Lanka Hospitals Corporation Ltd. (LHCL) will be saving more than Rs 36 million by its Apollo Hospital name change to Lanka Hospitals as LHCL will not be paying royalty to India's Apollo Hospitals anymore, a company official said.
He told the Sunday Times FT that this was the main reason why LHCL did not wish to pursue the royalty agreement between Apollo India and LHCL for the use of Apollo’s name which came up for review recently. The agreement ended on Monday with the company officially changing its hospitals’ name to Lanka Hospitals on that day itself with a new logo.
“Since the hospital is established, the management did not see a reason to negotiate the Apollo name. We are confident by ourselves,” he said on the sidelines of a press event to launch the new logo and the name. He said Lanka Hospitals is planning five hospitals within 10 years in five different regions.
After the Supreme Court verdict on Apollo’s former holding company Sri Lanka Insurance Corporation (SLIC), (when it was reverted to the government in early June), the government became the new owners of SLIC’s majority stake in Apollo. This change saw Apollo’s director board change with the Defence Secretary Gotabhaya Rajapaksa becoming LHCL’s chairman.
Mr. Rajapaksa addressing the gathering at the press conference noted that Lanka Hospitals will be dedicating a certain amount of beds for the soldiers (every year) and will forge ahead with its motto caring and curing.