Fortis Healthcare Achieves Exceptional Growth in India
By Thomas | Published February 09, 2011
The hospital chain Fortis Healthcare has recorded consolidated net profits of Rs 34.5 crore (US$7.6 million) for the third quarter ending 31 December 2010 compared to Rs 21.74 crore (US$4.8 million) during the same period in 2009. This reflects a 58 percent improvement in year-on-year profit margins.
Total revenue climbed to Rs 371.43 crore (US$90 million) during the period – up from Rs 232.48 crore (US$80 million) on the previous year. Operating revenue for the nine months ending 31 December 2010 reached Rs 1067.2 crore (US$200 million) – a 75 percent year-on-year increase.
Fortis Healthcare has a network of 53 hospitals and more than 8000 beds for in-patient treatments in India. The healthcare provider’s strong third-quarter results in 2010 reflect Fortis’ continuing trend for year-on-year growth in recent years. All hospitals in the Fortis network reported growth during the October – December 2010 period, with an increase in revenue generated by higher patient occupancies.
The most notable growth was generated from the following Fortis hospitals located in: Malar, Chennai, Noida, Mohali, Vasant Kunj and Hiranandani.
Fortis reported substantial growth in key specialist treatments covering cardiac sciences,orthopaedics and neurosciences, with these segments growing by 41%, 105% and 104% respectively across the hospital network. Strong revenue gains were generated from the provision of renal sciences, pulmonology and gastroenterological health services. Fortis reported that over 12,000 cardiac procedures were carried out in the thirteen week period ending 31 December 2010.
Fortis’ corporate strategy has been to consolidate its presence across India with a commitment to reinforce its network of hospitals in tier-II and tier-III Indian cities. In addition to the sighting of Fortis hospitals in India’s main cities, the healthcare provider has established facilities in the more remote areas of Raigarh, Chhattisgarh, Moradabad and Uttar Pradesh. Fortis’ expansion and increased reach in India is compatible with its drive to provide quality private healthcare throughout the country. Currently Fortis is present in 15 tier-II and tier-III cities in India.
Recent developments by Fortis include the launching of new greenfield hospitals in Shalimar Bagh, New Delhi, Anandpur, Kolkata and Mumbai all of which received strong public backing.
“The Company’s financial performance in the last quarter has been outstanding and the robust results bear testimony to the ever-growing equity of the Fortis brand. Immediately following the launch of three greenfield hospitals in three metros in a month, a landmark in Indian healthcare space, we further expanded our footprint deeper into Indian cities, with hospitals being announced in Moradabad and Raigarh. Fortis continues to play the innovator role in the industry…..” said Mr Shivinder M Singh, Managing Director of Fortis Healthcare Limited in commenting on the financial results.
In additions to Fortis’ expansion across India, the healthcare providers has set-up Fortis C-DOC which is a dedicated service for the management of diabetes and endocrinological treatments in India.
Last year Fortis entered into a fierce bidding war with the Malaysian company Khazanah Integrated Healthcare Holdings for the acquisition of the Singapore based healthcare provider Parkway, but subsequently withdrew its interest; the acquisition would have augmented Fortis presence in Asia and increased its penetration of the Asian hospital network.
As the leading private healthcare provider in India, Fortis has committed itself to providing a high quality health service investing in state-of-the-art technology to ensure it continues to maintain its status in the healthcare market in this Asian powerhouse country. As part of this process, Fortis has strengthened its hospital network introducing advanced medical procedures such as treatments for bone marrow transplants.
In addition to meeting the demands for treating the massive indigenous Indian population, Fortis has established itself as a leading provider of medical and surgical procedures for the international market as India becomes a leading medical tourism destination. Fortis has built a sound reputation for meeting overseas patients’ health needs for a fraction of the costs normally required elsewhere – particularly western hemisphere nations. This has been a major contributor to the growth in Fortis’ profitability, with revenue from international business increasing by 180 percent in 2010, representing 6 percent of Fortis’ total revenue.
In addition to providing private healthcare to the more affluent element of Indian society, Fortis has been recognized for adopting corporate social responsibility programmes to meet the health needs of the under-privileged in the country.
Fortis Healthcare Limited