Bank One set to take 30% in Apollo's BPO arm

The Rs 550-crore healthcare major, Apollo Hospitals Group, is working towards closing a deal with New York-based Bank One that is likely to take a 30 per cent stake in its BPO arm, Apollo Health Street Limited.

This apart, the healthcare major has ventured into Doha through a deal for managing a multi-speciality clinic, which is its first clinic in Doha.

Prathap C Reddy, chairman of Apollo Hospitals Group, said: "Bank One is likely to take close to 30 per cent stake in our BPO subsidiary, Apollo Health Street. The deal is likely to be through in a week's time."

Bank One, is a part of JPMorgan Chase that was created as a merger between JPMorgan Chase & Co and Bank One Corporation. Business Standard had earlier reported that Bank One is expected to take a minority stake in Apollo Health Street.

Bank One, which has a number of hospital groups as its clients in the US, is expected to give business to Apollo Health Street for the equity stake.

The nature of work that could be outsourced to Apollo's BPO subsidiary is billing, coding and adjudication. "Bank One has a lot of hospital groups as its clients in the US that can become a big money spinner for our BPO business. The deal is very clear, that they give us some business and we give them some equity," Reddy said.

The deal for the multi-speciality clinic in Doha has taken place through the group's subsidiary, Apollo Health and Lifestyle Limited, which delivers primary healthcare services through branded Apollo clinics across India and its neighbouring countries.

Reddy said, "We have tied up with a local partner in Doha, Sheikh Abdulla Bin Qasim, for this purpose." Apollo has not invested any money in this venture and will only be providing management services to the facility, he added.

The clinic, however, carries the brand name of Apollo. "It is a multi-speciality clinic that was inaugurated recently," Reddy said.