After having given the go-by to the first round of privatisation drive by the National Health Services of the UK this year, the Rs 550-crore (Rs 5.5 billion) corporate hospital major Apollo is planning to bid when the next round starts in April next year.
If Apollo does become successful in its bidding in the UK, it will be its maiden venture in Europe. Apollo's engagement with UK hospitals until now was restricted to the Global Nurse Programme, through which it sent nurses from the country to countries like the UK.
The NHS is funded by the UK taxpayer and is managed by that country's Department of Health. It is trying to move towards part-privatisation by inviting bidders for management services, from the private health-care sector. One of the reasons for this move is stated to be the long waiting list at the NHS hospitals.
The subject of private participation in NHS-run health services has, however, been a subject of controversy because of concerns regarding higher burden on the taxpayer and the fear that hospitals managed by private firms might poach staff from the NHS hospitals.
Speaking to Business Standard, Prathap C Reddy, chairman of Apollo group of hospitals said, "We are planning to bid for private participation in the NHS this April, to carry forward our services in the UK."
Apollo has over the years been managing hospitals in India, at last count over 20 hospitals, and feels that it has garnered enough expertise in this area to spread wings to the developed world.
It is also working towards spreading its footprint in Africa and the Middle East. In all these countries also the group will not be investing any money and will only be managing the healthcare services.
Speaking about Apollo's other overseas expansion plans, Reddy said, "A hospital with a 500-bed capacity and a back-up lab facility is coming up in Doha by March 2005. Although the hospital will not carry our brand name with it, we will be involved in its management."
"This apart, we are also looking forward to managing a 100-bed hospital in Lagos, in Nigeria. This hospital, also, will start its operations from March 2005," Reddy said.
This apart Apollo's BPO subsidiary, Apollo Health Street, may see an equity investment from the New York based Bank One, part of JPMorgan Chase that was created this year as a merger between JPMorgan Chase & Co and Bank One Corporation.
Interestingly, the corporate hospital major has indicated that its BPO subsidiary could be the first company from the group stable that could go in for a Nasdaq listing.
While it is still not known as to how much of a stake Bank One would get, what is clear is that the deal would be one wherein Bank One would be giving business to Apollo Health Street. The deal is expected to go through in the next couple of weeks.
