Apollo hospitals

1. Presented By: Akshay S. Jalihal (Roll No. 06) Ashwini Dhage (Roll No. 13) Priyanka Selukar (Roll No. 37)

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 P rovision 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 c ontd .. 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

10. Thank You..