apollo spectra

Partnership FAQs

What does setting up a Hospital on a Partnership basis entail?

Hospital Partnership today is one of the most shared business models which has been adopted by some of the most well-known brands. Even in India, it has had significant success with established providers. Apollo supports the entrepreneur (the Partner) with its brand name, vast industry/business knowledge & also handhold operations and management. As a result, a typical entrepreneur has best of both the worlds, the satisfaction of running his own business and the support of a well-known large organization.

Who is an ideal partner for setting up the Hospital?

Consistently superior quality of services is the cornerstone to ensuring success of the Hospital. Apollo therefore selects each Partner with utmost care. A proper due diligence is carried out before finalizing a partnership. An ideal partner will have the following characteristics:

  • He/She will have a prior track record of running a successful business venture.
  • He/She will have a social standing, enjoy good reputation and exhibit integrity.
  • He/She will be genuinely interested in the healthcare sector.
  • He/She will strictly abide by the guidelines given by Apollo.
  • Individuals/Groups who are owning hospitals & looking for next level growth by partnering with Apollo.
  • Individuals looking purely for quick returns or productive utilization of their idle space or building are not necessarily the right candidates and are likely to be discouraged.
What is the first step towards becoming a Licensee/Partner?

Write us an email with your query & interest for the project: [email protected]. Our business team shall respond to you with details.

How can a prospective Licensee/Partner obtain detailed information about the project?

If your profile is found suitable and after successful completion of due diligence process, you will be required to attend a meeting with our senior leadership at our corporate office in Hyderabad for final selection.

What are the formalities involved in selection of a Partner for 'Apollo Spectra Hospitals'?

Depending upon applicant’s conviction about the project and Apollo's assessment about partnership feasibility to successfully take it forward, a MOU would be signed between Apollo Spectra Hospitals and applicant. This would be followed by a Due Diligence conducted by Apollo. Applicant would also need to form a company to establish ‘Apollo Spectra Hospital’. Once this process has been completed, Apollo will sign a License agreement with applicant company to officially nominate as a Hospital Partner for ‘Apollo Spectra Hospital’.

How long would it take to start operations from the time of signing the Licensee Agreement?

The time taken from signing the Agreement to commencing operations depends to a large extent on a few critical factors like, the selection of a suitable site, tying up the finances and completing licensing requirements. Also, the time required for constructing ground up Hospitals is typically longer than that required for establishing Hospital in existing buildings. We have in the past opened a hospital within 12 months commencing work. If there are no major issues, it is easily possible to commence operations within a time frame of 12-15 months from the date of agreement.

Can I form a partnership venture with other business partners for becoming a Hospital licensee?

You can decide to partner with anyone else for taking the Hospital partnership as licensee. However, Apollo will assess each person individually before signing the agreement. Change in partners/shareholders after the signing of the agreement is restricted or added with mutual consent of both parties.

Can applicant only be an investor? If I put up funds and agree to a different sharing pattern, is Apollo Spectra Hospitals willing to manage the business? Else, can I appoint a professional manager to run the business?

Yes, It can be done through our Flexi - business models. The ideal partner for us will be a real estate owner/hospital owner/doctor who will be responsible for setting-up the hospital as per Apollo defined criteria and Apollo could consider for operating and managing the hospital unit. Basis on the agreed business format proposed.

What is required in order to set up a Hospital?

The Hospital will require a minimum constructed area of about 25,000-30,000 sqft, should preferably be close to a large residential area. The area will vary according to the number of specializations being planned. Eligible applicant may consider that the Hospital building could be an own/leased/rented/ premises. However, applicant may also consider constructing a separate building, or purchasing existing buildings.

How is Apollo Spectra different from similar establishments run by doctors/entrepreneurs in my neighborhood?

You can feel the difference between Apollo Spectra Hospitals and other similar establishments right from the moment you enter the Hospital. The ambience is designed to provide an experience which is most comforting to the customers. Our clinical as well as non-clinical procedures have been developed after research by a team of specialists from within the Apollo Hospitals Group. Consultants are selected for the Hospital after being interviewed & trained by Apollo.

What are the value added services that Apollo provides? What does Apollo Spectra Hospitals do for the partners?

The relationship between ‘Apollo Spectra Hospitals’ and the hospital partner is modeled on best international partnership standard. As the Licensor, Apollo will provide all support for setting up and later running the Hospital. The overall scale of operations will ensure that the partner enjoys excellent cost competitiveness - both during implementation stage and later during operations.

Given below is a brief description of Apollo's support services to be provided:

Clinical Vision and Strategy Formulation: Apollo Spectra shall commission a team of specialists to access a comprehensive review of the detailed project feasibility and market study report and then prepare a complete Clinical Visioning document, to arrive at the most optimal blend of Clinical program given the project location, competitive landscape, healthcare challenges of the target regions.

Site selection Do's & Dont's: This is first step of project development, and is the most crucial element of Hospital setup and utmost care should be exercised in choosing the right place for the Hospital. A set of Do's and Don'ts to be kept in mind while looking for a suitable site for the Hospital.

Architecture & Interior Design: Apollo projects team shall assess & assist in guiding comprehensive architectural manual incorporating all possible design features to take care of all types of sites (of any size, shape, location, etc). However, based on the guidance, Partner hospital can prepare design layout plan with help of our in-house project management team or out-sourcing an agency to execute.

Project Execution including Appointment of Contractor: Hospital Partnership applicant can use the Standardized construction (flooring)/ engineering (air conditioning, electrical, sanitary fixtures etc) materials are negotiated with leading suppliers/ manufacturers to get the most competitive pricing with help of our in-house team.

Project Cost & Revenue Model: Based on a study of the local need-supply scenario, Estimation and evaluation of the Project costs to be incurred for the completion of the proposed facility across different work areas shall be done. A detailed estimate of the civil and building costs, including utilities and support services, medical & other equipment and technology and estimation of preliminary & pre-operative expenses shall be prepared. The revenue streams shall be determined and related tariff plans in line with the overall business objectives shall be prepared.

Selection and Procurement of Medical Equipment: The hospital partner is provided with the list of recommended medical equipment from Apollo. AHLL would assist in selection of the appropriate medical equipment and equipment suppliers to meet the best fit requirements specified in the equipment schedule of the proposed hospital.

Project Commissioning and Start-up Assistance: As part of the project commissioning, Apollo Spectra team will assist with the recruitment, training and induction of staff at the Hospital. Team will also help prepare a complete pre-opening plan and also assist with opening of the Hospital including but not limited to inaugural ceremonies and opening functions. Team will provide continuous guidance and supervision to start-up of various departments within the Hospital.

Selection and Training of Personnel: Apollo has a highly structured system for selection and training of medical, para-medical and other administrative/support personnel in a hospital. Apollo is also directly involved in Screening of key positions in the Hospital, and a panel from Apollo Spectra Hospitals is involved in conducting interviews for all key positions in the Hospital. A conclusive training session is conducted by the Apollo’s team, for the administrative and technical staff at the Hospital. Refresher training and upgrades are provided to the employees on a periodic basis.

Hospital Management Software: Apollo has an exclusive basis, Hospital Management Software. This comprehensive software address all medical and non-medical functions of the Hospital. The software is implemented by Apollo/IT partners, and the Hospital staff will also be trained by Apollo/IT partners.

Local sales support Apollo's marketing & operations team will train the partner hospital sales personnel in sales and promotion of the Hospital. They are actively involved in developing product and pricing strategy and also the pre-launch activities.

On-going Service Quality Training & Monitoring Apollo will carry out periodic medical and service quality audits of the Hospital function, which help in maintaining and improving service quality standards of the Hospital. This includes regular clinical and non-clinical audits, developing standard operating procedures and checklists, and assistance in implementing service quality. Apollo also sets and monitors monthly revenue targets for the Hospitals.

What are the revenue streams in a Apollo Spectra Hospital? And what is the overall profitability?

The Hospital will derive its income broadly from the following services: It encompasses a large range of secondary care services such as Orthopaedic, Vascular surgery, ENT, General Surgery & Gastroenterology, Plastic & Cosmetics, Urology, Ophthalmology, Bariatrics, General Medicine, Cancer Surgeries, Pain Management, Physiotherapy & Rehab, Ortho-oncology surgery, Sports injury, urgent Care etc. under the brand name “Apollo Spectra Hospitals”.

Will Apollo Spectra Hospitals or Apollo Hospitals Limited make investment (even a token amount) in these Hospitals?

Since the chain of Apollo Spectra Hospital is being set up on a partnership model, the partner will be responsible for the entire investment. Where requested, Apollo shall guide the partner in arranging term loan from a bank. However, neither Apollo Hospital Enterprise Limited nor associated subsidiaries will not make any investment in the Hospital. It will also not give any guarantee to the lender.

What will be the relationship between existing Apollo hospitals & Apollo Spectra Hospitals?

While every Apollo Hospital will be an independent brand, both the brands will be benefited from the common brand building and similar exercises. Also, the Hospital can benefit from being able to refer customers for high end surgeries or medical conditions as well as tertiary or in-patient care to the Apollo Hospitals. The goodwill of all these facilities shall automatically come to the Unit through Apollo brand name. Specific association with any or all of these entities, shall be based on local market conditions and business needs.

If an Apollo Spectra Hospital is set up in a city where a full-fledged Apollo hospital already exists, will it not mean unnecessary competition within the same organization?

Apollo Spectra Hospital shall focus primarily on Secondary healthcare. We do not perceive any competition from the existing Apollo facilities which are mostly tertiary care facilities. Secondly, no two Apollo facilities would be operating in the defined territory as any other Apollo facility. In fact, such facilities would create synergy in service delivery.

What will be the name of the Hospital? Can the name be altered or modified?

Every Hospital will be called "Apollo Spectra Hospital". No deviations are allowed. The name and signage has been standardized and no deviation, beyond Apollo's stated guidelines, will be permissible.

What is the growth plan for the Hospital? Can I ever own an Apollo Multi-specialty partnered hospital?

Currently our focus is on Secondary healthcare Specialty as it is an area with tremendous unexplored and unutilized potential. The growth of Hospitals is envisaged in terms of geographical expansion or/ and hospital partnering.

How would doctors and technical staff be recruited? What will be Apollo’s role in this?

The method of employment of doctors would vary from city to city. Apollo will assess the financial implications on the business and recommend full time employment, revenue sharing based association or any other method that is considered appropriate. Good technical staff is adequately available in the market. Apollo shall help/assist in recruiting such all key staff by designing advertisements, conducting interviews, and short listing.

What would be the profile of a typical Hospital Unit Head?

The professional leader should preferably be an MHA/MBA with excellent managerial skills, hospital management, marketing acumen and a flair for customer relationship management. He would have about minimum 15-20 years of work experience, preferably in a Secondary or Treasury care facility. Doctors in administration may also fit the profile.

How many people do I need to employ to run the Hospital operations?

Typically staffing requirements in India vary between 50 to 60. Actual staffing could vary depending on a number of variables including the number of facilities set up and the number of floors occupied by the Hospital. In the international context, the number of staff will need to be determined on a case by case basis.

Can I invest in 10 Hospitals in different locations at a single time? What are the economies of scale involved for the partnership in such a case?

We would like to allocate a single partner only for one Hospital in the beginning. Based on the business performance and customer feedback, we would consider allocating licenses for more Hospitals.

Are the locations for opening an Apollo Spectra Hospital restricted? Can the Hospitals be set up anywhere in India or abroad?

Apollo has prioritized certain cities based on Market Surveys conducted for the establishment of new Hospitals. Some of these cities are being considered for implementation in the first phase itself. Other cities shall be covered in the second and third phase. We foresee completion of all three phases in the next 3 years itself. For information regarding specific locations, please contact our corporate office.

Whom should I get in touch with at Apollo Spectra?

Contact details are as follows:

Contact No: +91 96185 36730

Email: [email protected] [email protected]

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