Overview of healthcare industry in

India
Two major components- Private sector & public sector
Became one of India's largest sector
The industry comprises of Hospitals, medical devices, clinical trials, outsourcing, telemedicine, medical
tourism, health insurance and medical equipment.
Growing at tremendous pace
Healthcare sector growth trend in India

Market break-up by revenues

Of
total healthcare revenues in the country hospitals account for
71%

 Govt. or public sector is focused on providing basic healthcare facilities

Private sector provides majority of secondary, tertiary and quaternary care
institutions with a major concentration in metros, tier I and tier II cities
Around 70% of Indias population lives in rural areas, to cater their needs
govt. has taken some initiatives major initiatives underNational Health Mission(NHM)
Rogi Kalyan Samiti (Patient welfare committee) / Hospital Management
Society
Janani Suraksha Yojana(JSY)
National Mobile Medical Units (NMMUs)- for un-served areas
National Ambulance Services(in 30 mins)
Janani Shishu Suraksha Karyakram (JSSK)
Rashtriya Bal Swasthya Karyakram (RBSK)- birth disabilities for 0-18 years

 Still there is huge gap between demand and supply

0.9 beds are available per 1,000 population, far below
the global average of 2.9 beds
The current doctor-population ratio has been worked out
to be approximately 1:1700
India plans to establish some 200 new medical colleges
in the next 10 years to meet the projected huge
shortage of 600,000 doctors.

Case facts
Chairman- Dr. Prathap C. Reddy
First Apollo hospital inaugrated in 1983 in Chennai
By 2003 this group emerged as single largest private health care
group in Asia.
Managing 33 hospitals with 6400 beds treating patients from over
50 countries.
Tertiary care market- 14% which is 35% of total private tertiary
care
Apollo group comprises of Apollo hospitals enterprise limited(AHEL)-Publicly listed, provides
tertiary care

Continue
AHEL consist of-(Foreign inv-41%, Apollo-32%)
Apollo health and lifestyle limited(AHLL)- Wholly-owned
subsidiary, started franchising primary care
Apollo Health Street ltd.(AHSL)- Medical business process
outsourcing, loss making but expected to become profitable
Global Nursing Program(GNP)- Train & place nurses

First international project Colombo hospital Shares- Apollo(47%), local investors(35%), rest held by IFC

Pharmacy Network and International consulting &

projects
43% of AHELs revenue comes from pharmacy(70% from
standalone)
Apollo consultancy took two projects Transition Management- design & build facilities
Operation Management- Recruit & train hospital staf
33% revenue comes from international assignments

Competitors & Financial Performance

Manipal Group(pvt-7 govt-7)
Fortis Healthcare Ltd.
Wockhardt Hospitals Ltd.
From 2000-04 Income grew from 2.7 billion to 4.9 billion
Mean operating & net profit margin- 22.3%, 7.92%
Industry average- 20% and 4%

Strategic Operations
Integrated Healthcare Delivery Network(IDN)
International hospital management
Medical Tourism