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Ajay Bakshi took charge as head of India operations of hospital chain Parkway Pantai, part of Malaysia's IHH Healthcare, on May 1. His appointment comes at a time when IHH is locked up in a race to take control of India's largest healthcare provider Fortis Healthcare.
IHH isn't any fringe player anymore. The company considers India as its home market and plans to expand here in a big way.
IHH today comprises seven hospitals and three feeder centres with more than 1,600 licensed beds in Bengaluru, Chennai, Hyderabad, Kolkata, and Mumbai. Much of its growth came by buying controlling stake in Hyderabad-based Continental Hospitals for Rs 300 crore in early 2015 followed by the much larger buyout of Global Hospitals at Rs 1,300 crore in the same year. The company operates hospitals in India under Gleneagles and Global brand names.
Bakshi, a neurosurgeon by training, is adept at running large hospital chains. He was with Max Healthcare as Managing Director and CEO where he led the successful launch of four new hospitals as well as a comprehensive turn-around of the hospital network. As the Managing Director and CEO of Manipal Hospitals from 2014 to 2017, he oversaw 16 hospitals covering 7,000 beds in India and Malaysia.
The former McKinsey consultant will have his work cut out to integrate and draw synergies - if IHH pulls out of the mega-deal by buying out Fortis.
In an exclusive email interview with Moneycontrol Bakshi said his group is continually exploring value-accretive opportunities to grow its presence in the country but avoided questions on Fortis.
Q: You have taken charge as CEO of India operation of Parkway Pantai, what was the message for you from IHH Healthcare group headquarters?
A: IHH is one of the largest healthcare operators in the world by market capitalisation, and I see immense potential for the Group to grow its presence in India, which is one of the most attractive markets globally, driven by its sustainable megatrends. We remain focused on building up a leading healthcare chain in the country, specialising in areas of our expertise including tertiary and quaternary care, multi-organ transplants (liver, heart, lung, and kidney), cancer treatment and neuroscience.
Q: What will be your priorities at Parkway Pantai/IHH?
A: Coming on board, I will continue to steer the Indian operations towards greater growth, by improving the quality of our offerings, leveraging the strong brand equity of both Gleneagles and Global brands. We will continue to strengthen our clinical capabilities in high-end quaternary work, to retain Gleneagles Global Hospitals’ position as a world-class multi-organ transplant centre offering an unparalleled range of transplant services. In addition, we will expand our capabilities in oncology and neurosciences
Q: IHH Healthcare has emerged from acquisitions – has the group been able to consolidate and unlock the synergy benefits?
A: We entered India in 2002 through a joint venture between Apollo Hospitals and Parkway Pantai. In 2015, we acquired a 51% stake in Continental Hospitals and a 73.4 percent stake in Global Hospitals. We then consolidated the recently acquired assets last year, under the “Gleneagles” brand, to drive greater synergies. As a result of successful integration, we have seen greater operational efficiency, smoother workflows and processes, higher standards of care across the board, improvements in patient experience and clinical outcomes. Today, our Indian portfolio comprises more than 1,600 beds in five cities across India, and we are continually exploring value-accretive opportunities to grow our presence in the country.
Q: You have been closely observing healthcare space, especially hospitals – what are the prominent challenges that confront the leaders in the healthcare space?
A: According to data from World Health Organisation, about 60 percent of deaths in India are attributed to non-communicable diseases, and this percentage is expected to increase due to changing lifestyles and external environments. There is, therefore, a growing demand for specialised quality healthcare services across the country, making it one of the fastest growing hospital markets globally. However, India’s existing infrastructure is not enough to cater to the growing demand and needs of the population, partly due to relatively low government spending on healthcare ( as a proportion of GDP), and over concentration of healthcare professionals in the urban areas, leaving rural areas underserved. Indian healthcare operators will have to adequately meet the needs of the market by improving their operational efficiencies and quality of services, especially in the areas of tertiary and quaternary care segments to treat chronic and complex diseases. IHH, as one of the largest global healthcare operators, is well-poised to address this need. Our hospitals in India has leveraged on the expertise and resources of the global IHH network to provide patients with the best-in-class medical care and treatments
Q: What makes you excited about healthcare space?
A: Modern healthcare is ripe for disruption, thanks to newer technology (mobile telephones, artificial intelligence, robotics) and we believe that India will play a leading role in using these technologies to create a new model of healthcare delivery. At IHH, I have a unique opportunity to innovate newer business model of healthcare delivery in India
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