Long queues outside top government hospitals are testimony to India’s fledgling public health system. Services as basic as dialysis centres are largely restricted to Tier-I cities and these would structurally be one big centre located typically within government hospitals. This leaves no alternative for the patients living in the suburbs and outskirts, but to travel long distances every two-three days to get their routine therapies. In some cases, patients are covering nearly 100-150 kilometres to reach their nearest centres, leading to a risk of infection or worse, people increasingly dropping out of the treatment.
“In India, only 30% of kidney ailment patients actually manage to get their dialysis therapies”, states Shashank Moddhia, founder, The Renal Project. The biomedical engineering graduate from the University of Texas stumbled upon interesting titbits about the field of kidney care in the Asia-Pacific region, during his last job as a quality manager at Baxter International. “The company makes kidney care products. While we were thinking of building innovative and futuristic products in the company, I decided to check how many dialysis machines we had sold in various countries. I was intrigued to know that we had sold only 600 in India against 2,200 in Hong Kong. I started digging deeper,” he says.
Owing to these startling discoveries, he decided to set up micro-dialysis centres at various neighbourhoods, focusing on the outskirts, suburbs and the neighbouring towns and villages by tying up with local hospitals. These centres are mostly 200 sq. ft rent-free spaces with two-three beds, at partnering hospitals. The start-up doesn’t have to pay for water, electricity and emergency ICU facilities either. In return, it shares 150 per dialysis session per patient. The start-up charges around 1,200-1,300 per dialysis session, which can go up to 4,000 for an emergency-basis dialysis at night. “The 4,000 we charge are the professional's costs. It can go as high as 10,000 at regular hospitals,” says Moddhia. The first centre was inaugurated in the northern suburb of Borivali in Mumbai, followed by one at Mira Road. Next in line are four more across Mumbai and Pune in the coming months. The centres have seen warm business, with Borivali and Mira Road clocking in 125 and 180 sessions, respectively so far. Of the total, only three were emergency sessions.
Trusting the business model, Moddhia is sure that the venture will sustain itself post the first round of funding of 2.5 million from 100X.VC they received in November 2019. He invests about 400,000-500,000 to open a new centre, besides arranging the dialysis machines on a rental basis. “Just from the revenue of the first centre, we had sufficient capital to open a second one in three to four months. There are mohalla clinics at some places that would charge 250-300 per dialysis, but they are usually able to do this due to the funding they would get from local politicians. In such centres, there will always be issues with getting aptly trained technicians and right quality instruments and solutions,” says Moddhia, who claims they only keep instruments of the highest quality, comparable with the top hospitals. Apart from the local clinics, the only one indirectly competing with them is 10-year-old Nephroplus, but they operate in central parts of cities and offer comparatively larger centres with 10-15 beds, unlike The Renal Project.
In an effort to promote goodwill and shedding unnecessary expenditure for grand celebrations, Moddhia says they will offer free blood tests at centre inaugurations, starting with the Dombivli centre, which is slated to open on March 12.