2. Apollo Hospitals Enterprise Limited (AHEL)
Apollo Hospitals Enterprise Limited (AHEL) is a leading
private sector healthcare provider in Asia
It was incorporated as a Public Limited Company in the
year 1979
AHEL owns and operates a network of leading primary,
secondary and tertiary hospitals and clinics across India
It consists of :
Apollo Group of Hospitals
Apollo Global Projects Consultancy
Apollo Health and Lifestyle Limited
Apollo Pharmacy
Apollo Hospitals Education and Research Foundation
Apollo Insurance Company Limited
Apollo Reach Hospitals
3. The Apollo Group of Hospitals
Capacity
49 hospitals with total bed capacity of 7,946 beds as on June
30, 2012
36 owned hospitals including JVs/ Subsidiaries and
associates with 5,908 beds and 13 Managed hospitals with
2,038 beds
Of the 5,908 owned beds, 5,218 beds were operational and
had an occupancy of 74%
The total number of pharmacies as on June 30, 2012 was
1,357
Financial Performance
Q1FY13 Consolidated Revenues of Rs. 8,813 million (up
21.8% yoy)
Q1FY13 Consolidated EBITDA of Rs. 1,480 million (up 24.0%
yoy)
4. Apollo Expertise
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. Some of the health procedures are-
Total Knee /Hip Surgery Replacements
Birmingham Hip Resurfacing Procedure
Liver, Multi-Organ, and Cord Blood Transplants
Coronary Angioplasty
Stereotactic Radiotherapy and Radio surgery
Cosmetic Surgery
Bariatric Surgery - laparoscopic
Laparoscopic Hernia Repair
Laparoscopic Adrenalectomy
Cardiac Surgeries
5. Porter's Five Forces Analysis
The threat of new entry is quite high: if anyone looks as if they’re
making a sustained profit, new competitors can come into the
industry easily, reducing profits
Ex.- Fortis , Max, Escort , WOCKHARDT and DUNCANS
GLENEAGLES INTERNATIONAL
• Competitive rivalry is extremely high: if someone raises prices, they
will be quickly undercut. Intense competition puts strong downward
pressure on prices
• Buyer Power is strong, again implying strong downward pressure on
prices
• There is some threat of substitution.
Ex Telemedicine or shifting to other medicine like Ayurveda or
natural care
Unless it is difficult to find some way of changing this situation, this
looks like a very tough
6. SWOT Analysis
Opportunities
India is emerging as a major player in this industry, because of
its high population
As per the IRDA(Indian Regulatory and Development
Authority), only 10 percent of the market potential has been
tapped till date and market studies indicate a 35 percent growth
in the coming years
Today, people are spending more on healthcare and preferring
private services to government ones
Hospitals in India are running at 80-90% occupancy
Threats
Medical equipment accounts for 40-45% of the total
expenditure in hospitals
The migration of skilled technicians and nursing personnel to
developed countries
There could be a shortfall of over 450,000 doctors in the year
2012
7. SWOT Analysis Contd..
Strengths
Seamless delivery of services at every level of care – primary, secondary
and tertiary
4 JCI accreditations across all specialties, the first in the country to do so
Quality programmers are registered by the Indian Council of Medical
Research, ISO 9002
Provision of high-quality healthcare at affordable rates
Availability of sophisticated medical equipment, such as the PET-CT scan,
320 Slice CT Scanner, Cyber knife
Weaknesses
High attrition rates among the nursing workforce to Western countries and
competitors due to higher salaries and perks
The rising costs of healthcare delivery makes majority of the private
hospitals expensive for a normal middle-class family
8. Some Suggestions for improving the position
of the Apollo hospitals
Typically large hospitals with approximately 500 bed capacity takes
about 9-10 years to break even whereas super-specialty hospitals
with about 100 beds take about 6-7 years to break even. Therefore,
going in for superspeciality hospitals seems to be a more viable
option today
Hospitals could also generate revenues from medicines if they are
supplying them in-house
Health Plan packages can be provided by hospitals to family and
corporate. For example Family Health Plan Services (FHP), a
subsidiary of Apollo Hospitals does health management of
employees of its clients
9. Some Suggestions for improving the position
of the Apollo hospitals contd..
Apart from preventive healthcare, stress management programs
could be provided. For example ,”Effective Stress Management
Programme” offered by Wockhardt Hospital. This programme
provides a medical perspective of stress and is conducted by a
medical professional
Hospitals can become integrated healthcare systems i.e. when
medicines, food services, laundry and linen etc will become
"purchased" services. These third-party operations will increase the
profit margins.
Mergers could be used for synergy of skills - i.e. to help the merged
organizations benefit from one another's individual strengths by
applying them across the board. It also helps them to make joint
investments in branding or information technology and also to react
effectively to the changed market forces
