Apollo Gleneagles Hospitals: The Next Steps for Growth

In January 2016, the chief executive officer of Apollo Gleneagles Hospitals (AGH) was reflecting on the 12-year journey that had led to the establishment of AGH as the strongest pillar of holistic healthcare in Eastern India. AGH brought together the best infrastructure, equipment, people, and systems to serve the people of Eastern India with end-to-end tertiary healthcare. The institution grew with a continuous drive for expanding knowledge, introducing the latest technologies, and building a culture of compassion and care. However, AGH’s success had led to a shift in focus, drawing the attention of several leading tertiary care hospitals to the untapped healthcare delivery potential in Eastern India. This shift meant increased competition for AGH and higher expectations from its customers. AGH wanted to maintain its leadership position and better understand the organization’s future challenges and focus areas. Which business model would best serve the people of India: expanding the current location or launching a multi-location facility? How could AGH maintain its current high level of recognition, expertise, and availability?

The case is designed to present the business model challenges, decision dilemmas, and strategic choices made by a private healthcare institution targeting the end-to-end tertiary care needs of a diverse population in an emerging economy. This case has been prepared for MBA and executive education courses in general and healthcare management. After completing the case, students will be able to:<br><ul><li>identify the key features of value-based, integrated healthcare delivery for providing tertiary care in emerging economies;</li><li>understand the application of different tools and techniques for assessing and refining a strategy (i.e., 4Cs, five forces analysis, value chain analysis, and business model design and implementation);</li><li>provide an analytical approach for evaluating the success of a clinical integration effort along numerous dimensions (strategic, organizational, operational, and financial);</li><li>identify the healthcare delivery challenges associated with offering integrated tertiary care in India; and</li><li>understand the decision dilemmas and strategic choices involved in designing the growth model.</li></ul>

• Tertiary care, strategy , business model, healthcare, hospital