

3 minute read 28 Jun 2022

Two years ago, Sahyadri Hospitals joined hands with Everstone Capital to become one of the leading healthcare providers in Maharashtra.

With investments over US$1.2 billion across 7 companies and 4 investment themes, Everstone has been bullish on the healthcare sector in India and South-East Asia. The private equity firm was looking to invest in delivering quality affordable when it backed Sahyadri, Maharashtra’s leading quaternary care hospital chain with a highly scalable offering, which combined high-quality care and outcomes at a very competitive price.

A big reason we zeroed in on Maharashtra was driven by the sizeable and growing addressable market with 130 million people living in the state. This provided very strong healthcare demand drivers for quality healthcare services.
Puncham Mukim
MD, Everstone Capital Advisors

Within Maharashtra, Mumbai - Pune corridor presented a unique opportunity with significant latent healthcare demand and constrained supply. Sahyadri presented a fantastic opportunity with a footprint that provided healthcare access to approximately 20 million people in Pune, Nashik, and Karad. With its clinical capabilities and good executive track record, Sahyadri was the apt platform to create the largest hospital network in Maharashtra.

With the support of Everstone, Sahyadri started work on quickly expanding by adding approximately 200 beds in the last 2-3 years to the existing facilities, improving physical infrastructure for better patient experience, the addition of high-end medical technology for best-in-class care, and continuum of care in a holistic manner by adding diagnostics platform.

Another focus area was to widen the footprint in Western and Central India and bring in a professional management team to work under the guidance of promoters. The hospital chain also brought in new medical talent and created centres of excellence for quaternary care. These initiatives were directed towards revamping Sahyadri by improving the overall patient experience along with adding digital capabilities and adopting a ‘Culture of Care’. Today, Sahyadri has a hub and spoke model with multiple facilities complementing each other and each positioned uniquely to serve all segments of the population.

We believe the Culture of Care comes from happy employees. We took complete care of our employees and their families during the pandemic, and this percolates right down to the patients and the way they are taken care of.
Abrarali Dalal
CEO, Sahyadri Hospitals

Sahyadri’s workhorse delivery model underpinned by a sharp focus on operational excellence had defined its success, making it one of the most eligible candidates for investment in this region. EY’s diligence revealed a very strong brand pull in and around the geographies where Sahyadri operated, visionary leadership of the promoters, a deeply embedded culture for clinical excellence, and a capable management team committed to continuous improvement.

Technology is an area like medical science will really help in predicting the unpredictable with the power of data. This can really be synthesized, collated, and analyzed for sharper insights into advancement in products, services, and therapies.
Kaivaan Movdawalla
EY India Healthcare Sector Leader and Partner

Deploying technology to create long-term value

EY worked with the investors (Everstone) and the management (Sahyadri) on the value creation plan with a dedicated project management office to drive various strategic and operational initiatives over the last 2.5 years and deliver a comprehensive transformation program across the investment lifecycle. This included the preparation of concise value-creating objectives, identification of value levers, and an optimization plan followed by a detailed implementation plan to ensure timely and effective realization.

One of our key focus areas was also to design and roll out a technology platform (integrated HMIS and ERP), the launch of patient and doctor apps for seamless engagement, cyber services-related assistance while ensuring that Sahyadri gains cost advantage through operational efficiency.

Realising Sahyadri was focused on providing healthcare services on a workhorse model, EY teamed up with the investors on optimizing cost through operational efficiency across all direct and indirect cost lines items like procurement, consumption, HR, among others. All overheads were analyzed, reviewed, and addressed for structural cost take-outs, and to provide quality services in the region at optimal cost.

Summary

A trusted end-to-end investment lifecycle collaboration, deploying technology, and keeping human at the centre are key to realize transformation.

This is part of the Transformation Realized - Powered by EY series currently being hosted on CNBC, wherein we feature stories of business transformation led by India's most inspiring business leaders who have created value by placing human@center, deploying technology@speed and innovation@scale.

About this article

By EY India

Multidisciplinary professional services organization