Why Shalby Hospital Is The Best Hospital Franchise In India In 2024

on Dec 23, 2023 | 2770 views

Written By: Shruti Agrawal

Imagine a franchise that doesn't just heal bodies but also nurses your entrepreneurial dreams back to health. Shalby Hospital Franchise infuses innovation, strategies, and a knack for out-of-the-box thinking into the very DNA of healthcare franchising.

It's where X-rays and MRI machines have an X-factor and are as cutting-edge as the business methodologies.

Introduction To Shalby Hospitals Franchise

Shalby Hospitals is an Indian organization that was established in Ahmedabad as a joint replacement centre in 1994 by Dr Vikram Shah. It has since grown into a chain of 15 hospitals present in 12 Indian cities across 7 states, with a network of 11 hospitals in India.

The group offers a wide range of medical disciplines, including cardiology, cardiothoracic surgery, dental care, oncology, and trauma, among others. Shalby Hospitals is known for its patient-centric approach and clinical excellence, and it is the largest chain of multispecialty hospitals in Western and Central India.

The organization is dedicated to providing world-class healthcare services and is recognized as the world's No. 1 orthopaedic centre, having performed over 100,000 joint replacement surgeries.

Shalby Hospitals is part of the Shalby Hospitals Group, which has a presence in multiple cities of different states, with 10 multispecialty and 5 Shalby Orthopaedics Centers of Excellence.

Shalby Hospital Franchise Model

Shalby Hospitals offers franchise opportunities in India through its SOCE (Shalby Orthopedics Centre of Excellence) franchise program. Shalby is planning to add 50 centres in the next 3-5 years and has already signed up for 5 of them.

  • Prerequisites: The franchisee should have a prior track record of running a business venture, a keen interest in or knowledge of the healthcare sector, and be open to operating under the framework and specifications given by Shalby.
  • Business Models: Two types of Models- Franchise Owned and Franchise Operated (FOFO) and Franchise Owned Shalby Operated (FOSO).
  • The SOCE franchise cost: the investment is in the range of INR 6 to 7 crore, with a bed capacity of 25 to 50 beds.
  • Area Required: Minimum of 10,000 sq. ft and a maximum of 30,000 sq. ft in a key catchment area.
  • Payback period: 48 to 60 months
  • Support: Shalby will provide full-fledged support to the franchisee right from set up to day-to-day operations. The franchisee will undergo mandatory training at Shalby.

Shalby will provide full-fledged support to the franchisee right from set up to day-to-day operations.

Steps To Set Up Shalby Hospital Franchise In India

By following these steps, you can become a part of Shalby Hospitals' network and contribute to the growth of their brand in the healthcare sector, particularly in the field of orthopaedics,

  • Choose the right business model: Shalby Hospitals offers two business models - Franchisee Owned and Franchise Operated (FOFO) and Franchise Owned and Shalby Operated (FOSO).
  • The ideal partner for a FOFO model is a real estate owner, hospital owner, or doctor who will be responsible for setting up and running the centre.
  • Meet the investment requirements: The investment for a Shalby Hospitals franchise ranges from INR 6 Crore to 7 Crore.
  • Select the location: The franchise must be set up in a key catchment area. Shalby Hospitals aims to expand its footprint through the franchise model in both metro and non-metro cities across India.
  • Contact Shalby Hospitals: Reach out to Shalby Hospitals through the contact details provided on their website. They will guide you through the entire process of setting up the hospital, purchasing equipment and recruiting key doctors, and senior management staff.
  • Complete the franchise agreement: Sign a franchise agreement with Shalby Hospitals, which will outline the terms and conditions of the partnership, including the revenue sharing and other operational details.
  • Receive support and training: Shalby Hospitals will provide full-fledged support to the franchise, including guidance and assistance in day-to-day operations. The franchisee will also have to undergo mandatory training at Shalby.
  • Comply with guidelines: The franchisee must adhere to the framework and guidelines set up by Shalby Hospitals.

Future Prospects Of Healthcare Franchises In India

The healthcare sector is one of the largest sectors of the Indian economy, in terms of both revenue and employment. The demand for quality medical services is constantly increasing, giving many favourable opportunities for healthcare franchises in India.

India's healthcare industry has been growing at a Compound Annual Growth Rate of around 22% since 2016 and has reached USD 372 Billion in 2022.

The healthcare sector in India is also expected to reach a size of USD 188 billion by 2030, and the next decade is expected to be India's decade in healthcare.The future of Indian healthcare is expected to be more technologically innovative, reach out to people more at their homes or clinics, and hence become more personalized and more affordable.

Why Invest In Shalby Hospital Franchise

Shalby Hospitals' franchise model offers several benefits to both the franchisees and the organization itself. Some of the key advantages include:

Guided support:

  • Shalby Hospitals provides comprehensive guidance to the franchisee throughout the process of setting up the hospital, purchasing equipment and recruiting key doctors and senior management staff.

Asset light strategy:

  • Shalby Hospitals follows an asset-light model, allowing for swift diversification and expansion.
  • This strategy enables the company to focus on providing quality healthcare services while minimizing the need for significant upfront investments.

Flexible business models:

  • Shalby Hospitals offers various flexible business models, including Franchise Owned Shalby Operated (FOSO), where the franchisee owns the real estate or hospital and Shalby operates it.
  • This allows for different partnership opportunities, catering to various interests and capabilities.

Targeted expansion:

  • Shalby Hospitals plans to add 50 centres in the next 3-5 years, with a focus on orthopaedics and other specialities that are expected to grow exponentially through the franchise model.
  • This targeted expansion strategy allows the company to tap into specific market opportunities and strengthen its position in the healthcare sector.

Revenue sharing:

  • In the FOSO model, Shalby Hospitals offers a fixed revenue-sharing arrangement, which provides a steady income stream for the franchisee while allowing Shalby to collect a larger portion of the revenues.

Medical tourism growth:

  • Shalby Hospitals is positive about the growth of medical tourism, with plans to target revenues of INR 15 crore to INR 20 crore more from the franchise business.
  • The franchise model allows the company to leverage its expertise in orthopaedics and other specialities to attract more international patients.

Other Hospital Franchises To Consider For Investment

Max HealthCare Franchise

Max Healthcare Institute is a private hospital, which has a multiple chain of hospitals and is headquartered in Delhi. It opened its first medical centre in South Delhi's Panchsheel Park in 2000.

Since then, the organization has grown significantly and now operates a large network of hospitals and clinics across India. It operates 17 hospitals with over 3500 beds and more than 4800 clinicians.

Some key aspects of Max Healthcare include:

  • Services: The organization offers a wide range of healthcare services, including treatment for various specialities such as heart surgery, cancer, eye, spine, bariatric surgery, dental, urology, kidney replacement, and liver transplant.
  • ISO Certification: Five hospitals of Max Healthcare are ISO 9001:2000 certified.
  • Patient Assistance Centers: Max Healthcare also operates Patient Assistance Centers in Nairobi, Kenya, Lagos, Nigeria, and Dubai, UAE.
  • Max Lab and Max@Home: These are the pathology division and home medical services division of the organization, respectively.

Medanta Hospital

Medanta, a for-profit private hospital network based in Gurgaon, India, was founded in 2009 by cardiac surgeon Naresh Trehan. The chain has grown significantly since its inception and now operates five super-speciality hospitals under the Medanta brand.

These hospitals specialize in various fields, including cardiac sciences, neurosciences, oncology, digestive and hepatobiliary sciences, and orthopaedicsMedanta's franchise model allows it to expand its presence to smaller cities, making its services more accessible to a wider range of patients.

Medanta requires a specific space for its franchise units, with a suggested range of 3000-4000 sq ft. It may also require prior experience in the healthcare industry, particularly in hospital management and operations.

Fortis Healthcare Franchise

Fortis Healthcare, a leading chain of hospitals in India, offers franchise opportunities, including in the field of IVF. The company operates a network of hospitals across the country and internationally, with plans for further expansion. It is committed to providing a first-class scientific approach to medicine and offers educational programs that emphasize the development of excellence in clinical skills.

The company has been eyeing expansion and plans to take over the operations and management of additional hospitals shortly.The investment range for a Fortis IVF franchise is typically between Rs. 20 lakhs to INR 5 crores, and the area required is more than 500 sq. ft.

In conclusion, the landscape of healthcare in India presents a promising avenue for those seeking to invest in hospital franchises. The country's growing population, increasing healthcare needs, and evolving medical infrastructure make it an opportune moment for such ventures.

To know more about the franchise opportunities available in the healthcare and hospital sector and also to explore other sectors for initiating your franchise business, you must talk to the experts of FranchiseBAZAR.

Disclaimer: The brands mentioned in this blog are the recommendations provided by the author. FranchiseBAZAR does not claim to work with these brands / represent them / or are associated with them in any manner. Investors and prospective franchisees are to do their own due diligence before investing in any franchise business at their own risk and discretion. FranchiseBAZAR or its Directors disclaim any liability or risks arising out of any transactions that may take place due to the information provided in this blog.

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