Business Case Studies, Growth Strategies Case Study, Fortis Healthcare Limited

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Case Title:

Fortis Healthcare Limited : Corporate Hospital's Growth Strategies in India

Publication Year : 2008

Authors:  Girija P, Joel Sarosh Thadamalla

Industry: Health Care

Region:India

Case Code: GRS0188A

Teaching Note: Available

Structured Assignment: Available

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Abstract:
Since its establishment in 2005, Fortis Healthcare Limited (FHL), a New Delhi-based corporate hospital, gained remarkable brand reputation in a short span of time. It operated through multi-specialty hospitals, providing healthcare in key specialty areas like cardiac care, renal care, neuro-sciences, orthopedics, etc. Besides, it operated a boutique style hospital, Fortis La Femme - focusing exclusively on women's health and maternity care. To provide quality service, FHL differentiated itself with its contemporaries in India by adopting unique hospital design, services, and programmes that comply with international standards. The demographic shift and higher longevity of Indian population offered tremendous opportunities to many private corporate hospitals. To tap such lucrative opportunities, FHL followed hub-and-spoke model. To counter competition, FHL, going a step further, started acquiring other hospitals. Also, it planned to integrate backward and set up medical and nursing college in addition to research labs. The case discusses whether FHL would be able to achieve leadership position in a highly fragmented Indian healthcare sector by means of inorganic growth.

Pedagogical Objectives:

  • To assess the opportunities and challenges in the burgeoning Indian healthcare sector
  • To evaluate the feasibility of the growth strategies of FHL
  • To examine the sustenance of private corporate hospitals in India in the midst of competition.

Keywords : Indian Healthcare Sector; Private Corporate Hospitals in India; Inorganic Growth Strategy; Hub-and-Spoke Business Model; Fortis Healthcare Limited; Lifestyle Diseases; Mergers and Acquisitions; Multi-specialty Hospitals; Fortis La Femme; Growth Strategies Case Study; Ranbaxy Limited; Escorts Heart Institute and Research Centre Limited (EHIRCL); American Institute of Architects (AIA); Greenfield Investment; Indo-Italian Chambers of Commerce and Industry (IICCI); Institute of Enhanced Leadership Development

Contents : 
Evolving Healthcare Market in India: Genesis of Corporate Hospitals
Fortis Healthcare Limited: On the Growth Path
FHL’s Corporate Structure and Hospital Network
The Challenges Ahead
Comparison of Some Key Indicators
Hospitals and Dispensaries in India (2002)
State-wise Inpatient Distribution in Public and Private Hospitals (2002)
State-wise Average Hospital Charge per Inpatient Day
FHL Human Resource Pool

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