Pristyn Care, founded in 2018 by Harsimarbir Singh, Dr. Vaibhav Kapoor, and Dr. Garima Sawhney, has rapidly emerged as a significant player in India’s healthcare sector. Specializing in elective surgeries, the company has developed an innovative, asset-light business model that emphasizes patient-centric care and operational efficiency. This article delves into Pristyn Care’s business model, exploring how the company generates revenue and sustains its growth trajectory.
Asset-Light Business Model
Pristyn Care operates on an asset-light model, akin to strategies employed by companies like OYO in the hospitality industry. Instead of investing heavily in building and maintaining its own hospitals, Pristyn Care partners with existing hospitals and clinics, utilizing their underused infrastructure to perform surgeries. This approach allows the company to scale rapidly without the significant capital expenditures associated with traditional hospital operations.
Revenue Streams
- Surgical Procedures: The primary revenue source for Pristyn Care is the fees charged for surgical procedures. The company specializes in minimally invasive surgeries across various specialties, including proctology, urology, gynecology, ENT, and vascular surgeries. By leveraging partnerships with over 700 hospitals and 200 clinics, Pristyn Care ensures a broad geographic reach and accessibility for patients.
- Healthcare Services: In addition to surgical procedures, Pristyn Care offers comprehensive healthcare services, encompassing pre-operative consultations, diagnostics, and post-operative care. These services are designed to provide a seamless patient experience, enhancing satisfaction and fostering loyalty.
- Sale of Medical Products: The company has diversified its revenue streams by venturing into the sale of medical health products. This includes offering medical consumables and health-related products to patients, thereby adding an additional layer to its income sources.
- Advertising Services: Pristyn Care also generates revenue through advertising services, collaborating with pharmaceutical companies and other healthcare providers to promote relevant products and services to its patient base. This not only provides value to partners but also enhances the range of options available to patients.
Financial Performance
Pristyn Care has demonstrated impressive financial growth since its inception. In the fiscal year ending March 2023 (FY23), the company reported an operating income of ₹453 crore, a 44.7% increase from ₹313 crore in FY22. This growth was primarily driven by healthcare services, which accounted for 75% of the total operating revenue, amounting to ₹338 crore. The remaining revenue was generated from the sale of medical health products and advertising services.
Despite the significant revenue growth, the company reported a total expenditure of ₹877 crore in FY23, up from ₹616 crore in FY22. Major expenses included advertising and sales promotions (₹220 crore) and professional fees to doctors and surgery costs (₹215 crore). Consequently, Pristyn Care reported a loss of ₹383 crore in FY23.
Patient-Centric Approach
A cornerstone of Pristyn Care’s business model is its patient-centric approach. The company offers end-to-end services, managing the entire surgical journey from the initial consultation to post-operative care. This includes assistance with insurance claims, hospital admission paperwork, transportation, and follow-up consultations. By handling these aspects, Pristyn Care alleviates the administrative burden on patients, allowing them to focus solely on recovery.
Technology Integration
Pristyn Care leverages technology to enhance operational efficiency and patient experience. The company has developed a comprehensive digital platform accessible via its website and mobile application, enabling patients to schedule appointments, consult with doctors online, access medical records, and receive post-operative care instructions. Additionally, the integration of telemedicine facilitates remote consultations, broadening access to healthcare services, especially in underserved areas.
Challenges and Future Outlook
Despite its rapid growth, Pristyn Care faces several challenges. The company has encountered scrutiny over its aggressive expansion strategies, with reports of high employee attrition and concerns regarding the pressure on doctors to convert consultations into surgical procedures. Additionally, the company has faced financial challenges, leading to cost-cutting measures and layoffs.
Looking ahead, Pristyn Care aims to achieve EBITDA profitability by FY25. The company is focusing on optimizing marketing expenditures and personnel costs to improve margins. Furthermore, Pristyn Care is expanding its service offerings, including the introduction of new surgical categories such as dental procedures, knee replacements, and weight loss surgeries. The company has also broadened existing categories like ophthalmology, gynecology, and urology, extending these services to additional cities beyond major metropolitan areas.
In conclusion, Pristyn Care’s innovative asset-light business model, combined with its patient-centric approach and strategic use of technology, has enabled it to establish a strong presence in India’s healthcare sector. While challenges persist, the company’s diversified revenue streams and commitment to enhancing patient experience position it well for sustained growth in the evolving healthcare landscape.
Shashi Kant is the Founder and Editor of BusinessScroller.com, a leading platform for business insights, finance trends, and industry analysis. With a passion for journalism and expertise in business reporting, he curates well-researched content on market strategies, startups, and corporate success stories. His vision is to provide valuable information that empowers entrepreneurs and professionals. Under his leadership, BusinessScroller.com has grown into a trusted source for in-depth articles, customer care guides, and financial expertise.
