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Each one of us likes to walk in the rain, enjoy the cold breeze with cups of ice cream and then fight the humidity by taking pleasure of the most wonderful creation by human beings- the Air conditioner. Pretty much like almost everyone else in this city I am not immune to the cough, cold and the respiratory track infections that that the damp and the cold brings. Though such trivial issues of health can be well looked after by our family physicians and the neighbourhood clinics, what about slightly serious health problems. The only solution left is to go to see a specialist at branded hospitals and with a course of antibiotics all will be fine. The healthcare landscape in India is painted by a few great names like Fortis Escorts, Max Hospitals and Apollo Hospitals. In our study we will provide insights to the healthcare services in India with special reference to Apollo Hospitals. ABOUT THE FOUNDER Dr Prathap C. Reddy is a Cardiologist and an entrepreneur who founded the first corporate chain of hospitals in India – the Apollo Hospitals Group. He revolutionized the healthcare scenario of India and inspired others to follow suit. Today, India has over 750 corporate hospitals all over the country.
Dr Reddy received his medical degree from the Stanley Medical College in Chennai and later trained as a Cardiologist in the UK and USA. He did his Fellowship from the Massachusetts General Hospital, Boston and went on to head several research programs at the Missouri State Chest Hospital, USA where he worked for several years before returning to India.
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The dream of making world-class medical facilities in India spurred him to setup the Apollo Hospitals in Chennai in 1983 at a time when private healthcare institutions were virtually unknown in our country. The new Hospital attracted the best medical talent, including eminent non-resident Indian doctors from hospitals in the US and UK to return to India: this was the first major reversal in the pattern of brain drain.
Starting from a 300-bedded Hospital in 1983, the Group has, over the past 28 years, continuously excelled and maintained leadership in medical innovation, world-class clinical services and cutting edge research. With a network of over 8,500 beds across 54 hospitals at culturally diverse locations in India and overseas, over 4000 top class clinicians and an employee strength of more than 65,000 professionals, the Apollo Hospitals Group is one of the largest hospital groups in the world, being consistently ranked amongst the best hospitals for advanced medical services. These hospitals have served over 19 million patients from 55 countries, with seven of them having the prestigious JCI accreditation.
Dr. Reddy has undertaken pioneering work in bringing about institutional changes in the private healthcare infrastructure by, inter alia, establishing Apollo Institutes for post graduate Medical and Nursing Education, Hospital Administration, Physiotherapy, Clinical Research and a large number of Paramedical Programs. With the setting up of the Apollo Telemedicine Networking Foundation, Health Super Hi-way, Apollo DKV Insurance Co. and the Apollo Reach Hospitals, the Apollo Group (primarily identified as a healthcare provider) is today a leading provider of healthcare solutions, inclusive of next generation healthcare IT solutions and services. These have helped establish a modern healthcare network through both in house and outreach services, reaching out to millions of people.
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Dr Reddy was awarded the Padma Bhushan in 1991 for his contribution to the emergence of the private healthcare sector and his role in bringing about several regulatory changes relating to licensing, import restrictions, organ transplantation, etc. He received a number of esteemed awards and recognitions such as Mother St Teresa’s ‘Citizen of the Year Award’, recognition in a Harvard School publication for pioneering efforts in healthcare, ‘Life Time Achievement Award’ by Hospimedica International, the ‘Asia Pacific Bio Business Leadership Award’ by the University of Southern California, Modern Medicare Excellence Award by the ICICI Group for outstanding achievements in the healthcare industry and several others.
As Chairman of the CII National Healthcare Committee since 2006, Dr. Reddy constituted sub-committees for drawing up standards for accreditation of Indian Hospitals for the first time in the country; did some commendable work in the areas of medical value travel and medical code of ethics. One of the areas of impact has been the area of budget recommendations to the Government and health insurance.
In November 2009, The Government of India honoured the pioneering spirit of the Apollo Hospitals Group with the release of a postage stamp.
Dr. Prathap C. Reddy was conferred with second highest civilian award, the “Padma Vibhushan” in March 2010. This unequalled commendation from the Government of India is an acknowledgement of his untiring pursuit for excellence in healthcare as Apollo strives towards touching a billion lives.
Under Dr. Reddy’s leadership, the Apollo Group has undertaken philanthropic work through
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‘Save a Child’s Heart Foundation’ (SACH), the CURE Foundation for cancer care, the Indian Head Injury Foundation (IHIF), ‘Distance Healthcare Advancement’ (DISHA), and many others that have touched the lives of several hundred thousand children, differently-abled people, cancer and brain trauma patients. THE APOLLO GROUP It is often said that nothing happens, unless there is a dream first. At the genesis of the Apollo story there was a dream. A dream so powerful, that it helped transform the medical landscape in India. Apollo's vision for the next phase of development is to 'Touch a Billion Lives'.
"Our mission is to bring healthcare of International standards within the reach of every individual. We are committed to the achievement and maintenance of excellence in education, research and healthcare for the benefit of humanity"
Today, with over 8500 beds across 54 hospitals, and a significant presence at every touchpoint of the medical value chain, Apollo Hospitals is one of Asia’s largest healthcare groups. Commenced as a 150 bed hospital, today the group has grown exponentially both in India and overseas. Its growth is often said to be synonymous with India emerging as a major hub in global healthcare. Apollo Hospitals is driven by a single thrust, to provide the best standards of patient care. It is this passion that has lead to the development of unique centers of excellence across medical
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and a beacon of hope to so many searching for a cure for their ailments. medical business process outsourcing. Page 5 of 48 . Apollo Hospitals has JCI accreditations for 7 of its hospitals. the group has made quality healthcare accessible to the people of India. excellence. The legacy of touching and enriching lives stems from the pillars of the Apollo philosophy . the group’s service offerings include healthcare at the patient’s doorstep. As a result of these efforts. the group today is in a unique position to exponentially increase its healthcare cover. education.disciplines. This will be critical in order to meet future requirements. True to its founding principles. and even overseas.experience. training programs & research services and a host of other non-profit projects. is an integrated healthcare organization with owned and managed hospitals. telemedicine services. To enhance performance and service to customers. the largest by any hospital group in the region. third party administration services and health insurance. The Apollo Hospitals Group is the pioneer of integrated healthcare delivery in India. within the Apollo Hospitals network. the company also makes available the services to support business. This vision led the group to earmark time and resources to strengthen each vital cog in the process of healthcare delivery. expertise and research. In addition. Apollo Hospitals Group. clinical & diagnostic services. It has become an institution of trust. diagnostic clinics. dispensing pharmacies and consultancy services. today.
000 cardiac surgeries .000 minor surgical procedures with exceptional clinical outcomes. Page 6 of 48 . either by thoracotomy (minimal invasive access) or classical sternotomy. as well as the first multi organ transplant in the country.APOLLO’S MILESTONES MEDICAL : • • Pioneered open heart surgeries and cardiac catheterization. • Apollo performed an unprecedented revolution in orthopedics by equalizing limbs and deformity correction by the llizarov procedure. Pioneers of the Preventive health check programmes in India and performed 3 million checks to date. • • First private healthcare provider to perform a heart transplant in 1995. In 1995.6% success rate in cardiac bypass surgeries. over 91% of which were beating heart surgeries. • Performed over 7.000 major surgeries and over 10. Conducted over 90.00. • Largest series of aortic valve replacement with stentless heart valve bioprosthesis performed. Apollo Hospitals performed its first Bone Marrow Transplantation. Achieved a 99. mitral valve replacement.50. • Introduced cutting edge procedures like off-pump and beating-heart surgery. • • By 1992.one of only 10 hospitals in the world to achieve these volumes. in the early 80’s. Apollo Hospitals introduced Artery Stenting for the first time in India. trans-radial angioplasty and stenting.
• Pioneered orthopedic procedures like hip and knee replacements. Chennai successfully performed an Arthroscopic Brachial Plexus Catheterization on a young lady patient. • The Paediatric Cardiac team at the new Apollo Children’s Hospital successfully performed a complicated surgery to treat a complete AV canal defect in a 4–month old Nigerian baby in 2009. Apollo Hospitals was the first Indian hospital group to introduce Stereotactic Radiotherapy and Radiosurgery for cancer treatment. Page 7 of 48 . Chennai. The Orthopaedic team at Apollo Hospital. • An innovative Orthopedic procedure was performed for the first time in India at Apollo Hospitals Chennai .leading to pain free postoperative recovery after shoulder surgery. • Revolutionary Ceramic Coated Knee Replacement was performed for the 1st time in South India at Apollo Speciality Hospital.First successful: • • • • • • Pediatric liver transplant in India Adult liver transplant in India Cadaver liver transplant in India Transplant in acute liver failure in India Liver-kidney transplant in India were all performed by Apollo Hospitals. • Resorbable screws were used for the first time in India at Apollo Hospitals Chennai to correct congenital spine problem of a six-year-old child from Tanzania. the Illizarov procedure and the Birmingham hip re-surfacing technique.
This technique uses a combination of small holes in the chest and a small incision. It took less than four hours to perform the scarless surgery.Angio scan system and the 64 Slice CT-Angio scan system to India. • First hospital group to bring the 320 Slice CT. Introduced the most advanced CyberKnife® Robotic Radio Surgery System in Asia Pacific. Page 8 of 48 .Such simultaneous bypass and reconstruction in a young child was a first for India and only a few such procedures had been done worldwide. It is often performed using robotics and video-imaging. made indirectly over the coronary artery to be bypassed. Equipped with the largest and most sophisticated sleep laboratory in the world. without cutting any bone of the patient. the world’s first and only robotic radiosurgery system designed to treat tumors anywhere in the body with sub-millimeter accuracy.• India's first keyhole multiple bypass surgery was conducted at the Indraprastha Apollo Hospital. which help the surgeon operate in a small area. MEDICAL TECHNOLOGY: • First to install the most modern diagnostic and surgical infrastructure like the 320Slice CT Scan and many others. • An 8 year old Omani child with aortoarteritis and uncontrollable hypertension with impending kidney failure and intestinal gangrene was successfully managed by a simultaneous vascular reconstructive surgery on the narrowed arteries supplying both the kidneys and the intestines at Apollo hospitals chennai . Delhi. • • • First hospital group in South-East Asia to introduce the 16 Slice PET-CT Scan.
became the first hospital in India. lengthy recovery periods and many of the complications often associated with conventional surgery. Joint Commission International Accreditation The Apollo hospitals group achieved the unique distinction of achieving accreditation for its hospitals at Delhi. Delhi. a healthcare provider’s quality in the following key areas • • Access to health care Health Assessment and care processes Page 9 of 48 . Apollo Hospitals Bangalore. while Apollo Hospitals. Indraprastha Apollo Hospitals. efficient and well-managed facilities. so patients can avoid hospitalization. This protects the patient’s healthy tissue. one of the most precise. Treatments are delivered from outside the body to destroy tumors without an incision. Chennai. Kolkata and Dhaka. became the first hospital in South India to achieve this unique and coveted accreditation. JCI assesses through a rigorous on site survey process. Quality & Accreditations 1. Chennai. Indraprastha Apollo Hospitals Delhi and Apollo Dhaka were re-accredited in August 2011. Hyderabad. Ludhiana. non-invasive and fastest treatments available for cancerous and non-cancerous conditions of the entire body was launched at Apollo Cancer Institute Hyderabad in 2009. JCI works directly with healthcare organisations to achieve their goals of providing quality clinical care and services in safe.• Novalis Tx™ Radiotherapy & Radiosurgery . Bangalore.
Page 10 of 48 . The board is structured to cater to much desired needs of the consumers and to set benchmarks for progress of health industry.particular requirements for Quality & Competence" for its facilities in the field of Medical Testing. Madurai and Apollo Speciality Hospitals Chennai were accredited by the NABH. Apollo Speciality Hospitals. 3. NABL Accreditation Apollo Hospitals. Chennai WAS assessed & accredited in accordance with the Standard ISO 15189 : 2003 "Medical Laboratories .• • • • • • • • Education and rights of individuals Management of information and human resources Safety of facility Infection control Collaborative integrated management Facility management Performance Measurement Education & Rights of Patients 2. Chennai was the first hospital in India to be awarded an ISO 9002 certification. ISO 9002 Apollo Hospitals. 4. set up to establish and operate accreditation programmes for healthcare organizations. NABH accreditation National Accreditation Board for Hospitals & Healthcare Providers (NABH) is a constituent board of Quality Council of India.
Presented below are some of the achievements of Apollo Group of Hospitals: 1. media and advertising professionals. Page 11 of 48 . 5. Chairman Dr. technology or services or in the calibre and brilliance of their medical fraternity. In Jan 2010. As the council members agree. for excellence and exceptional service in the Healthcare industry in the country.be it infrastructure.The ISO 9000 series is concerned with 'quality management'. Prathap C Reddy was conferred with the Padma Vibhushan award by the Government of India. Awards & Achievements Excellence. is the quintessence of Apollo Hospitals. was also awarded the Padma Bhushan in 1991. Prathap C Reddy. It is a certification affirming the organization's ability to enhance customer satisfaction by meeting customer and applicable regulatory requirements and continually to improve its performance in this regard. Superbrand The Indian Consumer Superbrands Council includes some of the most eminent marketing. "Obtaining Superbrands' status puts the brand in the circle of an elite group that is seen to represent the best practices in brand management. India. The ISO standards are a guarantee of quality across boundaries and geographies. This is reflected in many areas . They are an assurance to the international patient of the safety and reliability of Apollo's services against global benchmarks. literally meaning unparalleled superiority. Apollo Hospitals entered the 'Superbrand' category in 2004. Ultimately it can be likened to a brand Oscar. Dr.
Page 12 of 48 . Prathap C Reddy awarded with the prestigious Alexandria . Apollo Hospitals won the − "India's Most Preferred Hospital" − Viewer's Choice Award at the India Healthcare Awards announced by CNBC − TV18 and ICICI Lombard Health Insurance.Frost & Sullivan 2010 . o Apollo Hospitals at Hyderabad. Dr. 6. at the 5th Indy's Awards 2011. 5. o Apollo hospitals at Kolkata and Delhi ranked by Best private Sector MultiSpeciality Hospitals at the respective cities. Delhi has been ranked the Second Best Private Sector Hospital in India. Billion Hearts Beating (BHB) Campaign is a proud winner in the Corporate Social Responsibility practice category. Apollo Hospitals Group won many laurels in the Best Hospitals in India . Billion Hearts Beating Campaign wins the "Best Marketing Campaign of the Year" Award at the World Brand Congress 2010. Chennai. o Indraprastha Apollo Hospitals.Lifetime Achievement Award in Healthcare Sector and Apollo Pharmacy presented with the Healthcare Retail Company of the Year Award ! 3. 4. has been ranked as the Overall Best Private Sector Hospital in India.2. Chennai and Ahmedabad ranked as the Best Multi-Speciality Hospitals at the respective cities.Survey 2010 by "The Week" Magazine ! o Apollo Hospitals.
by ICICI Group. Managing Director. Apollo Hospitals Chennai was awarded the Padma Bhushan. In 2006. Dr. Mani. Dr. was conferred the Doctorate of Science (Honoris Causa) by the Tamil Nadu Dr MGR Medical University. Apollo Health City. In 1991. CEO.R. 8. Prathap C Reddy received the Ernst & Young Entrepreneur of the Year Award in 2002. Girinath. 9.K. London conferred the prestigious ‘Honorary Fellowship’ of the College on Dr K Hari Prasad.7. 12. Prathap C Reddy received the Asia-Pacific Bio-Business Leadership Award in 2005. Chief Nephrologist Apollo Hospitals Chennai was awarded the Padma Bhushan 14. for her outstanding contribution to the field of healthcare in India in 2009. for his outstanding achievements in the healthcare industry. Prathap C Reddy received the prestigious Sir Nilrattan Sirca Memorial Oration (JIMA) Award for single-handedly making super speciality care available to a vast section of society. 13. Preetha Reddy. Hyderabad in 2009. Dr. Ms. Chief cardiovascular surgeon . 10. Dr M. 11. Page 13 of 48 . Dr M. Prathap C Reddy was awarded the ‘Modern Medicare Excellence Award 2006’. Dr. The College of Emergency Medicine. In 1998.
Apollo Hospitals. It was in 1984 that the hospital commenced its commercial operations. Apollo Hospitals has seen three decades. 3. the Apollo Indraprastha Hospital in New Delhi was inaugurated and the Apollo Nursing College was established. The 1990s 1. 2.The Apollo Growth Story Since its inception. a believer that comprehensive health insurance is essential to optimize the medical equation. In 1993. Dr. 3. In 1994. they announced their first dividend and by 1988 expanded to Hyderabad. a state of art cancer hospital. 2. Apollo Hospitals launched the 24 hour ambulance service. The first Apollo Hospital was in Chennai. In 1996. 4. And each has brought with it. The 90’s witnessed a rapid rise in its operations and infrastructure. Within three years of operation. its own share of cherished memories. Page 14 of 48 . Prathap C. THE 1980s 1. under his guidance in 1986 introduced a medical insurance scheme in collaboration with United India Insurance Company Limited. the then President of India. Reddy.the Apollo Speciality Hospital in Chennai was inaugurated. The group showed great promise and blossomed quickly. Apollo Hospitals were inaugurated in 1983 by Shri Giani Zail Singh.
In 2002. Mysore. 2000 to 2005 1. 2. 3. Apollo’s presence was extended in Sri Lanka. 4. 6. In 2008. Kolkatta and Kakinada. The story of Apollo Hospitals became a case study at teh prestigious Harvard University. 2009 to Date Page 15 of 48 . inaugurated in 2000 was the first telemedicine facility in the country. Apollo Reach Hospitals were launched with the aim to make world class healthcare accessible to people in remote areas. Save A Child’s Heart initiative was launched. It was inaugurated by Bill Clinton. Dubai. Apollo Aragonda. Apollo Hospitals Group partnered with Munich Health. Bangalore. 2. This initiative aimed at providing quality paediatric cardiac care to children from underprivileged sections of society. Apollo continued to grow as a healthcare powerhouse. a world leader in the field of health insurance to launch Apollo Munich. Apollo also launched its nationwide single emergency number. Hospitals expanded to Ahmedabad. Saudi Arabia and Ghana.5. Apollo Hospitals turned 25. Bilaspur. 3. The late 90’s were marked by the inauguration of Apollo Hospitals in Madurai and the Apollo Heart and Kidney Hospital in Vishakhapatnam. 2006 to 2008 1. 5.1066.
Apollo Speciality cancer Hospital launched the Cyberknife robotic radio surgery system.Novalis Tx Unit. Apollo Bramwell Hospitals. The 50th hospital of the Apollo Hospital Group was launched at Secunderabad on 2nd April 2010. Apollo Hospitals. 3. Eastern India’s first super speciality Cancer Hospital was inaugurated on 23rd march 2010. Bangalore were inaugurated by Her Excellency Shrimati Pratibha Patil on 1st February 2009. 7. 5. It is a 150 bed tertiary hospital. Apollo Gleneagles Cancer Hospital. The ‘Apollo Liver Clinic’ was launched at Apollo Hospitals. a state-of-the-art multi speciality hospital in MokaMauritius was inaugurated as a Joint Venture with British American Investment Co. It is the first comprehensive cancer care hospital in Eastern India equipped with the latest radio therapy. Limited. Novalis radio surgery system was launched at Apollo Health City. 2.1. Chennai. Page 16 of 48 . 4. 6. Hyderabad.
Cardiology & Cardiothoracic Surgery 2. Oncology 5. Orthopedics & Joint Replacement Surgery 3.Apollo Hospitals Group – The Group has an integrated business model (‘Across the Healthcare Spectrum’) Company Services Services offered by the company: 1. Medical & Surgical Gastroenterology Page 17 of 48 . Spine Surgery 4.
Nephrology & Urology The Apollo Expertise One of the most respected hospitals in the world.laparoscopic Laparoscopic Hernia Repair Page 18 of 48 . Apollo hospitals specializes in cutting-edge medical procedures. Multi-Organ. Some of the health procedures are• • • • • • • • • Cardiac Surgeries Total Knee /Hip Surgery Replacements Birmingham Hip Resurfacing Procedure Liver.6. and Cord Blood Transplants Coronary Angioplasty Stereotactic Radiotherapy and Radio surgery Cosmetic Surgery Bariatric Surgery . With the evident boom in Medical tourism. Neurology & Neurosurgery 7. we have a lot of health tourists choosing us as their ultimate Health Tourism destination for medical services .They have pioneered many revolutionary procedures and technologies in India. and a whole lot of health tourists come to opting either for medical care or elective procedures.
Opportunities • Indian healthcare market is expected to quadruple to $150bn by 2017 from Threats • Medical equipments accounts for 40-45% of the total expenditure in Page 19 of 48 . besides Hospital SWOT Analysis Of Apollo Strengths • Largest private sector healthcare Weaknesses • Falling margins due to the provider in India. • Consistent revenue growth across pharmacy business.• Laparoscopic Adrenalectomy Apollo Hospitals Group– Companies. business segments.
TTM (Rs):14.00 Latest Div. which is already into it. Apollo. Attrition rate in the healthcare sector is expected to increase with the surge in demand for medical professionals FINANCIALS OF APOLLO Market Cap (Rs Cr.98 Balance Sheet of Apollo Hospitals Enterprises ------------------.795 EPS .04 Face Value (Rs):5.74 P/E Ratio (x):35.93 P/B Ratio (x):3. Apollo well positioned to capitalize on this growth opportunity. • Medical tourism market expected to reach $40bn by 2010. Yield (%):0.in Rs.):6. • hospitals. Cr. is well placed to grab the maximum share.00 Div. ------------------- Page 20 of 48 . Any change in technology will make existing medical equipments obsolete.the current size of $35bn.72 Book Value / sh. (Rs) :129. (%):75.
772.18 601.67 759.6 8 129. 398.00 Preference Share Capital Reserves 68.641.57 0.00 1.83 Share Application Money 0.00 1.9 1 0.24 7.238.20 13.00 753.78 61.33 51.302.86 0.444.83 198.0 4 292.820.00 1.51 0.513.5 1 Less: Accum.48 1.7 6 Mar '11 60.43 218.40 741.64 51.00 0.3 4 58.29 940.55 12.75 14.69 58.Mar '11 Mar '10 Mar '09 Mar '08 Mar '07 12 mths 12 mths 12 mths 12 mths 12 mths Sources Of Funds Total Share Capital Equity Share Capital 130.24 60.479.00 1.17 471.61 184.108.40.206 7 Secured Loans Unsecured Loans Total Debt Total Liabilities 549.231.69 14.01 2.541.44 305.64 1.99 234.50 1.51 1.36 61.30 Mar '10 Mar '09 Mar '08 Mar '07 12 mths 12 mths 12 mths 12 mths 12 mths Application Of Funds Gross Block 1.64 6.93 449.18 897.78 0.370.00 694.13 Page 21 of 48 .99 2.74 331.00 1.8 6 436.00 1.00 1.9 9 Revaluation Reserves Networth 0.47 277.7 8 0.56 689.543.86 62.71 0.43 144.16 0.
45 0.76 in 352.122.04 293.31 1.03 489.26 140.30 0.69 & 1.40 0.82 0.98 55.82 461.19 208.35 74.91 269.68 1.65 662.40 924.513.84 160.231.00 337.84 571.00 372.16 84.48 423.50 289.00 2.78 897.05 1.67 243.2 6 0.51 538.69 144.46 Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses Total Assets COMPETITION Page 22 of 48 .74 597.64 101.91 0.75 496.38 249.85 226.09 126.6 8 354.01 2.73 187.09 412.45 79.74 297.Depreciation Net Block Capital Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA.88 514.52 91.820.06 637.36 197.68 245.21 273.18 0.543.53 174.69 17.19 97.79 134.74 136.7 6 Contingent Liabilities Book Value (Rs) 817.25 260.52 269.045.80 321.99 524.133.00 182.83 110.66 22.74 51.18 Work 1.89 46.68 521.21 642.75 327.59 199.15 524.56 263.05 108.54 0.56 0.3 3 569.38 442.27 0. Loans 624.85 646.61 494.81 786.48 339.75 20.00 199.45 374.00 215.84 42.75 402.11 150.50 39.12 490.34 205.
the health care division of the Manipal Group.000 crore by 2012. was a strategic investor in Fortis. operated specialty hospitals in Mumbai. Many of Apollo’s competitors including Delhi-based Max Healthcare and Fortis worked on building integrated delivery networks ranging from primary to tertiary care services.000 to 300. translating into a large potential opportunity. to reach a level of Rs. Wockhardt had formed an alliance with Harvard Medical International to gain access to Harvard’s expertise in the field of surgical services. largely spurred by an increased corporate presence in the sector. For instance. a private-public venture set up by the government of India.000 beds in 10 hospitals over the next few years. India’s largest pharmaceutical company. and growing income levels. one of Asia’s largest hospital management groups. 200.000 beds. Wockhardt Hospitals Ltd. Bangalore and Kolkata. Ranbaxy Labs. have all led to a large unfulfilled demand for high quality healthcare services.Apollo had a number of competitors in the market for privately-provided tertiary care.. Page 23 of 48 . managed super and multi-specialty hospitals in three locations in India and planned to grow from 600 beds in 4 hospitals to 4. Today. the growing incidence of lifestyle diseases. Analysts expected India’s private tertiary care sector to grow at 15% CAGR in the next few years. Fortis Healthcare Ltd. ran 11 private and 7 government-affiliated hospitals with more than 6. the hospitals division of the eponymous pharmaceutical company. healthcare is being touted as the next big boom. saw three main drivers of future growth: The present shortage of premium medical facilities. holding a 17% stake in the company. and the sector is expected to grow rapidly over the next decade. The Infrastructure Development Finance Company (IDFC). Wockhardt planned to set up at least five new super-speciality hospitals in the next three years.
00 68.72 141.51 Page 24 of 48 .04 174.27 603.90 182. (Rs.67 0. cr. The key to successful hospital management.45 35.34 20.81 244.055.18 2.00 Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share 130.492. As a result.20 9.56 0.36 0.Although demand for tertiary care services was poised to grow.14 Net Profit Total Assets Apollo Hospital Fortis Health Opto Circuits Indraprastha Kovai Medical Lotus Eye Care 516.65 317.302.98 6. In the 1990s. Apollo’s sound financial performance.in Rs.73 12.86 62.96 19.99 243.01 54.00 Medicure Mar '10 10.13 30.91 0.331.00 0.784.67 91. these observers noted.60 118.69 181.95 6.36 129.33 Circuits Mar '10 182.01 5.19 Balance Sheet -------------------------. ----------------------------Apollo Fortis Opto Indraprastha Poly Hospital Mar '11 Health Mar '10 321. hospital financing had all but dried up by 2002.20 458.45 160.32 0.824.513.44 0.14 326.) Sales Turnover 2.00 Mar '10 91.44 2. analysts believed.91 10.25 284. mainly because in-patient care required considerable up-front investments. keeping hospitals profitable was not easy.45 1.93 164. many highly-leveraged hospitals found themselves unable to service their debt.10 0.00 4.90 24. was to keep up-front investments and operating costs in check. was in good part due to the group’s ability to tightly control operating costs. Comparison with Competitors Last Price Market Cap.96 258. Cr.
45 2.87 12.824.80 48.30 34.99 623.641.12 48.33 37.242.59 42.04 Poly Medicure Mar '10 92.74 1.384.48 1.01 2.192.05 0.12 6.76 352.87 4.00 101.00 115.05 11.20 97.75 Mar '10 374.17 67.40 49.00 24.93 13.32 0.00 372.03 0.54 56.88 143.95 205.73 653.87 198.75 0.00 0.133.00 1.40 1.16 549.54 44.31 135.444.67 85.824.00 97.25 91.23 6.00 1.50 39.26 27.85 421.055.14 0.12 490.89 1.93 17.21 0.91 164.49 0.91 0.00 861.91 21.84 32.582.64 101.00 9.84 571.60 29.71 0.Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities 1.40 624.71 41.48 54.21 642.43 0.18 1.29 1.83 138.31 14.82 10.70 192.50 29.05 2.75 518.55 0.00 23.86 1.60 28.16 58.28 3.74 136.85 168.76 -53.513. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA.03 0.62 0.05 11.00 59.14 4.58 1.46 Application Of Funds Gross Block Less: Accum.52 269.40 741.46 Fortis Health Mar '10 140.79 0.260.00 1.355.67 107.61 Page 25 of 48 .66 1.513.85 44.66 0.68 521.61 191.43 3.83 0.00 2.96 72.20 22.772.34 1.185.06 2.88 0.055.40 62.35 28.91 269.00 85.82 168. Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses Total Assets Contingent Liabilities Book Value (Rs) 1.99 Opto Indraprastha Circuits Mar '10 93.73 454.395.50 398.93 36.99 70.11 150.76 2.35 198.29 2.69 1.00 164.18 817.30 0.17 Apollo Hospital Mar '11 1.446.045.31 0.10 0.74 49.91 4.87 45.50 80.00 194.
66 1.84 Indraprastha Mar '10 62.47 109.20 1.00 250.00 0.951.09 8.93 398.00 363.39 1.40 132.36 270.33 269.48 22.83 0.19 7.03 0.96 -3.77 7.79 0.11 14.33 63.349.53 13.00 81.15 187.73 15.54 58.00 1.52 16.54 0.30 47.64 339.06 Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Admin Expenses Miscellaneous Expenses Preoperative Exp Capitalised Total Expenses 2.10 0.35 47.33 18.70 135.00 30.00 46.88 -0.96 17.78 25.73 3.57 0.26 0.15 0.44 235.28 41.97 4.16 -1.20 10.41 0. Cr.38 0.00 2.00 30.173.49 Fortis Health Mar '10 22.95 Circuits Mar '10 Mar '10 471.06 363.25 4.00 0.04 17.247.52 168.331.00 2.19 10.2 4 0.00 471.25 70.11 238.90 70.00 165.73 13.72 19.64 163.951.00 426.75 227.43 51.92 1.73 Poly Medicure Mar '10 33.48 0.97 16.06 0.07 16.79 0.829.57 Operating Profit PBDIT Interest PBDT Depreciation Other Written Off Profit Before Tax Extra-ordinary items PBT (Post Extra-ord Items) Tax Reported Net Profit Total Value Addition Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualised) Shares in issue (lakhs) Earning Per Share (Rs) Page 26 of 48 .08 68.51 459.00 187.00 357.33 Opto Circuits Mar '10 214.57 3.96 181.85 29.89 1.09 0.48 0.29 0.10 8.77 6.00 256.04 426.31 1.39 Poly Medicure Mar '10 137.41 -0.49 916.72 1. ------------------Apollo Fortis Opto Indraprastha Hospital Mar '11 Health Mar '10 209.67 2.00 4.331.00 14.00 0.00 82.06 15.66 202.75 0.71 0.00 209.Profit & Loss account ------------------.59 1.03 Apollo Hospital Mar '11 380.00 47.21 31.82 0.50 -11.26 3.00 3.0 0 8.49 0.66 0.20 0.97 0.59 1.32 0.00 434.85 66.78 34.00 2.62 0.06 18.49 147.298.00 50.29 0.27 30.23 85.00 0.96 0.50 0.00 0.63 29.82 41.70 51.43 0.00 102.67 88.07 0.61 0.14 0.88 21.in Rs.
73 40. some managers were excited about the prospects of developing insurance products to further stimulate the demand for health care services. the prospects of international hospital management. International Hospital Management A second possibility was to aggressively acquire international hospital management contracts.00 14. and the possibilities related to global medical tourism. it had developed some business Page 27 of 48 .00 45. In reviewing these ventures.80 25. Were there significant strategic risks in developing an IDN? Should the group add additional services? For instance.75 16. Traditionally. First steps in this direction – the pharmacies and the primary care clinics – had already been taken. Apollo’s managers needed to decide if they fit well with Apollo’s core business.00 54.Equity Dividend (%) Book Value (Rs) Strategic Opportunities 75. Apollo had managed hospitals in South Asia and the Middle East. The geographic focus of Apollo’s activities was another strategic variable under consideration. Integrated Health Care Delivery Networks (IDN) A first strategic possibility was to focus Apollo on the development of the domestic market and build up a vertically integrated health care delivery network. More recently.61 0. three major decisions were likely to be on the family’s mind: opportunities arising from deeper vertical integration in the domestic market.00 49.46 In thinking about Dr.00 136. An interesting question was if Apollo should consider foreign direct investments – a strategy the group had successfully pursued in Sri Lanka – or if it should concentrate on managing hospital assets without owning them. Reddy’s challenge to come up with a new strategic vision for the Apollo group.
no significant layoffs would be possible. which was financed by contributions from companies and employees. the private operator was responsible for operations and capital expenditures. we need to go there with a positive spirit. Romania had 400 public hospitals with 160. Fundeni was a major tertiary care hospital with 1. Reddy was optimistic about Fundeni: “I am now managing hospitals in Colombo. but I feel I should also be prepared to go to Central Europe and possibly the UK. While Romania would retain ownership of all assets. however. which had the potential to open up the Eastern European markets. everybody told us that it would be difficult because Hyderabad is very different. felt similarly: I am very positive about this opportunity.000 beds. At the time of the case.” was “well-funded by CNAS” and “well positioned to serve the untapped private health market” in Romania.in Africa. Most health care services were covered by the National Health Insurance Fund (CNAS). Dr. it is about half distance. In the first year. The DRG was a clinical classification system used in most of Europe and in the United States. Romania is not so far. They said the same thing about the hospital in Delhi and the Page 28 of 48 . Director of Operations. The CNAS reimbursed hospitals based on the average diagnostic related group (DRG) of their patients. the Consulting Division studied a hospital project in Romania.500.” Sangita Reddy. Assisted by the IFC. going from India to America.118 beds and a staff of 1. including 289 doctors. When we started the hospital in Hyderabad. The IFC advertised the Fundeni concession as “an excellent investment opportunity” because the hospital had a “top reputation as the premier tertiary hospital in Romania. the Romanian government sought to develop a public-private partnership (PPP) for the Fundeni hospital in Bucharest. The government offered a long-term concession to run Fundeni. The concession contract required the operator to take on all staff currently on Fundeni payroll. but not a single private facility.
however. With more than one million medical patients per year. many analysts seemed to be optimistic about the prospects of medical tourism in India. For instance. but health care is very localized. Despite its weak competitive position today. a study by the Confederation of Indian Industry (CII) and McKinsey estimated that medical tourism might bring India annual revenues of $1. in contrast. more than 90 million tourists visited China each year.2 billion by 2012. India. A second target were countries with rationed health care. even India’s general tourism numbers were abysmal. In fact. Traditionally restricted to the elites of poor countries. India attracted less than 3 million foreign visitors a year. expected the group to capture up to 60% of this market. To compare. Medical Tourism A third strategic opportunity opens to Apollo was to help develop India as a destination for international medical tourism. It is interesting that there is no global health care player. global medical tourism was a relatively recent phenomenon. Significant quality and cost differences in hospital care. Apollo’s managers identified four international customer segments likely to come to India for medical treatment. made international patient mobility ever more attractive.hospital in Sri Lanka. First. Despite its rich cultural heritage and the many interesting destinations it offered. Thailand was the most successful destination.1 to $2. There is room for more globalization in health care. Every other business is more global. was not yet on the map for medical tourists. many of them undergoing plastic surgery. they hoped that members of the 20-million strong Indian diaspora might combine a home visit with medical treatment. Apollo’s President. Padmanabhan. K. Apollo hoped to provide relief from the famously long National Health Service (NHS) waiting times he Page 29 of 48 . To patients in the United Kingdom and Canada.
Although the target population for medical tourism was large. “We pay for airfare and all travel expenses. In a recent survey in Europe. sent many of its patients with knee problems to a center in Alicante. For instance. Mauritius and the Maldives. as did the British health insurer Bupa. In spite of that. including round-trip airfare and a side trip to the Taj Mahal. it’s still cheaper than caring for them here.200 hospital beds run by Apollo in India. In a landmark decision. the European Court of Justice forced the German Labour Office to pay for the spa treatment of one of its civil servants. For residents of neighbouring Pakistan. In the United States. or citizens of African and Middle Eastern countries India was a quality health care location. The fourth segment were patients from regional markets in which top-quality hospitals and health professionals were hard to find. Some of these uninsured had turned to Indian hospitals in the past.legions of uninsured in the United States were a third target segment. Spain. it appeared to get easier to travel abroad for treatment. Consumer attitudes did not appear to be the problem. Apollo’s patients were mostly domestic. for the time being at least. Nepal. Some private insurers had also started steering clients to countries with cheaper care. for example. Out of the 5. The employee had decided to take his healing soak in a spa in Italy. In general. US health insurer Blue Cross Blue Shield insured patients for treatment at the Wockhardt Hospital & Heart Institute in Bangalore. the surgery would have cost $200. Bangladesh.” an OHRA spokesman said. Dutch insurance giant OHRA BV. foreign patients usually occupied about 100 beds.000. about 43 million Americans under the age of 65 had no health insurance.000. with a required initial deposit of $50. two thirds of respondents indicated they would be interested in going abroad for treatment if it was possible to use their national funding. And at least in the European Union. Most of them came from the Middle East.000. Page 30 of 48 . Africa and countries of South Asia. At any one time. a North Carolina carpenter replaced his heart valve at India’s Escorts Heart Institute & Research Centre for a total expense of $10.
To market its services to international patients. it was not easy to get coverage for treatment abroad. 80% of the bypass operations were done using the beating heart technique. Apollo and SITACARE co-financed marketing campaigns directed at medical tourists. a division of Kuoni Travel (India). Coronary Artery By-pass Grafts (CABG). We participate in marketing blitzes with them. hotel and travel arrangements. functioning as de facto one-stop shops for medical tourism. Apollo’s Managing Director. “They have a strong handle on the tourism market. Prospective patients learned that the group had performed 49. operated more than 200 offices in India and seven offices in the European Union. were available at seven different Apollo hospitals. for instance. For example. health care brokers assisted patients.” explained Ashok Anathram.sitacare. Now people have woken up. typically referred by their general practitioner. The NHS. We also develop joint brochures and contact health care brokers. On its website (http://www. offered at $6.com).however.5% success rate.940. Preetha Reddy. the SITA division dedicated to medical tourism. Apollo partnered with SITA Incoming. India has the Page 31 of 48 . In the United Kingdom. reimbursed patients only if they received care at a facility that was within three hours of flight from Britain. about 2% to 5% of which it paid out to referring doctors. SITACARE received a commission of about 10% to 15% for each patient.000 heart surgeries with a 98. was optimistic about the prospects of developing medical tourism: “Our chairman kept saying that India could be a major health care destination but no one believed him. SITACARE. President of Business Development. including the facility in Colombo. patients were able to choose medical treatments and select hospitals with a few clicks of the mouse. with packages that included treatment. The website also offered basic medical information and performance data for the Apollo hospitals.
we are way ahead of China.000 population. The number of hospital beds per 1. the broader infrastructure environment is lacking.5. India cannot wish away its ailing masses who lie unattended for want of decent health care. India has a much better private health care system than China. International competition was not the only concern related to a strategy that emphasized international patients.” Seizing this opportunity. but ultimately. the competitive advantage comes from the number of patients doctors are seeing and from their skill sets. The same shortage extends to the availability of medical and paramedical staff… Given all this. Our practices are on par with the best international hospitals and the general infrastructure is slowly getting better.potential to be a significant player. A part of our strategy could be to build a clinic in the UK. the Times of India remarked critically: While aspiring to become a world-class supplier of health care services. for example. does it make sense to promote medical Page 32 of 48 . In an editorial on medical tourism. This clinic could provide the postoperative care that patients need. Padmanabhan was concerned about China: One of the big questions is how much medical tourism will go to India and how much will go to China. Suneeta Reddy noted: “Different pieces of the puzzle need to be in place to make medical tourism attractive. or even the low-income countries average of 1. and Thailand is ahead of the game.” A critical question for the Apollo managers was how competitive the market for medical tourism would be in the future. Another important issue is after-care. was not going to be easy. Right now. But the Chinese will spend as much on health care as Indians. In terms of skills. is around one. which is well below the WHO prescribed norms. and this will act as a catalyst for the development of private health care services. At this point. the family agreed. K. The current health care situation in India is dismal.
it could adversely hit the low-income population. the development of medical tourism will alter India's health care landscape. Medical personnel and infrastructure would be geared to serve the elite. medical tourists will end up driving up health care costs.tourism? To be sure. Moreover. While it will give a boost to the private health care industry by catering to wealthy foreign and domestic consumers. Apollo’s success can be attributed to its organization around ‘Five Stars’ to give patients advanced medical care possible at high quality Page 33 of 48 .
referring doctors and corporations General public and individuals- Page 34 of 48 .Apollo’s branding and demand generation initiatives focused on individuals.
to local doctors to build relationships Frequent mailing by Apollo to the doctors. human resource managers.• • Awareness of high quality medical care and stress illness prevention Targeted mailings to promote Apollo clinics for various therapies such as diabetes. back pain. to keep them informed about the hospital's services and procedures • • • Track number of referrals made by individual doctors in a computerized database Inform and update referring doctors about the progress made with the patients Encourage Apollo doctors to participate in national Medical Association meetings to increase the Hospital’s familiarity to doctors across the nation Corporations • Corporate and government employers – Less price sensitive than those who paid out of pocket • Target key decision makers such as top executives. asthma. cancer and cardiology discounts to users • • • • Introductory attract first time Developing an internal system to respond to all consumer queries promptly Regular advertising in a variety of media to target urban consumers Screening programs for illness such as cancer and tuberculosis in rural areas Local Doctors • • Individual visits by Apollo sales force. trade union leaders and company medical advisors Page 35 of 48 .
3. core services and peripherals. There is hi-tech telecommunication available to a patient in an emergency at any given time. The hospitals have state-of-the-art ambulances. It covers issues such as service package. presentation and management of the product which is to be offered to the market place. Diagnostic services – Apollo Hospitals are multi-speiality and multi-disciplinary. The CCU's on Wheels under supervision by medical and para-medical staff. managing service offering and developing service offering. The product component of the marketing mix deals with a variety of issues relating to development. The product is the central component of any marketing mix. Emergency services – Emergency services and care at Apollo hospitals is unique and advanced.• • Mailings and individual visits Conduct programs at the companies to increase awareness and teach skills such as first aid APOLLO HOSPITAL’S MARKETING MIX PRODUCT A product is a set of attributes assembled in an identifiable form. that can Page 36 of 48 . 2. Ambulance services – Hi-tech ambulances linked by state-of-the-art telecommunications are fully equipped with doctors that are available to render medical attention and assistance in case of emergencies at the patient's doorstep. Apollo Hospitals today offer the following services: 1.
Apart from the above mentioned services. Master health check up 2. professionals. they offer a wide range of facilities for instance. 2. Orthopedics. Causality services – Causality service includes a 24 hrs. causality department. Plastic surgery and so on. Page 37 of 48 . Pharmacy services – Apollo Hospitals also have a pharmacy which is open 24 hours. business persons and so on.handle any kind of ailment. comprehensive. but also patients from other hospitals who require emergency drugs. Oncology. the service offering in Apollo Hospitals comprises of the following levels: 1. Apollo Hospitals also offers "Health Diagnosis Programme" which is a complete. Generally. emergency services. The health diagnosis programme comprises of the following: 1. periodic health check up offered for busy executives. Expected level – it comprises of cleanliness and hygiene levels maintained in the hospital. Executive Health check up 3. casuality services etc. which attends to the accident or emergency cases. It caters to the needs not only of the inpatients and outpatients. 5.. 4. Core level – it comprises of the basic treatment facilities and services offered by the hospital like diagnostic services. Neurology. Diabetics health check ups etc.
3. an initial deposit will be collected at the inpatient billing counter. As a service is intangible. Gastroenterology. services of renowned consultants. Various categories of rooms. use of state of art technology. Cancer Care. air conditioning of the hospital. Before fixing prices. PRICE It is one of the most prominent elements in the marketing mix. The amount extends on the category of room and the treatment or surgical procedure planned. Along with it. The specialities include – Heart. government controls are also taken into consideration. Prices of various facilities revised every year depending on the change in technology. On admission. Augmented level – it comprises of dress code for staff. ranging from the general ward which attends to the needs of the lower classes to the deluxe suite which attends to the needs of the middle and upper classes are available. Nephrology & Urology Critical Care. it also Page 38 of 48 . Prominently Apollo is known best for heart problems and Knee and Hip replacement surgeries besides other major ailments. Price charged must be able to target customers and it should co-ordinate with other elements of the marketing mix. The pricing strategy is formulated after consulting the concerned heads of department. Pricing strategy adopted does not depend on the price offered by competitors. Neurosciences. Price usually depends on treatment prescribed by the respective consultants and the facilities offered to the patient. The hospital is priced premium and it can afford to do the same because of its positioning and its assurance as well as the reliability on the brand of Apollo hospitals. Apollo hospital provides quality healthcare services with more than 53 branches across the country. it is very hard for deciding the price of the particular service offered. Spine. Orthopedics.
etc. Promotion includes advertising.helps that there are so many locations and specialities in Apollo hospitals. personal selling. They also sponsor frequent visits to the spastic society. Apollo promotes itself through the Community Initiatives viz • • SACH – Save a Childs Heart CURE – Extends preventive as well as rehabilitative cancer treatment to the economically backward. PROMOTION Promotion function of any service organization involves the transmission of message to present. Apollo does not normally undertake aggressive promotion. • • SAHI – Society to Aid the Hearing Impaired DISHA – Distance Health care Advancement Project Page 39 of 48 . To crease the clientele. past and potential customers. master health programmes and diabetes health checkups apart from annual health checkups offered to different companies. Apollo conduct camps in rural areas to give medical check ups at a reasonable price so that the rural people approach the hospital again in the future. a hospital may continuously introduce different health services like the acupressure clinic. old age homes. Customers need to be made aware of the existence of the service offered. Hospitals generally advertise in health and fitness magazines. they rely a lot on a favourable word of mouth. sales promotion and publicity. Thus a patient is reassured of his well being.
Accessibility refers to the ease and convenience with which a service can be purchased. The two major issues considered regarding the decision of a place are accessibility and availability of the service to customers. used or received. Factors influencing the placing decision are market size and structure by geographical regions. Madurai. Bhubaneshwar. A hospital must be ideally located and must be easily accessible to all. Delhi. local infrastructure. Bangalore. Service personnel play an important role in an organization which offers service. location of potentially attractive consumer segments. Apollo Hospitals has around 8500 beds across 53 hospitals in India and overseas. Kakinata. It is located in 15 different places across India which include Ahmedabad. Chennai. People are also an important element in the marketing mix. number and types of competitors in the region. Mysore Noida. Kolkata. good road access facilities and public transportation network. The behaviour and attitude of the personnel offering service will influence the customer's overall perception of the service. Availability refers to the extent to which a service is obtainable or capable of being purchased. Aragonda. Mauritius.PLACE It refers to contact point between the customer and the service provider. who gets the benefit of the service. PEOPLE The People component reflects the important role played by individuals in the provision of services. Hyderabad. Page 40 of 48 . used and received. Bilaspur. Customers are a source of influencing other customers by word of mouth. This element in the marketing mix leads to the identification of a suitable location.
There should be regular liaison with them at all times. Concessions should be given to the employee's near ones. paramedics. o Utilizing o Use of services of professional competent medical consultants.000 doctors. nurses. In a hotel. it is very important that the staff of the hospital is friendly and comforting. whereas in a hospital. Warm ambiences with efficient and cheerful staff help make the experience of the public a memorable one. Knowing what the employees want is very important. clinical staff and management professionals to manage over 8500 beds across 53 hospitals in India and abroad. the staff has to cater to the needs of sick. regular on-job training of employees to ensure continuous improvement in health care. where the clientele is happy.It is necessary that the staff in hospital are trained to offer quality patient care with human touch using state of the art technology. dedicated and loyal to the organization. depressed and an agitated lot. The objective of offering quality service to the patients can be attained by: o Motivating o Offering employees to be efficient. always wearing a smile. There are many other ways to motivate the employees. Apollo Hospital currently engages more than 19. the job of the staff becomes much easier. The management of Apollo Hospitals is continuously Page 41 of 48 . Motivation is not necessarily by giving high salaries. latest technology. Therefore. Along with this Apollo Hospitals has several courses along with research facilities to facilitate innovation. free from any kind of tension. There should be active participation of the employees in the activities of the hospital.
The Joining Phase It includes the following: • The arrival of the patient. the process is divided into three phases. Page 42 of 48 .involved in motivating the employees and ensuring that the best of services are offered to it customers. In a hospital. convert it and add value to the input and finally create an output. Process has only recently been given much attention in the service sector although it has been the subject to study in manufacturing for many years. 1. which sets a standard for action to take place and to implement the service. PROCESS Process is a set of activities that take an input. Processes are designed by blue a print.
the bill will be paid at the billing counter. • • Treatment – when the illness is treated with proper medication or surgery and so on. The Intensive consumption Phase It includes the following: • Diagnosis – where the consultant diagnoses the illness by making the patients undergo various tests.• Registration – where a patient has to make an initial deposit at the in-patient billing counter after which a file is opened in the patient's name to know the patient's medical history. the medication to be taken. The Detachment Phase It includes the following: • Discharge of the patient – a patient can be discharged from the hospital on the advice of the consultant • Payment – after the patient is discharged. Information about further actions – the consultant will instruct the patient regarding the diet to be followed. 4. 2. when to consult him again in the future and so on. 3. Feedback Page 43 of 48 .
Patients' suggestions are always welcomed. each department is a customer to another department. valued and considered and many times are very useful for improving the services of the hospital. it is noticed that each department serves the needs of another department. General Process Organization in a Hospital Finance Department Billing Purchase Department Stores Doctors Patients (External Customer) Nurses Within the hospital. for example. while at the same time it might be a supplier to another department. Page 44 of 48 . So in a way. the patient is requested to fill an evaluation form. which assists the hospital authorities to know the level of satisfaction derived by the patient. it each department is looked. the billing department serves of the finance department and so on. Each department is an "internal customer" or the other departments.At this stage. the purchase department serves the needs of the stores.
Right from requesting in formation pertaining to a particular query or ailment to providing feedback has been simplified by just a press of a button. In a way. Apollo Hospitals is NABH. it may seem as if each department is working as an independent unit rather than a team. This operation in itself involves very established procedures and documentation.Only when each unit of the hospital understands who their customers are and what their needs are. There are convenient of ways of making payments on line and even referring customers. Apollo Hospital believes in making the stay of its patients a memorable one by providing world class services. each department or unit should consider itself to be a service provider serving the needs of the customer department. It has been a major player in scripting the medical landscape of the nation. the world-over in many organizations that have used this concept. PHYSICAL EVIDENCE Page 45 of 48 . will the hospital develop basis for giving the best service in the most efficient way to the patient. However. In a superficial level. This is primarily because the group has continuously been at the helm of several gamechanging innovations in Indian health care. The largest achievement of the Apollo Group has been to take quality health care to across the length and breadth of India. it has found that this kind of a customer-supplier relationship helps to offer an important system of checks and balances and gives the organization a more focused customer orientation. NABL accredited and also has ISO 9002 award.
at much affordable price. A hospital has to keep in mind both the aspects of physical evidence that is essential and peripheral evidence. Apollo Hospital has been known for its quality health care services. Right from the reception one finds very cordial and comforting staff. Special care should be taken to maintain hygienic. warm and comforting because the clientele that goes to the hospital is usually disturbed or unhappy. Modern hospitals need to create a good ambience.It is the environment in which the service is delivered with physical or tangible commodities and where the firm and the customer interact. Physical evidence plays an important role in hospital services. Physical evidence particularly plays an important role in the hospital where the patients are already depressed or traumatized and a good atmosphere could make all the difference. Physical evidence offers customers means of evaluating the service. This is taken care of by the housekeeping department. The entire hospital should be centrally air-conditioned with good lighting. All the doctors should be offered with a well-equipped cabin. Apollo Hospitals conducts a rigorous site survey process as well Page 46 of 48 . Ventilation is taken care of by air-conditioning. assuring the healthy recovery with quality care from the staff. cleanliness and whole hospital must be well lit. It provides the services for all the ailments & diseases. The staff is trained to be understanding. The ambience plays an important role because when a patient walks into the hospital he immediately forms an opinion about the hospital. The staff follows a dress code to show professionalism and to maintain discipline. This can be developed through corporate relation programmes. It makes a huge impact on the customer. Corporate image plays in important role in terms of physical evidence. It is necessary for a hospital to be well organized and segregated into different departments.
they buy the time. telemedicine services. Apollo Hospitals Group takes into account the various aspects of marketing mix of services. The applications of marketing principles in the services sector are the main things in the services marketing. knowledge. When people buy services offered by a service provider in a true sense. promotes. In the services marketing. Promotion. Price. It incorporates all the seven P’s namely. Apollo Hospitals Group had become an integrated healthcare organization with owned and managed hospitals. and delivers goods and services to the customers. the providers are supposed to influence and satisfy the users. the company also makes available the services to support the business of healthcare. skill or resources. medical business process outsourcing. Place. diagnostic clinics. In addition. CONCLUSION Marketing is a function by which a marketer plans. Marketing the service is meant marketing something intangible. education and training programmes & research services and a host of not for-profit projects. By the start of the new millennium. clinical & diagnostic services. The whole working of the group is based on the basic elements of marketing. It is like marketing a promise.Product. It is the managerial process of managing the service. dispensing pharmacies and consultancy services. third party administration services and heath insurance. It has world class infrastructure and makes the stay of its patients comfortable.to take care of various parameters in all their hospitals. the group's service offerings include healthcare at the patient's doorstep. Process and Physical Evidence. People. Starting from super specialty services to premium prices to a coverage across the Page 47 of 48 . To enhance performance and service to customers.
Page 48 of 48 .globe to best promotional measures to highly qualified doctors and nurses to a well planned patient service process to finally the most comfortable and globally at par Infrastructure.