The Economics of Eye Care
Aravind Eye Care's Model
How Dr G. Venkataswamy founded Aravind Eye Hospital in Madurai in 1976 and used assembly-line efficiency and cross-subsidies to give free surgery to the poor.
Aravind Eye Care System is a famous model.
Founding
Dr G. Venkataswamy (Dr V) founded Aravind in Madurai in 1976 with 11 beds, after retiring.
Assembly line
Inspired partly by McDonald’s, Aravind standardised processes:
- Surgeons operate on one patient while the next is prepared.
- Mid-level ophthalmic assistants handle tasks.
Productivity
Aravind surgeons perform far more surgeries per year than the global average.
Cross-subsidy
Paying patients subsidise free or low-cost surgery for the poor, while Aravind stays financially sustainable.
Quality
Outcomes are comparable to rich-country hospitals.
Scale
Aravind treats millions of patients a year across its hospitals.
A paying patient chooses a private room while a poor patient gets the same surgery free in a general ward.
Aravind uses cross-subsidies.
- Dr V founded Aravind in 1976.
- It uses assembly-line efficiency.
- Paying patients subsidise free care.
- Quality matches global standards.
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