I write to you as India along with most other countries is in the gripof the COVID 19 pandemic that has resulted in a huge loss of lives a_icted countlessmore and caused immense hardship both economic and physical. Our thoughts and prayersare with those families who have lost loved ones and those who have been affected in manyways by the virus.
I believe that despite all the challenges the healthcare sector inIndia has shown immense unity and acted collectively to manage the pandemic. There is alsogreater acceptance that both public and private healthcare sectors need to work closelytogether to ensure better facilitation of healthcare in the country. The doctors nursesparamedics and technical staff in your Company have been working tirelessly attending toinfected patients often living in the hospital itself putting themselves and theirfamilies at risk. Your Company has established a 360-degree operational system for bothpatients and its staff. A dedicated COVID taskforce has been set up to monitor thesituation and separate wards have been earmarked at your hospitals for COVID management.Over 1000 beds have been made available to the Government and in addition home carepackages for patients and e-consultation for patients have been launched. We havecontributed Rs 5.90 crores to the PM CARES fund. I thank every member of the Fortis family doctors nurses and frontline staff for their hard work and commitment to theorganization specially during the COVID crisis.
The strategic partnership of IHH Healthcare Berhad (IHH) one of thelargest healthcare groups in the world by market capitalisation with your Company hasbeen a tremendous blessing. It has spurred a major transformational journey in yourCompany that began a year ago. The newly reconstituted Board has developed a bold strategyto curate leading practices in patient centricity clinical excellence and qualityhealthcare delivery. Your board has successfully ensured significant strengthening inprocesses and controls across the organization such that a rules-based decision making isin place. A robust and restructured audit program has been implemented to enhance theorganization's governance mechanism. Your Board has also been ensuring that the IHHcapital infusion is put to good use. It has overseen the successful RHT HealthTrust' buyback and has helped put in place a new management with vast industryexperience. We have been fortunate to have with us Dr. Ashutosh Raghuvanshi who joined asManaging Director and CEO in March last year. He brings with him 27 years of experience asa clinician and hospital administrator. Bolstering senior management your Company now hasa new CFO Mr. Vivek Kumar Goyal. The most recent induction has been that of the GroupCOO Mr. Anil Vinayak a seasoned professional with over 8 years' experience in thehealthcare sector.
Dr Ashutosh Raghuvanshi a Paediatric Cardiac Surgeon by training hasled the streamlining of all business operations improving patient care and servicebringing forward clinical excellence reorienting the operating model and delayering theexisting structures to ensure simpli_cation and transparency in processes and procedures.From an operational perspective Dr Raghuvanshi has been instrumental in rolling out thenew Group Authority Matrix (GAM) for effective and quick approvals. The OneFortis HospitalInformation System has been implemented in 20 hospitals. Better controls transparency anddiscipline have been ensured in various business processes and an online BusinessIntelligence dashboard project has been initiated. Under Dr Raghuvanshi's leadershipthe clinical governance framework across your Company has been revamped and rejuvenated.New clinical infrastructure such as the Oncology block at Fortis BG Road Bengaluru andthe Transplant block at Fortis Noida NCR have been launched.
The association with IHH has been extremely valuable as the twocompanies are working closely together in bringing best global practices improvedstandards of patient care and advanced technology across the medical organizationprocurement and other processes. For instance your Company procured state-of-the-art CathLabs for several of its hospitals at pre-negotiated rates in collaboration with IHH. Theclinical team at Fortis also received valuable inputs from their counterparts in Singaporeand Malaysia with regard to management of COVID patients. The benefit of the interactionhas been mutual as IHH too has gained by learning about some of the clinical governancebest practices of your Company. The Drugs & Consumables rate contract for all IHHentities across India has been negotiated effectively leading to substantial costsavings. Your Company's IT team made an information technology assessment of IHHentities in India and infrastructure assessment of IHH entities in Singapore. To sum upthe partnership has enabled us to leverage clinical expertise and create an even morepowerful brand with a very credible Asian healthcare service provider.
The mandatory open offer from Northern TK Ventures Pte ltd asubsidiary of IHH Healthcare Berhard to the public shareholders of Fortis for theacquisition of up to 26% shareholding continues to await the outcomes of proceedings inthe Supreme Court. This followed Judgment of the Hon'ble Supreme Court in November2019 wherein the Court issued suo-moto contempt notice to among others Fortis in regardto alleged violation of the order dated 14th December 2018. On 28th January 2020 yourCompany has filed response to the suo- moto contempt notice. Northern TK Ventures Pte ltdSEBI and a retail shareholder have also invoked the jurisdiction of Hon'ble SupremeCourt of India for allowing the mandatory open offer to proceed. The matter is sub-judiceand hearings are yet to take place. We remain firm that all the processes related to theopen offer were conducted in a fair and transparent manner. All relevant regulatoryshareholder and corporate approvals were obtained and due disclosures were made to thepublic shareholders and regulatory authorities. We had the best interests of the Companyand its shareholders in mind. We continue to take appropriate measures and legal recoursein critical matters and have been consistently in dialogue with relevant authorities toensure their investigations into several matters receive our full and unstintedcooperation.
Looking forward to the current fiscal year we will focus ongeographies where we can build further on our strengths NCR Mumbai Bengaluru andKolkata. We will evaluate our overall portfolio with a view to transform and turn-aroundcurrently under-performing hospitals having potential while growing and investing inhigh-performing facilities and evaluating strategies regarding low potential facilities.We believe in close collaboration with the Government we partnered with Gurugramadministration and other private healthcare players to help set up a dedicated COVIDhospital at Manesar Gurugram. Your Company helped provide additional equipment set upprotocols and processes provided support for procurement and additional manpower. We arealso participating in a national CSIR & Institute of Genomics and Integrative Biology(IGIB) initiated project on COVID-19. In Mumbai your Company is helping the BrihanmumbaiMunicipal Corporation to create required infrastructure to manage patients. We areproactively working with industry associations such as CII NATHEALTH and FICCI with theobjective of increasing the industry branding for Fortis as well as for deeper engagementbuilding synergies with our stakeholders.
I would like to conclude by assuring you that the year ahead whileseemingly challenging will give us ample opportunities to further build on public andGovernment trust. The private sector will continue to be the mainstay of hospital care inIndia and the need of the hour is to work jointly with relevant stakeholders to strengthenaccess to quality health services in India. I thank you once again for your commitment toFortis and wish everyone the best in this year.
|Thank you |
|Ravi Rajagopal |