You are here » Home » Companies » Company Overview » Fortis Healthcare Ltd

Fortis Healthcare Ltd.

BSE: 532843 Sector: Health care
NSE: FORTIS ISIN Code: INE061F01013
BSE 00:00 | 20 Mar 136.30 0.05
(0.04%)
OPEN

136.25

HIGH

137.95

LOW

135.85

NSE 00:00 | 20 Mar 136.30 -0.35
(-0.26%)
OPEN

137.95

HIGH

137.95

LOW

135.50

OPEN 136.25
PREVIOUS CLOSE 136.25
VOLUME 37368
52-Week high 160.90
52-Week low 120.60
P/E
Mkt Cap.(Rs cr) 10,290
Buy Price 135.90
Buy Qty 300.00
Sell Price 136.30
Sell Qty 100.00
OPEN 136.25
CLOSE 136.25
VOLUME 37368
52-Week high 160.90
52-Week low 120.60
P/E
Mkt Cap.(Rs cr) 10,290
Buy Price 135.90
Buy Qty 300.00
Sell Price 136.30
Sell Qty 100.00

Fortis Healthcare Ltd. (FORTIS) - Chairman Speech

Company chairman speech

Dear Shareholders

It gives me great pleasure to communicate with you through the Annual Report for theyear 2016 17. At the very outset I warmly acknowledge the trust reposed on us by each oneof our valued shareholders who have contributed to our continued success.

These are both exciting and challenging times for healthcare in India with the sectoroffering a plethora of lucrative opportunities as well as facing some regulatory changes.It is also fast emerging as one of India's largest economic sectors both in terms ofrevenue and employment with rising disposable income and the consequent growth in demandfor quality healthcare services. Apart from a robust domestic market India is also makinga mark as a 'healthcare hub' for international patients looking for world-class clinicalcare at affordable costs. The future continues to look bright. According to a May 2017report by the India Brand Equity Foundation (IBEF) the domestic healthcare industry isexpected to touch USD 160 billion by the end of 2017 and USD 280 billon by 2020.

India's competitive advantage lies in its large pool of high-quality clinical talentwell-trained nursing and paramedical professionals and the availability of modern medicalinfrastructure especially in the country's thriving private sector. The significantlylower cost of healthcare delivery as compared to its counterparts in Asia and the Westadds to its attractiveness as a global healthcare destination. Given the emergingscenario I firmly believe that our decision to stay focused on India has been highlyrewarding. In line with our vision we are firmly committed towards providing qualityhealthcare services whilst exploring innovative ways to improve accessibility andaffordability.

CLINICAL EXCELLENCE

Your Company is widely acknowledged as a pioneer in the healthcare delivery space inthe region. The credit for Fortis Healthcare's leadership position goes to our doctorswho are performing highly complex and innovative medical procedures and deliveringconsistently superlative outcomes comparable with the best institutions in the world.With an unwavering focus on Clinical Excellence and Patient Centricity we havesubstantially broadened the footprint and depth of our medical programmes in OrganTransplants Cardiac Sciences Orthopaedics Mother and Child Health and Oncology to namea few. In particular Fortis has emerged as a major hub for complex multi-organ transplantsurgeries in the country underscoring its outstanding clinical expertise in the OrganTransplant domain. To add further impetus to the Organ Donation movement a sustainedmulti-media campaign 'More to Give' has been launched with the objective of building afavourable public opinion and eventually creating a strong nationwide climate for organdonation.

CLINICAL OUTCOMES REPORTING

In FY16 Fortis became the first private network in India to introduce monitoring ofits clinical outcomes based on ICHOM (International Consortium for Health OutcomesManagement) standards - starting with Fortis Escorts Heart Institute (FEHI) New Delhi fortwo procedures namely: Coronary Artery Bypass Graft (CABG) and Percutaneous CoronaryIntervention (PCI PTCA). In FY17 five additional hospitals Fortis Mohali FortisAmritsar Fortis Ludhiana Fortis Malar and Fortis Vashi started reporting clinicaloutcomes for the two procedures. Currently 16 Fortis units have implemented the ICHOMstandard sets for Coronary Artery Disease. The clinical outcomes data for KidneyTransplant (1-year Survival) at Fortis Vasant Kunj is being published as well. It isencouraging to note that the clinical outcomes at Fortis are comparable with the globallyaccepted best-in-class benchmarks. Further the portal is now being used for reportingKidney Transplants and Cancer Registry.

TECHNOLOGY

Emerging medical technology is playing a decisive role in delivering superior clinicaloutcomes. In our quest to offer the best to our patients we continue to harness thelatest medical technologies. We have introduced precision robotic surgeries which havedrastically reduced recovery time and significantly enhanced patient experience.Additionally we are also at the forefront of leveraging the latest in informationtechnology to drive smooth and efficient business operations standardise the quality ofservice delivery enable cost optimisation and enhance patient engagement. Fortis strivesto stay abreast of the new developments and adopt digital health solutions andapplications to improve patient outreach and care. In the coming year our focus will beon optimising technology to improve our business model operational efficiency resourcemanagement and patient data. The aim is to build innovative solutions focused on patientengagement and empowerment.

MEDICAL TOURISM

India is among the top three medical tourism destinations in Asia along with Thailandand Singapore mainly due to quality healthcare infrastructure availability of highlyskilled doctors and relatively low cost of treatment. As per FICCI the Indian medicaltourism industry is expected to reach USD 6 billion by 2018 with the number of peoplearriving in the country for medical treatment set to double over the next four years. Onan average Fortis receives 15% of its patients from Iraq in the Middle East; KenyaNigeria and Uganda from Africa; Uzbekistan Kazakhstan Ukraine and Turkmenistan from theCIS region and Pakistan Bangladesh and Afghanistan from within Asia. We continue toexpand this segment by offering greater value to international patients by way ofproviding customised services such as visa assistance interpreter facility conciergeservices dedicated service managers accommodation and food assistance among others.

DRIVING EFFICIENCIES AND VALUE CREATION

To deliver our mandate effectively and to fund our growth journey we continue toundertake projects and initiatives that will significantly enhance our operatingprofitability. In October 2016 we completed the acquisition of 51% economic interest inFortis Hospotel Limited (FHTL) from the RHT Health Trust in Singapore providing asignificant fillip to our operating profitability. We continue to evaluate ways and meansto further optimise our financial structure vis-a-vis our asset light growth model.

To expand our reach and capacity we are pursuing a multipronged approach includingBrownfield expansions. Concurrently we are revisiting the usage of space within theexisting hospital facilities to evaluate optimal capacity utilisation possibilities. Weare also accelerating our Operate & Manage (O&M) outreach to hospitals across thecountry and other geographies without any financial investments from our side.Additionally the company continues to progress towards a leaner cost structure which willgive us resiliency to face any challenges as they come.

On a related note we continue to pursue the efforts required to further optimise ourcapital structure and raise funds for the Company's growth to unlock value for ourshareholders. In August 2016 the Board of Directors of Fortis Healthcare Limited hadapproved a proposal to demerge our majority owned diagnostics business 'SRL Diagnostics'into a listed company through a composite scheme of arrangement and amalgamation. The newarrangement resulting from the demerger will harness these unique capabilities andstrengths unlocking value through flexibility and by fueling our growth trajectory.

CORPORATE SOCIAL RESPONSIBILITY

With the growing need for better healthcare services especially for theunderprivileged Fortis Foundation has been ardent in its quest to ease the pain andburden physically and financially of those needing help. Additionally the Foundationhas been focussing on preventive healthcare solutions for the society. The philosophy ofthe Foundation is centred around building partnerships with other like-mindedorganisations and people who support sustainable scalable and high impact programmes. Twoprogrammes under the ambit of the Foundation SEWA and SAVERA are being supported byFortis Healthcare. While SEWA is aimed at providing timely medical support in the event ofa disaster SAVERA provides open platforms for Healthcare Information.

In conclusion I would like to reiterate that today there is an increased demand forquality healthcare delivery services from our people. Greater awareness and expectationshave led to an increased demand for advanced and modern treatment options. Your Company isstriving to meet this by continuing to focus on building our clinical expertise improvinginfrastructure and strengthening core specialities to serve patients with greater zeal andenthusiasm. I wish to thank all our stakeholders investors and partners for believing inus. I am confident that our strengths in patient-centric healthcare delivery strongassociations and the credibility within the medical fraternity will propel Fortis to thenext level of growth.

Malvinder Mohan Singh

Executive Chairman