LifeSpring’s small hospitals (20-25 beds) fill the void of high quality maternal and child health care at affordable rates for India’s lower income population. LifeSpring is a 50-50 equity partnership between HLL Lifecare Ltd. (HLL), a mini Ratna enterprise under India’s Ministry of Health and Family Welfare and the Acumen Fund, a U.S.-based nonprofit global venture philanthropy fund.
LifeSpring has taken on the challenge to provide innovative healthcare solutions for women and children at its newly designed facilities. Most importantly, LifeSpring provides high quality services at rates women can afford.
LifeSpring aims to serve as a model for providing high quality maternal and child health services to the poor in India and worldwide. Its hospitals primarily use midwives to provide maternity care, allowing one doctor to oversee more patients by focusing on cases that specifically require a doctor’s attention. This model has allowed LifeSpring to charge between 30 and 50 percent of the prevailing market rates. The price of a normal delivery is approximately USD $40, compared to the standard $200. With 80 percent of all healthcare expenditures in India being out-of-pocket, LifeSpring hospitals significantly lessen the burden of rising health costs on the nation’s low-income communities, helping to reduce poverty.
Lifespring Hospitals’ services include: antenatal care, postnatal care, deliveries (normal and caesarean), and family planning services. LifeSpring also provides pediatric care, including immunizations, diagnostic services, a pharmacy and health care education to the communities in which they are located. To keep prices low, the hospital maintains low operating costs and has implemented a tiered pricing system where those with the ability to pay subsidize care for the poor.
In early 2008, LifeSpring transformed into a private company, driving its efforts to open five new hospitals in that year and adding another four hospitals in 2009. By 2012, LifeSpring aims to have nearly 150 hospitals. LifeSpring’s flagship hospital has a 52% market share of all the births in that area. By 2015, an estimated 82,000 women will benefit from LifeSpring’s services. LifeSpring’s current locations include Bowenpally, Chilkalaguda, Boduppal, Moula Ali (Hyderabad), Mallapur (Hyderabad), Nellore, Vanasthalipuram, Vijayawada, and Rajahmundry.
LifeSpring’s first hospital became operationally profitable in 18 months. Based on the performance of this initial proof-of-concept pilot, the chain's business model is such that all hospitals are designed to become operationally profitable in 18 to 24 months.
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