Apollo Hospitals started in 1983 in Chennai and has since expanded to a 43 hospital network with 7500 beds, making it the largest healthcare group in Asia. It offers a wide range of services from cardiology and orthopedics to liver transplants. To market medical services to American consumers, Apollo Hospitals would highlight its significant cost advantages over US healthcare, with some procedures up to 70% cheaper. It would target the 50 million uninsured and underinsured Americans through websites, call centers and partnerships with US hospitals for postoperative care. Key strategic issues include addressing the mounting complexity of medical tourism and determining which types of medical tourists are most likely to travel to India for treatment.

1. Marketing Medical Services at Apollo
Hospitals to the American Consumer
Group 3B

2. About Apollo Hospitals
 Started in 1983 out of Chennai
 Presently has a 43 hospital network (7500
beds)
 Largest healthcare group in Asia

3. About Apollo Hospitals
 Cardiology
 Orthopedics
 Spine Surgery
 Oncology
 Nephrology
 Critical Care
 Cosmetic Surgery
 Liver Transplant
 Bone marrow transplant

4. Description of Service
 First contact through website/call centre/local presence
 Direct contact with surgeons on registration
 Travel arrangements
 Hospital admission (staff pickup at airport)
 Medical procedure
 Comprehensive reports on discharge
 Tie ups with US hospitals for post treatment care

5. Decision to go global

6. Target Market
750,000 Americans travelled abroad to seek
medical care in 2007
2007 1
2008
45%
Projections of number of medical
2
2009 tourists originating in USA
3.5
2010 6.5
2%
20
2011 8
2012 9.5
27% 15
2013 11
2014
10 12.5
2015 13.5
26% 5
2016 15
m
N
o
n
b
u
e
s
r
2017 16
l
i
0
2006 2008 2010 2012 2014 2016 2018
Year

7. SWOT analysis – expansion to USA
High Cost advantage in
50m uninsured
India.
Americans.
Eg. Open heart surgery
Post Operative 20% of the 250m insured
costs about $150,000 in
convalescence do not qualify for certain
(USP in India) USA and $14000 in
procedures.
Thailand as against $7000 in

8. Analysis of threats and weaknesses

9. Strategic Issues

10. Strategic Issues
Types of Medical
Tourists likely to
enter India
Mounting Complexity

11. Recommendation (Market Segment)

12. Action Plan - Promotion

13. Action Plan - Place

14. Action Plan - People

15. Action Plan - Process

16. Action Plan – Physical Evidence

17. Pricing
Procedure USA Apollo Hospital Percentage of US
Cost
Bone Marrow $250,000 $70,000 28%
transplant
Liver transplant $300,000 $70,000 30%
Heart Surgery $30,000 $8,700 29%
Orthopedic Surgery $20,000 $6,500 30%
Cataract $2,000 $1,350 65%
Dental
Procedures
Metal Free Bridge $5,500 $600 10%
Dental Implants $3,500 $900 25%
Porcelain Metal $3,000 $600 20%
Bridge
Porcelain Metal $1000 $100 10%
Crown

18. References
 Deloitte study on Medical Tourism (Produced by Deloitte Centre for Health
Solutions)
 2008 Survey of Health Care Consumers (Produced by Deloitte Centre for
Health Solutions)
 Medical Tourism: The Ultimate Outsourcing by Joseph Marlowe, Senior Vice
President, and Paul Sullivan, Assistant Vice President, AON Consulting
 Mapping the market for medical tourism by Tilman Ehrbeck, Ceani Guevara,
Paul Mango (McKinsey Quarterly)
 Medical Tourism: Implications for Participants in the US Health Care System
by David Williams and John Seus (MEDPHARMA PARTNERS LLC &
MEDTRIPINFO.COM)
 Curing the World: An Opportunity for Medical Tourism in India (Dessence
Consulting)
 The key issues and challenges in medical tourism sector in India (A Hospital
perspective) Dr. R Gopal, Director, Dr. D. Y. Patil Institute of Management
Studies, Navi Mumbai