Medanta has no effect on competitors

Despite the successful opening of India’s biggest multi-specialty hospital, Medanta — the Medicity, in Gurgaon a few months ago, it is business as usual at most hospitals, which were expected to be adversely affected by Medanta’s presence. Industry analysts see this as proof that there is more than enough demand for quality healthcare facilities even in cities like Delhi, perceived to be saturated.

Even Artemis and Paras, the two hospitals in the same locality, have not announced any changes in rates. However, Artemis is said to have offered up to 30 percent discount on outpatient consultations and diagnostic services.

Apollo Hospitals — which was expected to see a sudden drop in patients flow, as the Medanta team, led by its chairman and cardiac surgeon Naresh Trehan, had been offering their services there before — claimed they continue to be full.

Sangeeta Reddy, executive director (Operations) of Apollo Hospitals Group, said the hospital has not made any Medanta-linked changes in its rates. “We have been engaged in a cost rationalisation programme and if any change (reduction) in prices have happened, it’s not to be linked to anything else.”

Delhi is the country’s hottest healthcare market, with the most number of corporate players — Apollo, Fortis, Max, Paras, Artemis — and a chunk of established trust hospitals, including Batra Hospital and Sir Ganga Ram Hospital.

Dr Kushagra Kataria, chief executive of the 260-bed Artemis Health Institute, denied any rate cuts post launch of Medanta. “Each hospital has its own unique strengths. Our doctors, technology and services are second to none. We have 75 per cent occupancy and are doing very well.”

Paras, another 300-bed facility in Gurgaon, said Medanta had made no difference at all to them. “I am very confident about the services we offer. Value for money with quality of service has been our motto from day one. Our costs have always been lower than other competitors and with the kind of service that we provide, patients continue to be interested in us,” Dharmender Nagar, managing director of Paras Healthcare, said.