Apollo hospital, it's management philosophy, strategies, management issues, challenges faced by management and overcome activities with expansion plan and licensing.

1. Submitted by-
Umang Maheshwari

2. APOLLO HOSPITAL
• Founded in 1983 by Dr. Prathap C. Reddy
• India’s first comprehensive for profit hospital
• 2nd hospital in Hyderabad making rapid
progress towards profitability.
• Health Care:
High quality health care through large network of
doctors
Apollo’s 250 hospital by year 2000

3. • Prominent role in company
• It consist of private nursing homes
• Different income levels
• Hospital grew because of Dr. Reddy’s own
practices

4. MANAGEMENT PHILOSOPHY
• Medical personnel, medical technology, employees, value, and
hospitality.
• Apollo hired top-quality doctors in all medical specialties.
• It supported them with well-trained support staff, comprehensive
facilities, and the most advanced medical technology in the world.
• They set high standards for all aspects of patient care, including
non-medical ones, and stressed hospitality toward patients

5. • Regular training gave employees the ability to meet these
standards, and high pay, good benefits and a strong, team-
oriented culture helped motivate them.
• Basic management principles were: Respect for individuals
and Encouragement of individual growth, an open and
constructive organizational climate, Decentralized
management, and a personal rapport between top management
and all employees.

6. APOLLO HOSPITAL
MADRAS
• Founder - Dr. Prathap C. Reddy
• Established in 1983 as the first corporate hospital in
India.
• Served middle to upper class
• Main concern was advanced therapy and surgery for
complicated problems
• Early diagnosis- Early treatment- Early recovery
• 50 staff members for maintaining relation with patients
• Suggestion from staff to limit the admission

7. Specialties of hospital-
o Cosmetic Surgery
o Dentistry
o Diabetology
o Drug Addiction & Rehabilitation
o Emergency Services
o Endocrinology
o Ear, Nose and throat disease
o Gastroenterology
o Internal Medicine
o Nephrology and Urology
o Neurology and Neurosurgery
o Obstetrics and Gynecology
o Ophthalmology
o Orthopedics and Traumatology
o Pediatrics and Neonatology
o Physical therapy
o Psychiatry
o Radiology and Imaging

8. 5 Stars of Apollo
• Medical Personnel
• 120 consultant doctors
• Support services (24*7 lab and blood bank)
• Expert doctors of UK, US and Canada
• Library with key medical journals and online search system
• Medical conferences
• Specialists from abroad for training
• Apollo study about its value
• Newsletter

9. • Medical Technology
• Latest technology (Even MRI)
• Making doctors comfortable with equipments
• Enough Equipments
• High utilization
• Employees
• Motivation
• Culture
• Compensation

10. • Hospitality
• Patient’s need and expectations
• Premium service
• Employee training (Functional and
Behavioral)
• Value
• Better in comparison of competitors
• Pioneer in Surgery and bypass
• Mandatory HIV test

11. MANAGEMENT ISSUES
The relationship between consultant doctors and
administrators, and the hospital’s ability to
further both medical and business goals.
Equipment and facilities management laid bare
an essential tension between medical and
business goals

12. HYDERABAD
APOLLO HOSPITAL
Introduction:
• Opened in 1988 with 250 beds, 38 acres of
land, northwest of madras.
• Same facilities and services as madras hospital
except magnetic resonance imaging (MRI).
• Reddy worked hard to create same culture as
madras hospital.

13. CHALLENGES
• Location and Transportation
• Tension between medical and business goal.
• Competing private hospital and less
prestigious staff of consultants.

14. OVERCOME ACTIVITIES
Private Competitions:
• Free overnight accommodation on slow/festival seasons
• Unique services at low cost for corporations
• Promoted cardiac surgeries
Less famous consultants:
• More committed and full time team.
• Completed 247 bypass operations without any mortality
• Provide valuable education and sponsorship for the
lectures solicited to IMA.

15. Uncertain non-medical quality:
• Introduce CHANGE
• Six areas for re-engineering
Apollo Medical Centre:
• Content’s:
• Minor surgery and Heart test
• Full range of diagnostic test and simpler
treatment.
Make profit after 4th years of services.

16. EXPANSION PLAN
• In early 1995, Dr. Reddy and his family were
considering several options for expanding
Apollo.
• In addition to building more hospitals, they
were considering licensing the Apollo name,
and establishing India’s first health
maintenance organization.

17. LICENSING
• Dr. Reddy had created Indian Hospitals Corporation (IHC) as a
consulting group to help entrepreneurs build and manage new
medical facilities.
• IHC assisted its clients in market research, development planning,
project management, architectural design, equipment selection, and
staff recruitment and training.
• In certain ways, licensing was more attractive than building wholly-
owned facilities. Apollo would not risk large amounts of its own
capital or have to cover loses until facilities broke even.
• Licensing might not be the most profitable way to use Apollo’s
managers, though. Since Apollo (through IHC) would manage
licensed facilities, it would have to provide as many managers as for
wholly-owned ventures.

18. HEALTH MAINTENANCE
ORGANIZATION
• The Apollo health maintenance organization would be
the first HMO in India. Modeled on HMOs in the
United States, it would provide all medical care as
needed to members in return for a fixed, annual
premium.
• The Apollo HMO initially would accept only corporate
clients who bought health coverage for their employees,
but after two years it would start accepting individuals.
• The Reddys believed that Apollo’s reputation for
quality and the promise of lower costs would be
powerful selling points. Several large corporations had
already expressed serious interest in joining the HMO

19. CONCLUSION
• Facing a stage filled with paper-mache columns representing Apollo
hospitals of the future, Dr. Reddy looked to his next year with great
anticipation, but he and his daughters faced complicated choices.
• In 12 years, Apollo had built a valuable name and network of friends
in industry, finance, and government. Now, the Reddys would try to
expand their business and bring Apollo-quality care to even more
Indians.
• Licensing would spread Apollo’s influence and recognition more
quickly than building wholly-owned facilities. Working with local
partners would enable Apollo to share financial risk while
maintaining quality.
• Attaching the Apollo name to the HMO would mean gambling one
of the company's most important assets.
• Although Apollo hospitals aimed to keep their patients healthy,
they made money when patients underwent procedures, either
preventative or curative.