International Oncology Services Private Limited initially had plans to start operations as a stand-alone facility offering cancer care to patients in Delhi, India, but escalating real estate costs combined with the capital intensive nature of the business were a big barrier. Moreover, the high gestation period in a greenfield project led the company founders to think of an alternative business model: a collaborative arrangement on a hub and spoke basis with an established healthcare provider in the city of Jaipur. This was a success. The company could leverage the infrastructure and in-patient facilities of the partner hospital, while adding its own medical, technological and research expertise to offer services at a cost-effective price. Though the company grew rapidly in its initial years, continued success was by no means assured. The management has to decide whether to expand with a single partner or adopt a multi-partner approach to take the business to the next level of growth.
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