Budget Review 2011-12
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Transcript of Budget Review 2011-12
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Budget Review 2011-12
Potential Growth Engine- Medical Loans
March 21, 2011
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Copyright 2010 Innosight LLC 2
Middle of the pyramid has the ability to payfor the medical exigencies in installments
Upper class19 million
Middle Class203 million, will be
430 million by2015
Non afforders810 million, will reduceto 350 million by 2015
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Rapidly expanding middle classhas USD 1000+ annual incomeOf the house hold health careexpenditure 74% is out-of-pocketNeed for financing poorly served20 million people fall below povertyline due to indebtedness arisingfrom health care needsA rental model could save these
families
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Copyright 2010 Innosight LLC 3
Provide Affordability Solutions to the Middle of the PyramidTo Meet Medical Exigencies
Objective #3:
Establish viability of an independentMedical Finance Company
Approach #1:
Participate in the Red SeaFinancing Initiative
Demonstrate a scalable model
Finance for Other Medical
Exigencies
Approach #2:
Work with Medtronic to develop aCaptive Medical Finance Company
cardiaccare
Finance for AllMedical Needs
Finance for Cardiac Care
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Copyright 2010 Innosight LLC 4
Progress on the Pilots GLP/Tiger Team
Pilots at Pune & Solapur 2 loans disbursed, both performing Tight norms for lending Pilot abandoned by Medtronic
Red Sea initiative through Innosight2 of the 3 Pilots planned in progress
Credit norms lightened for quick approval5 loans disbursedFuture outlook promising20 more Pilots planned for 2011-12
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Copyright 2010 Innosight LLC 5
Screening process of patients receiving financial assistance
Cardiologist Patient
Initial Patient Consultation
CIMS
Office
Patient is Screened for Financing
Patient FinanceCounselor
Financing approved anddevice implanted
Patient
Doctor prescribestreatment. If thepatient cannot affordthe treatment, thephysician introducesfinancing programand refers them toHHFA FinanceCounselors
Finance Counselor explains the financingoptions and screensthe patient through aseries of simplebehavioral questionsand a brief creditcheck
Within 24 hours theFinance Counselor will approve or decline the financing,and if approved thepatient will receivethe implant andappropriate financepackage
Device
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Copyright 2010 Innosight LLC 6
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Copyright 2010 Innosight LLC 7
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Copyright 2010 Innosight LLC 8
Project Tracker - Medical Loans
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Scheduled Area of ConcernCompleted W I P
Activities Task Owner Apr 30 May 31 Jun 30 Jul 31 Aug 31 Sep 30Admin
Develop detailed project monitoring templateJose
Identify atleast 1 Partner for part of Tier 1 highrisk capital Team
Identify atleast 1 Partner for part of Tier 2 lowrisk capital TeamWrite articles based on success stories forpublishing JoseAchieve readiness for launch of stand alonemedical loan company Jose
Identify target customer, competition, productofferings, differentiators, launch strategy,distribution channels, etc
Team
Milestone- disburse 50 loans, 45+ performing Jose
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Copyright 2010 Innosight LLC 9
Quick Estimates for 2011-12
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2011 2012 2015 2020 2022
Turnover 1.25 5 75 500 1000Surplus 1 2 3.75 30 60
Salary 0.96 1.5 2.4 5 10Net 0.04 0.5 1.35 25 50
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Copyright 2010 Innosight LLC 11
Progress on Consulting with Medtronic
1. Design a Patient Financing Program (3 months) Rs 10 lacs
2. Handhold the Financing Program(3 months) Rs 4.5 lacs
3. Modify Financing Program to Fit Red Sea(Rs 7 lacs Rs 2.8 lacs *
4. Implement & Administer Financing Program for Red Sea(3 locations for 6 months) Rs 25 lacs**
5. Estimate for new Pilots(25 to 50 lacs Rs 35 lacs
* Rest merged with item no 4** 8 lacs billed upt o March 2011
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Copyright 2010 Innosight LLC 12
Budget Estimates Submitted to Medtronic
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April 11 May 11 June 11 July 11 Aug 11 Sept 11 Oct 11 Nov 11 Dec 11 Jan 12 Feb 12 M
No of locations (cumulative) 3 4 6 8 9 11 13 14 16 18 19 21
Partner level resource 1 1 1 1 1 1 1 1 1 1 1 1Manager level resource 0 1 1 1 2 2 2 3 3 3 4 4Junior level resource 0 1 1 1 1 1 1 1 1 1 1 1
A 300000 300000 360000 480000 600000 640000 720000 800000 830000 890000 950000 97
B 0 60000 120000 120000 40000 80000 80000 30000 60000 60000 20000 4000
A+B=C Monthly professional fees 300000 360000 480000 600000 640000 720000 800000 830000 890000 950000 970
133333 100000 200000 200000 75000 150000 150000 75000 150000 150000 75000 150
Furniture, equipment, display, etc. 210000 100000 200000 200000 100000 200000 200000 100000 200000 200000 1000
PAMAC staff, conveyance, CIBIL, Fraud contro 84000 240000 360000 480000 540000 660000 780000 840000 960000 1080000
Travel & Living will be at actuals
Total monthly expenses 800000 1240000 1480000 1355000 1730000 1930000 1845000 2200000 2380000 2285000
Monthly professional fee based on previous
month's no of locations(Rs)Incremental professional fee for incrementallocations(Rs)
One time cost of implementation (3 visits,interviews, training, etc.)
Estimates for 2011-12
