Even Healthcare, an Indian startup, has raised $50 million to challenge traditional hospital economics by focusing on patient care rather than profit-driven treatments.

The firm operates its own hospitals in Bengaluru, where it has achieved operational profitability and claims to have reduced readmissions and hospital stays by 40%.

Unlike conventional hospitals, Even pays doctors fixed salaries and ties performance incentives to patient outcomes rather than procedures. This model aims to save insurers money while providing better care.

The startup’s approach has caught the eye of Khosla Ventures, which sees it as a potential game-changer for the Indian healthcare sector. However, Even is still facing financial losses and has recently laid off 350 employees.

With a valuation of $300 million, Even is betting on growth over profitability, aiming to serve more patients and potentially turn a profit in the future.