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Max Vision Eye Care Centre*

CASE STUDY, ENTREPRENEURSHIP & STARTUPS
ET Cases - FLAME, 14 pages
AUTHOR(S) : Dr. Manisha Saxena (Prof. Subrata Kumar Nandi, Faculty Members at IBS Business School, Pune), Archana Deendayalu (Freelancer, Pune)

Case Preview

Max Vision Eye Care Centre

 

On a scorching summer afternoon in May, Dr. Ankur Sinha (Dr.Ankur) stood in front of a under construction building in Vaishali Nagar, Jaipur. As the construction  workers had gone for lunch and there was not a single soul around. Dr.Ankur looked up with pride at the partially built as it was the outcome of a long cherished dream of owning and managing a hospital finally coming true. Soon the construction would complete and the hospital would be operational.

The last decade had been tumultuous for him and his friend and partner Dr. Ajay Pal Singh Jhinjha (Dr.Ajay), whom he had first met in 2001 at AIIMS. Events had  moved at quite a fast pace in the last 5 years. Both the doctors had successfully established their credentials during this period and had chosen Jaipur as their  chosen location. The eye care market in Jaipur was becoming increasingly competitive, with several large-and smallsized eye hospitals being set up in the last few years.

Dr.Ankur was thinking of several possible scenarios when suddenly his thoughts were interrupted by the sudden resumption of work at the site, as the workers returned from their lunch break…

Jaipur, the Pink City, a popular destination for both foreign and domestic tourists known for its forts, palaces and temples, the city has over the last few years rapidly  emerged as a business hub, and established itself for its marbles, precious and semi-precious stones, and jewellery.1 Dr. Ajay and Dr. Ankur, two medical practitioners trained at the prestigious All India Institute of Medical Sciences (AIIMS) decided to sow the seeds of their dream in Jaipur, in the form of the Max Vision Eye Care Center (MVECC), a multi-specialty eye care center.............

The Genesis

It was on a hot summer morning in 2001, among the long queue of people at the iconic All India Institute of Medical Sciences (AIIMS) in South Delhi, with the hope of making it to this prestigious institute for their post graduate fellowship were two young doctors from Rajasthan – Dr. Ankur Sinha (Dr. Ankur) and Dr. Ajay Pal Singh Jhinja (Dr. Ajay). It had always been their dream to join AIIMS. While waiting for their turns for the interview, the candidates tried to strike conversations with others. Ajay and Ankur, while getting introduced to each other, came to realize that both of them were from Rajasthan. They immediately struck a friendship............

The Early Years

Dr. Ankur’s tenure at AIIMS concluded by 2006, while Dr. Ajay yet to complete his tenure. Thereafter, Dr. Ankur joined Santokba Durlabhji Memorial Hospital at Jaipur as a Consultant, and worked there for about one year. He was well supported by the Head of the Department, Dr Siddarth Cosnsul who wanted to upgrade and grow the department and needed well trained young doctors. However, constantly seeking the approval of the higher authorities for day-to-day issues became a nightmare.............

Birth of MVECC (2009)

Dr. Ankur approached many multispecialty and eye hospitals, but did not find any good work opportunities. Multispecialty hospitals wanted them to invest and pay the rent and electricity bills of the hospital along with profit sharing. On consultation with their friends and Chartered Accountants (CAs) they decided on a different course of action as opposed to the previous model that was inherently exploitative. They already had endured bitter experience of association with other hospitals............

MVECC Today

MVECC offers most advanced retina, squint and glaucoma surgeries done under local or general anesthesia. With the advancement of technology and latest technique/methods of surgeries, it is possible to discharge the patient within 4-5 hours after the surgery. Some of the complex treatments offered by MVECC include sutureless vitreo-retina surgeries, minimally invasive squint surgery, advanced glaucoma surgery with shunt and valve implantation.............

Challenges

Although the eye care industry both worldwide and in India has significant potential (Exhibit VIII), the ground realities in India are very different. While there is a demand for eye care services, MVECC realized that most of its potential customers did not have the capacity to pay. With huge investments in equipments, it did not make economic sense to meet the requirements of this segment. Others too sought lower cost medical options.............

The Way Forward

The Indian healthcare industry is witnessing several changes. India’s healthcare spending is growing at a healthy CAGR of approximately 14 % from 5.5 % of the GDP in 2009 to 8 % in 201223 because of the rise in disposable income; increasing patient awareness due to higher literacy rates; and availability of more providers. A combination of demographic (Increase in Population, Shift in demographics- 60 % of the population in the younger age bracket.............

Assignment Questions

I. What were and are the various internal and external challenges our protagonists faced and are facing?
II. What will be your suggestions to the two doctors to help them shift the hospital from its establishment phase to its growth stage?
III. .............

Exhibits

Exhibit I: Jaipur, Benefits of a Metro at the Costs of a Non-Metro

Exhibit II: Location of MVECC

Exhibit III: About Dr Ankur Sinha & Dr. Ajay Pal Singh Jhinja

Exhibit IV: MVECC Promotional Material

Exhibit V: Schedule of Charges (as in 2014) Investigation and Consultation Charges

Exhibit VI: Media Coverage of Complicated Cases Performed

Exhibit VII: Facilities/Services at MVECC

Exhibit VIII: Eye Care Scenario

Exhibit IX: List of 10 Best Eye Hospitals in India

Teaching Note Preview

Max Vision Eye Care Centre

 

Synopsis

The case study discusses the genesis of Max Vision Eye Center, a specialty eye care hospital started by two young doctors Dr. Ankur Sinha and Dr. Ajay Jhinja. Having established themselves as one of the recognized players in the eye care market in Jaipur, and having taken the first step towards creating adequate infrastructure for their business, the promoters are typically faced with the challenge of charting their growth path in the coming years.

The setting up of the organization was fortuitous, as both the founders were pushed into setting up the organization by their life circumstances. However, their  decision so far had proved to be a blessing in disguise. Finance and finding the right work force for their hospital set up were proving to be the major areas of challenge for the firm. The field of medicine, particularly in area of surgery, has been witnessing significant growth peppered with frequent innovations. Competition often came from new and advanced techniques. This puts a constant pressure to learn and simultaneously perform the latest surgeries and leveraging from advances in information technology. They were aware that incorporation of the latest technology is no longer an option but a compulsion.

The Max Vision Eye Care Center (MVECC) case provides an opportunity for students to discuss the various aspects of a new business, like entrepreneurship  qualities needed for a venture creation, the charting of future direction, managing limited resources and facing competition. In the case of MVECC, the two doctors had the right qualifications and exposure, but the fact that the entire eye care industry was undergoing rapid changes in terms of technology and completion, throws different challenges to these doctors. The students can approach this case from the point of view of a new business creation and growth starting from searching-screening-planning/financing to set up, startup and ongoing operations and growth.............

Case Positioning and Setting

The case can be used in courses on health care management as well as in courses on entrepreneurship. In general management the case may score in providing insights in the role played by different functional areas of management in any organization (not just healthcare) especially in a new venture (here a hospital).

Expected Learning Outcomes

The circumstances that the doctors faced and are facing, towards becoming true entrepreneurs and their responses to them is a learning experience in itself. The following learning outcomes will make this case an interesting read:

  • • Understand and appreciate the dilemmas of new establishments like hospital
  • • Decipher that although financial constraints are the foremost issues faced by start-ups, every other functional area of management needs a fair treatment
  • • Assess and appreciate the different management styles/approaches as exhibited by the two of the Founder-doctors

 

Assignment Questions

  • I. What are the various internal and external challenges facing MVECC?
  • II. What will be your suggestions to the two doctors to help move the hospital from its establishment phase to its growth stage?
  • III. ........................

 

Suggested Reading

  • • Shivganesh Bhargava, Entrepreneurial Management, Response Books, New Delhi, 2008
  • • David H.Holt, Entrepreneurship: New Venture Creation, Prentice-Hall of India, New Delhi, 2000
  • • Eric A.Morse and Ronald K. Mitchell, Cases in Entrepreneurship: The Venture Creation Process, Sage, New Delhi, 2007
  • • Rajeev Roy, Entrepreneurship, Oxford University Press, New Delhi, 2008

 

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Abstract


The case study discusses the genesis of Max Vision Eye Center, a specialty eye care hospital started by two young doctors Dr. Ankur Sinha and Dr. Ajay Jhinja. Having established themselves as one of the recognized players in the eye care market in Jaipur, and having taken the first step towards creating adequate infrastructure for their business, the promoters are typically faced with the challenge of charting their growth path in the coming years.

The setting up of the organization was fortuitous, as both the founders were pushed into setting up the organization by their life circumstances. However, their decision so far had proved to be a blessing in disguise. Finance and finding the right work force for their hospital set up were proving to be the major areas of challenge for the firm. The field of medicine, particularly in area of surgery, has been witnessing significant growth peppered with frequent innovations. Competition often came from new and advanced techniques. This puts a constant pressure to learn and simultaneously perform the latest surgeries and leveraging from advances in information technology. They were aware that incorporation of the latest technology is no longer an option but a compulsion.

The Max Vision Eye Care Center (MVECC) case provides an opportunity for students to discuss the various aspects of a new business, like entrepreneurship qualities needed for a venture creation, the charting of future direction, managing limited resources and facing competition. In the case of MVECC, the two doctors had the right qualifications and exposure, but the fact that the entire eye care industry was undergoing rapid changes in terms of technology and completion, throws different challenges to these doctors. The students can approach this case from the point of view of a new business creation and growth starting from searching-screening- planning/ financing to set up, startup and ongoing operations and growth.

With hardly 5 years of establishment to its credit, it is now looking for opportunities to grow from its embryonic phase in its life cycle stage. It needs to look for ways to expand after consolidation phase under the vision of its Co-founders Dr. Ankur & Dr. Ajay.

The case discusses the challenges faced by these doctors, not only at every stage of their venture creation but also prior to and post the same. This will give the students valuable inputs to discuss what makes a good entrepreneur and what he needs to do to deal with the changing needs of patients, technology and competition.



Pedagogical Objectives

  • To understand and appreciate the dilemmas of new establishments like hospital
  • To decipher that although financial constraints are the foremost issues faced by start-ups, every other functional area of management needs a fair treatment
  • To assess and appreciate the different management styles/approaches as exhibited by the two of the founder-doctors

Case Positioning and Setting

The case can be used in courses on health care management as well as in courses on entrepreneurship. In general management the case may score in providing insights in the role played by different functional areas of management in any organization (not just healthcare) especially in a new venture (here a hospital).



*FLAME CASE CONFERENCE 2015

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