An Analysis of Fortis Hospital

Group No. 11
Kavinder I Rajiv I Sanjeev I Kaushik I Kamaljeet I

INTRODUCTION
o Fortis Healthcare Ltd one of the leading private healthcare companies in 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.

Growth path

PEST Analysis
o 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

Global Environment and Technological environment

Overburdened health infrastructure & high costs in the West Indias low cost of medical care and Quality service

PORTERS ANALYSIS
o 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 of Substitutes
Alternative Medicines

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-ayear 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

Vision
To create a world-class integrated healthcare delivery system in India, entailing the finest medical skills combined with compassionate patient care World class Quality 1 2 Super specialty 3 Linked with larger network 4 Patient Centric 5 Hub and Spoke Model

Operating Goals
To improve primary care
Improving the core services that Fortis provide Standardizing basic processes

To develop alternative services

Providing non existent services, on the basis of need

Fortiss Strength
Pr t y a axy a ar ra a ickly Easy acc ss t capital Hiri g f Us st ct rs F rtis payr ll t ch l gy. al practic s

f lat st i f r ati Q ality c liv ry.

F c s s rvic F c s

tr l /

st i t r ati

sp cialty chai

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

Fortis Business Strategies

Differentiation Forward Integration Advertising thru social networking sites Better utilization of resources (Hub & spoke model)

Differentiation focus

Forward Integration
Entry into retail pharmacy business

Advertising thru Social Networking Sites

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

Corporate Strategy
Plan 2012
Exceed $ 1 Billion 10,000 bed Count
The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again.

Market Development Implementation through

Mergers and Acquisitions
Escorts in 2005 Wockhardt hospitals 2009 25% in Parkway

International Partnership

Implementation
Culture
Share Best Practices of acquisitions

Structure
Flat

Financial result
Fortis reported 329.6% rise in its PAT

Business Evaluation
Hospitals
Star

Old age home

Question Mark

Pharmacy
Question Mark

Recommendation
More Focus required on Organic Growth Too much focus on specialty Market extension in tire 2 and 3 cities Smaller Hospitals

Thank You