Fortis Healthcare Limited

Submitted To:
Prof. Rajeev Kamble
By:
Shivang Misra 2010217
P N V Sriram 2010231
V Sriram 2010247
Hardik Sutariya 2010272
For
Marketing Management II
PGDM 1st Year, 2nd Trimester
Project
2010-12

The project deals with the Marketing Mix (4P’s of Marketing) of Fortis Healthcare Limited, a service organization which
has considerably gained the trust and confidence as a quality healthcare service provider.
Marketing Management Project

Table of Contents
Introduction ..................................................................................... 3
Product Strategy............................................................................... 4
Place Strategy ................................................................................. 10
Pricing Strategy .............................................................................. 14
Promotion Strategy ........................................................................ 17
Conclusion ...................................................................................... 20
References ..................................................................................... 20
Acknowledgement ......................................................................... 20

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Fortis Healthcare Limited

Introduction

Since its establishment in 2001, Fortis Healthcare Limited (FHL), a New Delhi-based
corporate hospital, gained remarkable brand reputation in a short span of time. It operated
through multi-specialty hospitals, providing healthcare in key specialty areas like cardiac
care, renal care, neuro-sciences, orthopaedics, etc. Besides, it operated a boutique style
hospital, Fortis La Femme - focusing exclusively on women's health and maternity care. To
provide quality service, FHL differentiated itself with its contemporaries in India by adopting
unique hospital design, services, and programmes that comply with international standards.
The demographic shift and higher longevity of Indian population offered tremendous
opportunities to many private corporate hospitals. To tap such lucrative opportunities, FHL
followed hub-and-spoke model. To counter competition, FHL, going a step further, started
acquiring other hospitals. Also, it planned to integrate backward and set up medical and
nursing college in addition to research labs.
Fortis Healthcare is engaged in providing the latest in internationally recognised medical
care to patients with a variety of ailments and medical conditions.

The Network of Fortis consists of Super Speciality Hospital Hubs that concentrate on one or
more specialities. These hospitals are interconnected to a larger network of multi-speciality
hospitals that ensures patient access to expert care for any speciality. This unique network
architecture provides expert care to patients and a level of confidence in receiving the latest
medicines in offer.

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Product Strategy

Telemedicine
Fortis Healthcare has built a tele-medicine network, which connects each of its facilities, so
expert care is never out of reach. In addition, Fortis Healthcare facilities are also working
with both private and public partners in the Indian Healthcare industry to provide Super
Speciality and quality healthcare services.

Fortis Healthcare provides services covering ICU Management, ER Management, OPD

Management, Radiology Reporting, Pathology Reporting as well as Training and Education
Opportunities.

Utilising strong HIS backbone, and PACS technology, Fortis is able to seamlessly transmit
patient information in a secure and confidential environment. The use of tele-medicine has
provided a much-needed boost to the Indian Healthcare sector. It has also allowed their
network to expand its presence by extending quality healthcare treatment to the remote
areas of Northern India as well as overseas.

The services that Fortis provide are in two fold

 Diagnostic and Non-Diagnostic Services :

o Preliminary or Final interpretations for
 Nighthawk services
 ER coverage
 Second Opinions
 Confirmation Consults
 Sub-speciality services
o Processing, Rendering and Transcription Services
Detailed Services
 ICU Service
o Thrombolysis
o Decisions for Cardioversion and emergency ECG administration and interpretation
o Medical Rounds
o Acute management of Myocardial Infarction and other medical emergencies
 Emergency Activities :
o Immediate Intervention Advice
o Emergency Consultations
 Outpatient Activities :

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o Video Consultations
o Psychology Consults
o Outreach programmes
o Health Camps
 Radiology Activities :
o CT Scans
o MRI
o Ultra Sounds
o X-Ray
o Nuclear Medicine Studies
o Any Digitized Image
 Pathology Activities :
o Histo-Pathology work
 Training Activities :
o In-house training
o Continuing Medical Education Programmes

Corporate Services
Healthy employees contribute to a healthy business. The healthcare delivery services in
Fortis’s top hospitals are specially designed to suit employee needs. All patient records are
accessible at all its hospitals across India so that employees can access healthcare services at
the centre most convenient to them, choosing from a wide network of its group hospitals.

Fortis offer a wide range of products and services to suit its company's needs.

1. OPD Services - The network of top Fortis hospitals in North India offer special packages to
corporate employees and their dependants on the OPD facilities listed below:
 Doctor consultations
 Pathological investigations
 Radiological diagnostics such as X-Rays, CT Scan, MRI, Ultrasound, Mammography
 Non-invasive cardiology like ECG, Echo, TMT, Holter etc.
 Neurology investigations such as EEG, EMG etc.
 Physiotherapy

2. In-patient Admissions (IPD-related services) - Employees of empanelled corporate are

given special offers on all multi- specialty procedures/surgeries and on room rent.

3. Ambulance Facility - This facility can be availed of in times of emergency. Dependants of

members may also be eligible for these facilities.

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4. Health Awareness Lectures/ Workshops – Awareness workshops and sessions are

organized by eminent faculty members on diverse topics at various hospital units as well as
the corporate premises with the intention of promoting a sense of well-being and fitness
among corporate personnel.

5. Executive Health Checkups

6. Health Check Camps

7. Blood Donation Camps

The Fortis Group is empanelled with a number of top corporates and multinational
companies (MNCs), Public Sector Units (PSUs), Government Bodies/ Institutions, Ministries
under the Government of India, Insurance Companies and Third Party Administrators
(TPAs). Many of these clients have chosen Fortis has their preferred healthcare provider.
The employees of these empanelled clients are given special offers on Preventive Health
Check- up programmes, multi-specialty procedures/surgeries and medical management
services. This facility can be availed of in times of emergency wherever and whenever
needed. All dependants of employees at the empanelled organization may also be eligible
for these facilities.

Business Strategy
Based on the Value chain it can be ascertained that primary services of Fortis are diagnostics
and emergency etc but it has to differentiate itself by providing specialized services with a
focus on high Margin medical facilities which cater to:

a. Cardiac Issues
b. Knee replacement
c. Neurological Sciences

In fact Fortis has acquired special status in terms of Cardiac issues. Fortis Healthcare Limited
today runs amongst the largest Cardiac Program in the world with over 6000 surgeries, 5000
Angioplasties and 14000 angiographies on an annual basis.

And in this way Fortis differentiates itself by providing a narrow focus in terms business
activities and providing those services at a high costs.

And based on its business strategy it has developed its core companies.

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Fortis hospitals include multi-speciality hospitals and Centres of Excellence providing tertiary
and quaternary healthcare in key speciality areas like:
Cardiac care
Orthopaedics
Neurosciences
Renal Care
Pulmonology & Thoracic surgery
Diabetic care
Cosmetic surgery & many more

Departments & Specialties

Fortis Group of Hospitals is committed to provide you with a comprehensive range of
tertiary and secondary care services backed by state-of-the-art technology and trained
clinicians.

CENTRE OF EXCELLENCE

Heart Care
Brain & Spine Care
Bone & Joint Care
Minimal Access Surgery

ASSOCIATE SPECIALITIES

Andrology and Urology

Cancer centre
Dental
Diabetology & Endocrinology
ENT
Foetal medicine
Gastroenterology
Gynaecology
Liver Transplantation and Digestive Diseases
Nephrology

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Obesity Surgery
Ophthalmology
Paediatrics
Psychiatry
Respiratory Diseases
Surgical Oncology
The quality of healthcare services at its group hospitals in India is at par with the best
centres anywhere in the world at a fraction of the cost in US, UK and Canada. In fact they
are already getting a number of patients from UK, USA Canada and Middle East and they
have all gone back very happy with their high quality services at very low cost.

Short Stay Surgery Programme

Short stay surgeries are designed to make patients stay at the hospital as short as possible.
Advances in Medical technology and adequate skilled doctors have made this possible. This
is a unique offering that requires high levels of expertise and protocol that enable patients
to walk out of surgery in just a couple of days.

Short stay Surgeries have grown in popularity due to the recent advances in improved
technology. Fortis Hospitals (A Network Hospital of Fortis), Cunningham Road, Short Stay
surgery centres often allow patients to get surgeries done much faster which results in
earlier recovery time.

Nephrology
Conditions treated under General Nephrology at Fortis Hospitals

 Acute renal failure, a sudden loss of renal function

 Chronic Renal Failure is irreversible kidney failure. The causes for chronic renal
failure are diabetes mellitus (the most common cause), hypertension, long-term
usage of painkillers, certain genetic diseases.
 Chronic kidney disease, declining renal function, usually with an inexorable rise in
creatinine.
 Hematuria, blood in the urine.
 Proteinuria, the loss of protein especially albumin in the urine.
 Chronic or recurrent urinary tract infections.
 Hypertension that has failed to respond to multiple forms of anti-hypertensive
medication or could have a secondary cause.

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Uro Oncology: Cancers of the Kidney, Prostate and Urinary Bladder are known as
Uro Oncology

Oncology is concerned with:

 The diagnosis of any cancer in a person

 Therapy (e.g., surgery, chemotherapy, radiotherapy and other modalities)
 Follow-up of cancer patients after successful treatment
 Palliative care of patients with terminal malignancies
 Ethical questions surrounding cancer care

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Place Strategy

Within a little over 9 years, Fortis Healthcare has grown as one of the largest and
internationally recognised healthcare chain. With an unparalleled network of hospitals and a
presence in three major metropolitans of India across Mumbai, Bangalore and Kolkata
among others boast of the very best in Healthcare Infrastructure, and with our award
winning service. Fortis commissioned its first hospital in at Mohali, near Chandigarh.
Currently, the Fortis network has an over 12000 bed capacity across 68 hospitals in seven
countries.

FORTIS group wishes to further strengthen its base in its home ground-North India and plans
to expand all over India.

In view of the high incidence rate of heart disease in Punjab, Fortis launched its first
hospital in Mohali as a cardiac centre-Fortis Heart Institute— a 200-bed hospital. It was
marred by persistent problems. People still preferred Delhi as a destination for cardiac care.

After the operations in the Mohali hospital stabilized, Fortis built a multi speciality hospital
in Noida. The success of the multi speciality hospital encouraged Fortis to expand its
business all over India. In 2005 Fortis bought over Escorts Heart Institute and Research
Centre a well known cardiac care centre.

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Strategy wise, Fortis is clear that whatever geography they enter, they will have a very
intense engagement with the population of that area. They are not happy with just one
hospital in a city. Any metro in India has a population equivalent to populations in several
cities combined in many countries. Just one hospital cannot meet the needs of all the
people is what they think. Their idea is that hospitals need to be conveniently located so
that they are accessible to population in all areas.

Fortis Healthcare on an Expansion Spree

Expanding Wings

 Fortis has forayed into South India by acquiring a 49 per cent stake in Malar
Hospital.

 The Fortis Hospital at Vashi, a multi super speciality hospital, is expected to be

launched in the early part of the second quarter of FY09.

 The company's Greenfield multi-speciality hospital in Shalimar Bagh will be

operational in FY09.

 Fortis International Institute of Bio-Medical Sciences (FIIMS) at Gurgaon, a seven-

star multi super-speciality flagship hospital is under construction.

Tier II cities and Challenges

The tax holiday given by the Government for hospitals in tier II cities has not attracted
Fortis. In their viewpoint, there is very limited potential in tier II cities. The actual
perspective goes like this that the patient base and paying capacity is very less and shifting
good doctors to tier II cities is painful task. But they have started operations on a small scale
in some of the tier II cities like Jaipur, Raipur etc. The management contract to run the
cardiac centre in Raipur has also been extended by the Chhattisgarh Government. Fortis is
looking for expansion in state capitals. However, there are no plans of expansion in tier III
cities.

For a group expanding at such a fast rate, shortage of manpower is a key challenge. To cater
to medical education, the group plans to set up new health cities. “We would like to set up
10 health cities with tertiary care hospitals, with campuses having colleges for dentistry,
paramedics, nursing, clinical research centres, and pathology laboratories. However for this
to be practical there is a need to change Government policy," opines Shivinder Singh
(Managing Director).

The group has expanded its footprint in South India by acquiring the 250-bed Malar
Hospital, Chennai this year and are currently expanding and upgrading the facility. The

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group has also entered West India, acquiring the Hiranandani Hospital project in Vashi, Navi
Mumbai, and a tertiary level facility for an investment of Rs 32 crores. This is in the form of a
Public-Private- Partnership (PPP) with Navi Mumbai Municipal Corporation. The location is
strategic since Vashi needs a hospital that promises good quality healthcare. In super
specialities, the hospital caters to cardiology, orthopaedics, trauma and neurology with a
backup of multi-speciality.

Bangalore based Apollo RM Hospital, now rechristened Fortis Hospital, Seshadripuram is a

multispecialty hospital situated in the well located Seshadripuram area of central Bangalore.
Mr. Shivinder Mohan Singh, Managing Director, Fortis Healthcare Limited once said, “We
are pleased to announce our entry into the vibrant capital of Karnataka. This is a step
forward to realize our vision of becoming a strong national player and brings the FORTIS
brand of healthcare to the people of the state. Southern and Western India shall continue to
be focus of our network expansion plans.”

Fortis Healthcare intends to significantly expand its footprint across the region. The next
phase of their growth will be to look at other countries outside Asia. Two Green-field
hospitals are under-construction, these are:

 A super-specialty hospital in Shalimar Bagh, West Delhi, with specialization in cardiac

care, orthopaedics, neuro-sciences, renal sciences, mother and child care and
gastroenterology (first phase - 250 beds).

 Fortis International Institute of Medical and Biosciences (FIIMBS Medicity) with two
multi-speciality hospitals having 750 beds along with a medical college for 500
students. FIIMBS Medicity Gurgaon will have a focus on trauma, oncology, mother
and child care, cardiac care, orthopaedics, organ transplants and neuro-sciences
(first phase -350 beds)

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Pricing Strategy

Fortis Hospitals and Healthcare is in the services segment, a segment where the pricing
strategy has to be spot on to give one the edge over its competitors. Not only the prices of
the services rendered to be set with extensive research, the quality of services should not
be compromised with. This is what FORTIS has done since its inception which sets FORTIS
apart in the healthcare segment.

When compared to its competitors like APOLLO, RUBY, PEERLESS in Kolkata, MANIPAL,
WOCKHARDT, MALLYA in Bangalore, LILAVATI, TATA MEMORIAL in Mumbai FORTIS,
maintains a stable price policy and there is a very marginal difference when it comes to the
amount charged for the services rendered among its competitors. This is where FORTIS hits
the Bull’s eye. It promises to provide better services at marginally lower price than its
competitors. Thus it became a price-quality leader in the healthcare segment.

Analyzing the FORTIS healthcare clinics setup with the aid local hospital and clinics of tier II
cities we get a fair idea about the pricing strategy for the medical visits made by the patients
for checkups in the healthcare clinics. The price for visits ranges from Rs55 to Rs100
depending on the time of the appointment and the department. The price revision in the
healthcare clinics is calculated by estimating the average no of patients per department and
the departmental maintenance cost and then this calculation is done keeping in mind all the
departments thereafter which the revision is brought about. The price of surgeries is also
subsidized according to the income groups.

FORTIS came up with health check packages with discounts for females above 40 years old
and senior citizens.

An overview of the health check packages is given below.

Comprehensive/ Whole
Comprehensive/ Whole body Cardiac with CT
Packages Cardiac Executive Body
Executive Male Male Angio
Female Female

2800/- 3300/- 3300/- 4500/- 4500/- 13500/-

Lab Investigations

Complete Blood
√ √ √ √ √ √
Count

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Coronary Risk
√ √ √ √ √ √
Profile

Urine Routine √ √ √ √ √ √

Blood Glucose
√ √ √ √ √ √
(Fasting)

Serum Calcium √ √

Blood urea
√ √ √ √
nitrogen

Serum Creatine √ √ √ √

Liver Function Test √ √ √ √

***PSA √ √

Pap Smear √ √

Uric Acid √ √ √ √

HBS AG √ √

ABO

Non Invasive
Cardiology

ECG √ √ √ √ √ √

TMT √ √ √

Echo √

Radiology

X-ray Chest PA √ √ √ √ √

Ultrasound whole
√ √ √ √
abdomen

*Sonomamography
√ √
*Mammography

Coronary CT Angio
√
(64 slice)

Lung Function Test

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PFT √ √ √

Consultations

Internal Medicine √ √ √ √

Cardiology √ √

Dental √ √ √ √ √ √

Opthalmology √ √ √ √

Gynaecology √ √

Dietary √ √ √ √ √ √

Optional Consult √ √ √ √

Body Compostion
Analysis

√ √ √ √

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Promotion Strategy

Promotion of Fortis in the first few months of setting up where not in the front end they
were more into putting things at place before going on the full throttle with the promotion
of the health care services that they where providing.

Once the management was sure that the offerings from their side where all up to the mark
the company went into extensive promotions starting from promotion vans that where set
up, to extensive ads and hoarding. The promotional strategy also included many free clinics
for the poor and also in the rural areas in the NCR region in the first few years when they
were concentrating for growth in the NCR region.

Once the company settled its market up in the NCR region it created a buzz in the other
metros in this regards. They organised many road shows, awareness weeks. The hospital
came into the eyes of the general public after it was shown in the blockbuster Bollywood
movie “3 Idiots”. The movie provided the hospital-chain with a platform to come into the
eyes of the general masses all over the country. And the spill over effect of this being the
that the chain of multi-speciality hospital under the banner of Fortis opening up in all the
Tier I cities and some of the Tier II cities also. In some of the Tier II cities in order to come up
with its brand it has stated up with small clinics and centres in association with some local
hospitals so that they may in future come up with their hospitals here.

In order to expand their market they went into the acquiring the Escots, Park-Way and
Malar group of hospitals, thus putting up their reach to many more people. The organisation
in order to increase its reach to foreign customers they started operations in Mauritius.

The organisation tied up with many companies and offices to provide them with the health
cards to its employees so that the employees can be treated on No-cash basis. By this
strategy the organisation made a high amount of customer base and also in this process
retained many a consumers.

The Fortis Healthcare group has set up a low cost hospital in Mohali to facilitate the non-
urban poor in the region. They have opened many free health camps and free health check-
up days in their hospitals also to increase the customer base. They celebrate days such as
World Cancer Day and World Osteoporosis Day in order to bring awareness among their
patients. During these days they give discounts on the services provided and thus adding on
to its already existing promotions.

Fortis had in 2008 held an International Conference on Breakthrough in Oncology via which
it was able to promote the hospitals in the international arena where in India has already
claimed a place due to its cheap medical costs.

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Fortis also sets up blood donation camps in different colleges and NGO’s and through this
they are able to get into the eyes of the general public and the young blood of India. The
organisation also sets up regular Hepatitis C testing and prevention camps.

When Fortis came up with its new facility in Kolkata, they offered a `500/- package by which
any person who registers under this scheme will be provided with a health card and can
produce it in times of emergency and get admitted without any hassles. They also
introduced a `2800 and `3500 package of complete health check-ups during its first week of
operations in Kolkata. They organised road shows to create awareness during the week and
also put in some very attractive hoardings sending messages like given below:

In a recent development Fortis healthcare has signed an agreement with the Republic of
Burundi, by which it would provide training to the doctors and nurses in Burundi, doctors
from Fortis Healthcare would undertake regular visits to Burundi in order to bring world
class healthcare within the reach of the poor and needy of Burundi. Residents of Burundi
who cannot be treated in Burundi would now be transferred to Fortis Healthcare in India for
treatment through this tie-up; Fortis Healthcare would serve poor patients who require care
and treatment in Neurosciences, Oncology, Orthopedics & Cardiac Sciences.

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Conclusion

Within a decade of its inception Fortis has made huge strides in terms of providing services.
With low cost hospitals, affordable services by healthcare clinics, health packages it gained
the trust of the people within a very limited time competing with old trustworthy service
players like Apollo, Wockhardt etc. It has created an image for itself as a healthcare unit
which provides high quality services at an affordable price. Fortis healthcare limited in years
to come, with stake in Parkway healthcare would be high quality and trustworthy healthcare
service provider not only in India but all over the world.

References

http://www.fortishospitals.com

http://www.fortishealthcare.com/

http://www.ibef.org/industry/healthcare.aspx

http://en.wikipedia.org/wiki/Medical_tourism#Asia.2FPacific

Acknowledgement

We thank Professor Rajeev Kamble, our mentor and guide at IMT-Nagpur for helping us in
giving this project a concrete shape. We also would like to thank Miss Sutapa Deb and Mr
Kaustav Bhattacharya at Fortis Hospital Kolkata for the valuable input for the completion of
the project.

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