In the realm of cost containment, IndiGo stands as a paragon, with co-founder Rahul Bhatia exemplifying tight-fisted leadership by constantly questioning, “What other cost can we remove without losing a single customer?” This relentless focus on efficiency is evident in IndiGo’s smart route planning and fleet management, which sees it operating 94 aircraft to 38 destinations, compared to SpiceJet’s 35 aircraft serving 43 destinations. IndiGo’s operational strategies, such as meticulous vendor contracts, maintaining a young fleet, and the lowest manpower ratio in the industry, significantly reduce costs. Similarly, its focus on fuel efficiency and pilot guidelines enhances savings. This cost-conscious mindset, coupled with a commitment to punctuality and a simplified business model, has made IndiGo a leader in on-time performance and customer loyalty.

Drawing parallels to healthcare, Aravind Eye Hospitals mirror IndiGo’s efficiency despite offering free care to nearly half of its patients. By streamlining operations and setting up in-house manufacturing for significant savings, Aravind Eye Hospitals ensure sustainability and high-quality care. Hospitals could learn from such models, moving away from owning real estate to leasing, as practiced by Global Hospitals and Rainbow Children’s Hospitals. Adopting aggressive growth strategies, like those of Dr. Devi Shetty at Narayana Health, can yield substantial equipment cost savings. Additionally, improving resource productivity, such as optimizing operation theatre usage and reducing physician costs through salaried models or outsourcing, can lead to significant savings.

Just as IndiGo has become synonymous with punctuality, hospitals can focus on key differentiators like infection control. Implementing stringent protocols and leveraging programs like BD’s SAFE-I can drastically reduce infection rates. Simplifying processes and enhancing patient experience, akin to IndiGo’s streamlined operations and customer-centric approach, can transform hospital management. As Columbia Asia Hospitals and Wockhardt Hospitals demonstrate, a stable leadership and a transparent, performance-oriented culture can drive long-term success. Ultimately, emulating IndiGo’s cost-efficiency, focus on core strengths, and uncompromising quality can revolutionize hospital operations and patient care.

Ratan Jalan writes about the trends, challenges, role of PPP, benefits for the end-customer and also some of the grossly neglected issues in Indian healthcare.
The current restricted healthcare delivery models need to focus on preventive aspects in healthcare and create functional progressive referral systems managing bulk of healthcare at the front or the primary healthcare level, for better healthcare delivery models.