‘Access to healthcare through digital routes more acceptable’

What is your strategy for expansion and growth for the next three years?

With recent acquisitions, our network of 27 facilities and over 7,600 beds is now present in 15 cities. However, there are many more geographies that we would like to serve. Kerala, where Manipal is a household name due to its deep roots in education, is one state we aspire to be present in. The eastern part of India is still deprived of high quality healthcare and we would like to explore opportunities there. We would also like to further deepen our presence in Maharashtra and the National Capital Region. With the consolidation phase that the healthcare sector is now seeing, partly due to the consequences of the pandemic, we are optimistic about brownfield expansions that fit well with our plans.

Another focus will be on expanding our digital presence further. The constraints of COVID have made digital routes more acceptable for both patients and providers to access healthcare. The government has also swiftly rolled out an enabling regulatory framework along with ambitious programs such as the National Digital Health Mission. The overall ecosystem is well established to support new digital initiatives.

What challenges are you facing in brand integration? When is it likely to be completed?

The brand integration will be completed by mid-November with all our 27 hospitals coming under one umbrella. While the acquisitions ended about 6 months ago, we wanted the integration to be a carefully planned and calibrated exercise that took all stakeholders, especially our people, along. With 4,000 doctors, 11,000 employees and around 5,000 individuals on outsourced roles, we are a 20,000 strong organization. In our minds, the priority was certainly the cohesion of the teams, ensuring that there is a meeting of minds, an aligned vision and a clear roadmap ahead that is visible to everyone in the combined organisation. We have been able to achieve this and with the unified brand coming soon, the integration exercise has become smooth.

What is the expected revenue growth in FY22?

During the first quarter and also in the early weeks of the second quarter of this year after the second peak of covid, there has been a rapid recovery in the healthcare sector. With around 90% of all admitted patients having COVID cases, this has come down to around 5%. Therefore, hospitals are now able to meet the needs of other patients, many of whom were postponing their treatment over the past 18 months. This should help the sector return to the pre-pandemic growth trajectory in the range of 15%.

Who are the Major Investors in Manipal Hospitals? Are you also looking to venture into an Initial Public Offering (IPO) in the near future?

Manipal Hospitals has always attracted marquee investors. Apart from being an attractive sector for investors, the reputation and track record of promoters as fair and transparent partners has been an important factor. We have TPG, Temasek and NIIF as our investors. While IPO is an option that is available, we haven’t made any plans around that yet.

How has COVID-19 affected business and what are the key lessons from the pandemic?

The greatest impact in terms of number of patients was during the first wave, due to fears of the virus as it was a new one and treatment protocols were still unclear. In addition, there was no vaccine in sight. This was complicated by the strict lockdown that restricted all travel. That situation, of course, affected financial performance and the first half of FY2011 was a difficult period for all hospitals, as it was for all sectors of the economy. Since then, with advances in treatment options, as well as significant advances in vaccination, there has been a decrease in negativity.

This pandemic is arguably the most severe test the health system has faced so far and only the courage and resilience of the frontline clinical teams helped the country weather the storm. COVID brought a lot of attention to the shortcomings in our healthcare infrastructure and perhaps the silver lining, if one may call it, is prompt action by governments at the Center and in the states to direct much needed investments to fix it. Is.

Hopefully, the momentum and intent will prevail and as a country we will be in a better position to deal with another pandemic, if it happens. The priority accorded to primary and rural health facilities should help the nation overcome the adverse disparity that our villages and small towns face with respect to both basic and medical talent. There is no reason for us as a country to lag behind in healthcare, as our achievements in telecommunications, transport and electricity show what can be achieved if we make a collective effort.

What are some of the major initiatives in the pipeline to ensure seamless healthcare among patients from neighboring countries?

Pre-Covid, approximately 10% of our revenue was from international medical value travel. While this fell to almost zero in the initial months of the pandemic, with international travel now lagging behind, we are seeing a revival of this segment in our hospitals. We kept in touch with our foreign patients during this period and encouraged them to seek treatment from whatever source was available, rather than letting their disease progress. With the resumption of medical visas, we are facilitating travel for those who are prioritizing matters that require immediate attention. We hope that those who rely on other countries for medical care do so as soon as possible, especially as the diseases for which they travel such long distances are almost always serious and debilitating. There are.