analysis of fortis healthcare

7/30/2019 Analysis of Fortis Healthcare

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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

analysis of fortis healthcare

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