I have about 10 hospital takeover offers from the US and similar ones from UK, but I am waiting till a good product comes up.
Apollo Hospitals Group, started in 1983, is Asia’s largest healthcare group today. Having pioneered the trend of corporate healthcare providers, the group owns and manages 41 hospitals in the country and has found a strong foothold in the global healthcare market, too.
The group, with a presence in almost all healthcare segments, has many firsts to its credit —among others, the first health city, first JCI accreditation and first international management consultancy unit.
More recently, the hospital group has entered the health insurance business and is now strategising to take over some hospital abroad. Pratap C Reddy, founder chairman, Apollo Hospitals Group, spoke to Archana Shukla. Excerpts:
Are you still bidding for UK’s Capio Group of Hospitals?
No, we have moved out of the race for Capio, as they had sold the real estate for a very high price. This translates into a much higher operational expenditure for us; the lease rental that we had to pay was high, as well. There, the risk would also have been more and it did not look like a profitable venture, so we decided to move out of it.
So, what is the plan of action now?
I have about 10 hospital takeover offers from the US and similar ones from UK, but I am waiting till a good product comes up. I am interested in a group of nice hospitals at a low cost. The venture should be advantageous to the group’s business and not be a liability. I can assure of the best quality of medical care that our group can provide, but the deal should be profitable to us as well.
Can you tell us something about your Mumbai expansion plan?
We have some good plans for the city of Mumbai and plan to provide 2,000 beds in about two years’ time. We have already taken up land in the Navi Mumbai and Thane regions and are in the project stage now. We plan to build 4-5 facilities with 400-450 beds and bring Apollo’s expertise to the city in a big way.
What are the products Apollo DKV is planning?
Being a new standalone health insurance company, Apollo DKV has initially designed some contemporary health insurance products. We have filed a couple of them with the Insurance Regulatory and Development Authority and are waiting for the approval. We plan to roll out the products by November this year.
Next, we are looking at some disease-specific products. As we have successfully-running disease management programmes for asthma and diabetes, we may target these segments for the insurance products. Products for coronary artery diseases will be next on the list.
Besides, understanding the diverse needs, Apollo DKV is planning different insurance products for the urban, rural and corporate populations. For the urban population, we are developing products to include all — doctor’s consultation, co-pay, outpatient visits and post-illness coverage. In the corporate segment, the products will include preventive health coverage, customised for corporate groups.
Are you planning to invest in Naresh Trehan’s Med City in Gurgaon?
Professionalism is different from investment. Dr Naresh Trehan is a great professional, the best in his field, and that was the reason we got him. However, we have not yet thought about investing in his project.
How does it feel to be leading one of the world’s largest hospital groups?
It feels nice, as everyone is talking about Apollo. We have extended our reach in all possible areas and I am satisfied with the kind of work we are doing. I feel that the story has just begun.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}