Secondary-Care Hospitals for Underserved Peri-Urban Areas
Dr.C.J.Vetrievel pioneered the 50 bed hospital chain concept by starting Be Well Hospitals in 2011. Be Well Hospitals today has 12 multispecialty units, one for each year of existence, and the network is growing. The chain has been very focused on serving peri-urban areas and small towns in Tamil Nadu treating over 6 lakh patients till date with 24 hours preparedness for emergencies. We had a chat with Dr.Vetrievel to understand the processes and pressures of making his business plan a reality and how they have been able to sustain momentum over the years.
Funding the Vision
The vision to provide healthcare to the underserved is one thing, persuading investors to believe in it enough to put their money there, is another. So how did Be Well convince them? “Investors look at four things. Firstly, how the new venture would contribute to society and create an impact. Secondly, what returns they can expect from the business. Thirdly the potential for scale – good returns are possible only when a business has the ability to expand. Lastly and most importantly, they look at the track record and credibility of the founders.
When we narrated the clear need and opportunity for a country like India to have a network of secondary hospitals, they quickly understood and agreed. They did their own research and saw the need for secondary healthcare, which aligned with the solution we were presenting. Once convinced of the impact and the opportunity, they were interested in scale. Our pitch outlined how our model could grow to 500 hospitals with a hospital in every district. After basic research, they agreed this would be possible. When these four boxes were ticked off for us, we were able to secure venture capital funding within the first six months of the launch. Knowing that capital would be the single most important thing to get going, we had prepared and worked this out well in advance,” elaborates Dr.Vetri.
Talent and Training
“To start off any business, the first requirement is of course securing capital. Having that in hand, we found human resources to be one of the main challenges,” says Dr.Vetri. They found it especially difficult in the early days to attract nurses who preferred bigger hospitals. But now people are looking at Be Well Hospitals differently as the hospital offers the experience, exposure and recognition that looks good on their resume. “We faced challenges with other resources too. House keeping staff for instance don’t come trained like they do in the hospitality industry. So we took the ownership of training them to match hospital industry standards complete with SOPs. It’s still a challenge to ensure we get people who are willing to learn and get trained. Being a 24-hour hospital, it’s tougher because each SOP has to be followed by every employee. It takes persistence and focus, and plenty of continuous training to keep it going while ensuring growth.”
To retain and motivate employees, Be Well Hospitals has also introduced several employee-first initiatives. “We celebrate birthdays of all employees, recognize the Best Employee of the Month with a cash reward and organize fun activities on Fridays to help staff de-stress. The annual picnic encourages team bonding,” shares Dr.Vetri.
Experience as a Pioneer
Large hospitals have huge infrastructure, low efficiency and too much is spent on the ‘luxury factor’ which would naturally have to be recovered from the patients. Aware of this, Be Well keeps the hospital size manageable. “When making any investment in equipment or service our only question has been, will it deliver quality healthcare to our patients?” People prefer going to bigger, more established private hospitals for all healthcare problems though 60-70% of healthcare issues can be handled in hospitals such as Be Well. Conveying this to the public has not been easy for them. “Only when we get to about 25 hospitals will a huge advertising spend be justified, and we can distribute the cost across the various units. This will help reaching our aim of making Be Well people’s first port of call. And we are getting there,” says a confident Dr.Vetri.
Tapping a Need
Currently Be Well Hospitals is present in Erode, Chennai, Cuddalore, Nagercoil, Pondicherry, Puducherry and Tuticorin. “Our focus is peri-urban areas and we work with a multinational real estate agency to help identify a location that’s away from the city but not too remote. It should be accessible by public transport and should host a sizeable population that makes it viable for our investment. An upcoming part of any city works for us. Though we have hospitals in Chennai at Ambattur, Poonamallee and Selaiyur, apart from prime locations like Anna Nagar, Kilpauk and T.Nagar, the developing areas around the city can easily accommodate and support 10 more hospitals,” he explains.
High Points of the Journey
“The success of hospitals like ours is judged by the occupancy rate. Some of our mature hospitals show an occupancy rate of 60% which is very good. The newer ones are slowly picking up. That’s very fulfilling for us,” says Dr.Vetri. But the real highs are when their patients leave happy and give testimonials to that effect. “That’s the reason for our existence and our journey seems validated by their satisfaction. We continuously listen to our patients and keep improving our services based on their needs. For instance, we introduced a colouring book and a mobile library to make hospital stays more comfortable,” he shares.
Be Well Hospitals also engage with the local community by holding health camps every month, one in the hospital and one outside. Basic investigations and consultations are offered free and some for a nominal, subsidized cost.
Guideposts for Aspiring Entrepreneurs
Dr.Vetri strongly believes that financial discipline and prudence is essential for entrepreneurs. Maintaining the books right, corporate governance and adhering to statutory norms is to be followed from day one, according to him. “If they don’t pay attention, it could prove very costly. A proper accounting and auditing system is fundamental to building a large organization. It’s important to both, employees and investors. The former because you need to pay salaries on time and the latter as it helps build your credibility and trust,” he speaks from experience. He also thinks it’s important to have strong willpower and a determination to see things through. “We’ve been through tough times, pre and post Covid when our occupancy was low. What saw us through was staying motivated and communicating to the organization that it’s a passing cloud. Of course a sensible outlook with work-life balance is essential in the long run!” he concludes.
Future Plans
Be Well Hospitals’ fundamentals are very strong and their experience has grown over the past 12 years. They now have the expertise to identify locations, establish hospitals and operate them. “The key challenge as always is capital. We expect to set up at least 10 hospitals in the next 2 to 3 years and achieving the target of 50 hospitals in the next 5 years in Tamil Nadu, is a real possibility!” signs off Dr.Vetri confidently.
