It may have taken 54 years to set foot in north India, but south India's Manipal Health Systems has finally dived into the thick of action and announced two hospitals in Delhi with the promise of many more spread across the region.
However, the big challenge facing the company that operates 17 hospitals in the south will be competition from existing, well-established hospital chains such as Fortis, Max or even Apollo that entered north a while ago.
Known for its research capabilities and excellence in medical education, MHS is looking for opportunities to set up hospitals all over the country. It will launch with a greenfield project in Delhi within the next 18 months. The group is also in talks for acquiring a hospital building for its second project in Delhi.
Says R Basil, managing director and chief executive officer, Manipal Health Systems: "The two hospitals in Delhi will have 300 beds each and together they will see an investment of over Rs 200 crore (Rs 2 billion)."
But relying on its brand equity alone may not be enough for MHS. With established hospital chains (Max has six hospitals while Fortis has 13) spread over north India, for MHS to create a niche for itself will be an uphill task.
Also, with most hospitals now beginning to focus a large part of their resources on clinical research, banking on its research expertise might not give it the required edge.
But Basil is confident that Manipal will stand out for its services. To claim its stake in the north Indian market, MHS will bring in what it calls the patient service system.
"It is something we have introduced in all our hospitals in the south. We train our personnel and doctors in patient service and drill into them the basic dictum that every patient is important and must be treated warmly," explains Basil.
For instance, patient managers are stationed in the lobbies, ready to guide any patient who enters the hospital. The CCTVs make sure that patients from the lower income group are also assisted within two minutes of their arrival.
"We spend almost Rs 1.5-2 crore (Rs 15-20 million) every year on training our staff in customer service and believe that this friendly atmosphere that we keep in all our hospitals will set us apart from the rest," says Basil.
MHS has been growing at the rate of 38 per cent year-on-year for the last three years. Back in Bangalore, the healthcare group is introducing a new super-specialty in sports and exercise medicine this week.
"The project has cost us Rs 10 crore (Rs 100 million) to Rs 11 crore (Rs 110 million) and it's something we will also bring to Delhi in a big way to target the Commonwealth Games," says Basil.
