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Dr Selvaraj of Kauvery Hospitals on why innovation is just what the doctor ordered


Tamil Nadu stands head and shoulders above other states in India when it comes to healthcare. It has done this by championing public health initiatives, establishing a widespread network of medical facilities, offering affordable healthcare, and actively embracing technological advancements.

Kauvery Hospitals, a multi-specialty hospital chain located in Trichy, Chennai, Salem, Hosur, Tirunelveli, and Bengaluru, has contributed significantly to the state’s healthcare ecosystem and is actively working towards building the next wave of healthtech startups.

At Tamil Nadu Story 2024, YourStory’s platform to empower startups and homegrown brands of Tamil Nadu, Dr. Aravindan Selvaraj, Co-founder and Executive Director, Kauvery Hospitals, sat down with Madanmohan Rao, Research Director, YourStory, for a fireside chat on ‘Booster shot: Catalysing innovation in healthcare’.

Identifying the top trends in healthcare

Selvaraj discussed the changing landscape of healthcare in India, identifying the pandemic as a trigger for change. He said COVID gave the medical community an opportunity to overcome the inherent mistrust people had in modern medicine. 

He discussed the health insurance sector, which has witnessed phenomenal growth in the last few years. Up until recently, he said, there was only one standalone insurer. Today, more are emerging and there has been as rise in private healthcare insurance. 

The next trend Selvaraj identified was that of private equity investments in hospitals. According to a report by Bain & Company, private equity and venture capital investment in India’s health and pharmaceutical sector reached a new record of $5.5 Billion in 2023. He discussed the direct impact of these investments, particularly in aiding hospital chains in setting up multi-speciality hospitals equipped with the latest technology. When Kauvery Hospitals expanded from Trichy to Chennai in 2010, it received private equity funding. It was one of the first deals that involved private enquiry investment in a hospital chain based out of a Tier II city in India. 

Selvaraj also highlighted the digital disruption in Indian healthcare. He said no sector is immune to digital transformation, and government and individual hospitals are investing heavily in digital healthcare. The sector is being reshaped by digital sensitisation and optimisation, but India needs more time before digital technologies can completely transform the market, he said.

Building an innovation mindset in healthcare

Selvaraj revealed that a Turkish entrepreneur inspired him to set up an Innovation Centre in 2019. As one of the first hospitals to build a hub for innovation, Kauvery Hospitals has created a culture and mindset of originality and advancements. 

“Innovation doesn’t need to be large-scale; it can include small critical innovations. You encourage people at the front end for delivering healthcare – from the nurse’s level to the ward boy’s level. We developed a high innovation mindset and culture at Kauvery Hospitals. We already had an innovation ecosystem, mindset, and culture throughout our organisation, so we were the first ones to adapt to COVID challenges,” he said.

Working with healthcare startups

Kauvery Hospitals began evaluating startups through the Innovation Incubation Centre, set up to address the disconnect between healthtech entrepreneurs and their healthcare delivery provider.

Selvaraj said the problem is that healthcare technologists usually work in isolation from other healthcare players in the ecosystem, such as doctors, nurses and patients. They don’t have access to these players, and therefore can’t gauge the impact of their innovations. After years of developing healthcare technology, they have to receive clinical validations, by which point they may have run out of funds or simply burnt out, he said.

In the last five years, Kauvery Hospitals has worked with 250 healthtech startups, guiding them from a very early stage. Startups can access the hospital for clinical validation or to course-correct if the technology fails. They work with doctors and nurses, and are nurtured by the hospital. The group also sets startups up with a non-banking financial corporation, Healthcare Capital, through which it invests in healthtech startups. 

“Kauvery Hospitals is completely involved in healthcare innovation, guiding health tech entrepreneurs and supporting them. To any health tech entrepreneur here, I would like to say that I appreciate your courage. You have to be really brave. Because here you can’t afford to make a mistake. It is a question of life and death,” Selvaraj said.

The benefits of starting small

Kauvery Hospitals had a difficult journey from 1999 to 2012, experiencing slow growth. Once it moved to Chennai, opportunities for growth were much larger. However, Selvaraj credits these difficult years for the hospital’s exceptional growth today. 

“A hospital group of our size normally starts from the metro cities, and then goes to Tier II or Tier III cities. We had an advantage as well. We came from a small town where the market was very sensitive to the cost of healthcare. We learned to master the art of delivering affordable healthcare, even at high end. We are the best at optimising the cost for high-end procedures like robotic or cardiac surgery,” he said.

The group has aggressive expansion plans for the next two years, aiming to go from 2,500 beds to 3,500 beds. It also aims to go public and make its presence felt in healthcare technology, research, academic publications, and community health.





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