Revenue Management at Sparsh Nephrocare

Cases
arang Deo, Nithin Nemani, Sourav Singh, Nupur Jain. "Revenue Management at Sparsh Nephrocare", 2019
Abstract:
Discipline: Service Management
Industry: Health care services,Kidney dialysis centers
Length: 23p
Subjects covered: Business model innovation, Business to business marketing, Yield management, Health care delivery, Entrepreneurial management, Marketing, Service management, Customer service
Publication Date: Jan 31, 2019
 
Description: 
The case describes the challenges related to topline enhancement faced by Sparsh Nephrocare, a growing chain of dialysis centers in India. In the early years of its operations (2010-2015), Sparsh grew mainly by opening new centers and focused on cost leadership to maintain profitability. However, as Sparsh's founders, Gaurav Porwal and Saurav Panda, look to raise Series B funding, they are faced with the challenge of how to fuel the next phase of growth at the existing centers. Any option worth investigating must ensure that the company's relationships with various stakeholders in a fragmented ecosystem are not adversely affected. This includes ensuring good outcomes for patients and preserving the autonomy of nephrologists and the importance of the hospitals that house these dialysis centers.

Learning objective:
At the end of this case discussion, students should be able to: 1. Explore and evaluate various avenues for revenue growth in light of the strategic value proposition of the organization and prioritize those that represent win-win opportunities, i.e., where higher revenue does not come at the expense of low quality or poor outcomes. 2. Understand the role of hospitals and specialists in B2B marketing of healthcare services in India and investigate the role of different stakeholders in managing health outcomes in a fragmented value chain. 3. Understand the challenges in capacity planning for chronic health services, where the demand growth comprises of the addition of new patients as well as increased use by existing patients.