Second CMC campus in Andhra Pradesh

Christian Medical College (CMC) is planning to start a second campus in Chitoor, Andhra Pradesh. Aapproximately 600 acres of land transaction for this proposed campus near Chittoor between the Government of Andhra Pradesh and CMC is supposedly completed and operations are expected to start soon.

CMC proposes to set up a super specialty hospital with an educational set up to impart medical education in many areas. (click here for details). This campus is going to be located in Ramapuram and DB Palle villages of Gudipala mandal which are halfway between Chittor town and Naraharipet check-post (intersection of state highway from Katpadi and the national highway from Chennai to Chittoor).

After Apollo Hospital announced a plan to develop Apollo Aragonda Integrated Health Knowledge City in a village called Aragonda (15 KM north of Chittoor town) in Chittoor district, I blogged my thoughts on September 22nd, 2008 arguing that Chennai-Chittoor-Bangalore highway (highway number 4) becoming an exclusive healthcare highway. This news of CMC opening a new campus right on this precise highway couldn’t have validated my thoughts anymore.

Being an alumnus of CMC, I have no doubt to believe that they will do what they are supposed to do to the best of their abilities but I only have a concern that a corporate hospital like Apollo Hospital being so close (less than 25 KM) to this proposed CMC campus, affecting their bottom line. I’ve heard arguments saying that the business models of these two institutes being so distinct, they don’t matter so much (in an obvious reference suggesting Apollo caters to the affluent and CMC caters to the under privileged). Agreed, but what if the customers that you choose to cater doesn’t consider himself/ herself as ‘under privileged’ in terms of their healthcare? Allow me to explain.

Lately, many state governments have become cost conscious and started doing things creatively. In healthcare, governments are paying healthcare premiums for the people below the poverty line (BPL) rather than building and operating new hospitals. In the state of Andhra Pradesh, late Chief Minister Dr. Rajashekar Reddy has a started a health insurance scheme for BPL families called ‘Arogyashree’ with a coverage limit of 2 lakhs rupees/ family.

Here is a situation where the customer decides where he/ she want to be treated. So, unless and until the business models are built to provide more than mere healthcare services, customer’s perception of value for the services rendered would be low and that can affect the bottom line. Coverage of health insurance is only going to increase in the coming days and increasingly it is the customers that get to decide.

Desiring to cater to the underprivileged is noble and laudable but factoring in the ground realities would be being visionary. Have the mindset to serve the underprivileged but provide corporate hospital setting to survive.