Apollo Hospitals to focus on rural areas.

Apollo Hospitals plans to ride the next wave of growth with expansion in rural sector, Prathap C Reddy, Chairman, said. The hospital chain plans to add at least 14 Reach Hospitals in rural regions at a cost of Rs. 1,800 crore by 2016 and plans more in the coming years.

Reddy told Business Line that one of the benefits of tapping into the rural segment is the cost of setting up the infrastructure, which is lower by about 25 per cent as compared to metropolitan cities.

The focus on Reach hospitals has been recorded in the company's annual report for the financial year ended March 31, 2014 as well.

'Despite the ability and the willingness to pay for quality healthcare services patients in these areas are forced to opt for moderate or sub-standard facilities for lack of a better alternative. These catchment areas can prove to be low hanging fruit for healthcare service providers who are able to offer quality healthcare services with excellent clinical outcomes,' the company stated in its annual report.

The company had earlier said that it has received board approval to invest Rs. 2,100 crore for expansion over next three years.

HBL