September 12 & 13, 2013 • Shangri-La Hotel • Bangkok, Thailand Special Interest Session C6 Here Come the Big Boys - How to Survive and Do well in an Environment of Big Healthcare Corporations John Lee Managing Director - Principal Consultant, MuziHealth Consulting The “Big Boys” Are Coming! How to Survive and Do well in an Environment of Big Healthcare Corporations By John LEE Kohshun “Big Boys” of Asia IHH Healthcare: USD 10.0* Bangkok Dusit Med Services: USD 6.3* Ramsay Health Care: USD 6.2* Bumrungrad Hosp: USD 1.9* Apollo Hospitals: USD 1.8* Raffles Medical Group: USD 1.3* KPJ Healthcare: USD 1.25* * Market Cap in Billion USD “Big Boys” to Come Healthscope Ramsay-Sime Darby Healthcare Bangkok Chain Hospitals Fortis Healthcare Siloam International Hospitals Metro-Pacific (Healthcare Div) Joint Venture Siloam Hospital TBK Ayala Land Inc. (ALI) and Metro Pacific Investments Corp. (MPIC), are eyeing more investments in healthcare business. Internationalization of KPJ? Will Apollo Hospitals venture beyond Southern Asia Region? Why Large Healthcare Corp? Complexity of Healthcare Clinical-Management-Payer Increasing Specialization Capital Intensive Healthcare Examples of Other Examples Advantages? Economy of Scale Eg Supply-Equipment-H R Funding: Debt and/or Equity Sharing of Expertise Eg Benchmarking-Training Referral Network Influence Disadvantage? Loss of Identity/Vision/Mission Challenge of Uniting Key Players—eg Doctors Monopoly—non competition Over-commercialization Future of Stand Alone Hospitals Options: Join Them Create Your Own Continue to Stand Alone Other Option? Strategic Alliance Shared support services, clinical and non clinical. Benchmarking Shared education program Coordination of strategic moves Some economy of scale Maintain Hospital Identity Unique Clinical Service Single specialty hospital Eg: Cardiac Hospital or Cosmetic Surgery Hospital Serving unique market Active network of referral Possibility of alliance with similar hospitals For Your Consideration Know your position, market, resources, product. Why the market needs you? Know your threats, weakness. What prevents you from achieving? What makes a successful partnership? Who can be your partner? Creating Another Big Corporation Start with a flagship hospital Create and document system Acquisition plus greenfield development Integration Expand into related services John LEE Kohshun Principal Consultant MuziHealth Consulting Pte Ltd johnlee@muzihealth.com Copyright by John Lee Kohshun. This presentation slides shall not be redistributed or published without written permission by the author and MuziHealth Consulting Pte Ltd.