Case | HBS Case Collection | October 2005 (Revised June 2007)

Apollo Hospitals--First-World Health Care at Emerging-Market Prices

by Felix Oberholzer-Gee, Tarun Khanna and Carin-Isabel Knoop

Abstract

The Apollo Hospitals Group, one of Asia's premier health care organizations, had come to rival the best health care organizations on the globe. Apollo offered advanced medical procedures, such as cardiac surgery using the beating heart technique, at very high levels of quality but at a fraction of the cost of hospitals in the West. Apollo's managers must decide how best to capitalize on the group's remarkable medical capabilities. One option was to bet on global medical tourism by trying to attract patients from Asia and worldwide needing advanced medical procedures. Thailand had set the example for medical tourism and attracted more than one million patients a year, most of them undergoing plastic surgery. Another option Apollo considered was to build and manage hospitals abroad.

Keywords: Vertical Integration; Decision Choices and Conditions; Health Care and Treatment; Global Strategy; Developing Countries and Economies; Health Industry; Thailand; United States; India;

Citation:

Oberholzer-Gee, Felix, Tarun Khanna, and Carin-Isabel Knoop. "Apollo Hospitals--First-World Health Care at Emerging-Market Prices." Harvard Business School Case 706-440, October 2005. (Revised June 2007.)