analysis of fortis healthcare
TRANSCRIPT
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An Analysis of Fortis HospitalGroup No. 11
Kavinder I Rajiv I Sanjeev I Kaushik I Kamaljeet I
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INTRODUCTIONo
Fortis Healthcare Ltd one of the leading private healthcare companiesin India
o The company has a network of 28 Hospitals, Satellite Centers and Heart
Command Centers with capacity of 3300 beds
o These include multi-specialty hospitals as well as super-specialty
centers
o Provide tertiary and quaternary healthcare to patients
o Target of pan India presence with bed strength of 6000 through 40
hospitals by the year 2012.
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Growth path
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PEST Analysiso Political / Legal environment:
Lower Public Expenditure Private Investment
o Economic Environment
Growing incomes
Significant investment opportunities for private sector
o Socio-cultural Environment
Increased life expectancy and an ageing population
Shift to lifestyle-related diseases to drive higher healthcare spends
Higher Population and Literacy
o Global Environment and Technological environment
Overburdened health infrastructure & high costs in the West
Indias low cost of medical care and Quality service
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PORTER S ANALYSISo Buyers/Customers Power
Demand is Exceeding Supply Medical Tourists Reducing Dependence on Local Customers
o Suppliers Power
Equipment Players Competing on Price
o Rivalry among Competitors
Increasing Competition
Low Competition from Public Sector
o Threat of New Entrants
Encouraging Government Reforms
Barrier for Foreign Firms
o Threat ofSubstitutes
Alternative Medicines
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Opportunities & Threats posed by
external environment
o Medical Tourism 1,80,000 patents came to India for treatment in 2004
Estimated at US$ 350 million in 2006, predicted to become a US$ 2 billion-a-
year business opportunity by 2012
o Huge market opportunity
. India has 60 doctors per 1000 people, as compared to Chinas 106 and
Australias 247
Untapped rural areas
o Slow adaptation of IT
o Emergence of China as new low cost and quality healthcare
destination
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Vision
To create a world-class integrated healthcare
delivery system in India, entailing the finest
medical skills combined with compassionate
patient care
1 World class Quality World class Quality
2 Super specialty Super specialty
3 Linked with larger network Linked with larger network
4 Patient Centric Patient Centric
5 Hub and Spoke Model Hub and Spoke Model
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Operating Goals
Improving the core services that Fortis
provide Standardizing basic processes
Improving the core services that Fortis
provide Standardizing basic processes
To improve primary care
Providing non existent services, on thebasis of need
Providing non existent services, on thebasis of need
To develop alternative
services
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Fortiss weakness
Complicated corporate structure
Highly capital intensive investment
High fixed costs and high operating leverage
Too much focus, makes it vulnerable to adverse effect of changing
environment and technology
Inorganic gro th might lead to lo uality standards
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Differentiation focus
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Forward Integration
Entry into retail pharmacy
business
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Advertising thru Social Networking Sites
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Hub and Spoke Model
Each hub anchors a
region or city
Spokes hospitals are
independent entity
Clinical expert from hub
hospital provide
leadership to the spoke
hospital
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Corporate Strategy
Plan 2012
Exceed $ 1 Billion
10,000 bed Count
Market Development Implementation through
Mergers and Acquisitions Escorts in 2005
Wockhardt hospitals 2009
25% in Parkway
International Partnership
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Business Evaluation
Hospitals
Star
Old age home Question Mark
Pharmacy
Question Mark
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Recommendation
More Focus required on Organic Growth
Too much focus on specialty
Market extension in tire 2 and 3 cities
Smaller Hospitals
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Thank You