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Turnaround of a Sick Hospital

Apollo Gleneagles Hospital

Situation - The hospital was established in 1988 in Kolkata, the largest city in East India. It was characterized by delayed construction, cost overruns and low levels of activity, limited services and lack of well trained medical professionals. It had a lackluster financial performance with an EBITDA margin of -4%.

Intervention - In 2002, Apollo took over the management of the hospital. Apollo undertook a number of initiatives to turnaround the hospital, the major ones being
  • Increased bed capacity by 380% - Added 239 beds by November 2003, 17 months after assuming ownership
  • Restructured the existing debt with low cost borrowings and Developed Centers of Excellence in Cardio thoracic surgeries, Orthopedic surgeries, Oncology, Neurosurgery and others
  • Increased consultant strength substantially
  • Integration with primary clinics in high density residential areas and with third party insurance companies
  • Installed comprehensive telemedicine networking facilities;
  • Implemented continuum of care guidelines and protocols;
The Impact - Apollo Gleneagles, Kolkata emerged as an advanced and profitable tertiary care hospital attracting over 20% of its patients from other countries. The hospital is certified by the Medical Council of India for Clinical Excellence and Processes. Net revenues increased by 3 times in a period of 3 years and the EBITDA margins improved from -4% earlier to 23%.
Our Services - Hospital Consultant, Healthcare Consulting, Medical Equipment Planning, Hospital Business Plan
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