Authors: Ram Nidumolu, D.V.R. Seshadri, Ratan Jalan


Evita Fernandez, CEO, Fernandez Hospital, (FH), which had a formidable reputation as a provider of quality maternal and neonatal care in Hyderabad, decided to start a premium birthing facility to generate sufficient surplus, which could cross-subsidise the cost of serving the needy patients. In 2016, Evita unwrapped a 100-bed hospital named Stork Home (SH), in Banjara Hills, an upscale locality that was a prestigious commercial and residential centre in Hyderabad. Surprisingly despite the gold standards of servicing in maternity and newborn care, SH was unable to breakeven even two years after starting its operations. Despite being a transparent and ethical organisation, SH was not able to generate a surplus. The SH case posed an important question: Whether an organisation and leader with strong values that defy conventional industry wisdom could be successful, or should they be merely aligning with prevailing practices, in order to be successful. The present circumstances also led to insights on an even more profound question: How could an organisation do well while it is seeking to do good?