Apollo Hospitals was inaugurated in 1983 by Shri Giani Zail Singh (President of India). The first Apollo Hospital was in Chennai. The hospital commenced commercial operations the next year. Dr. Prathap Reddy has always maintained that comprehensive health insurance is essential to optimize the medical equation. Apollo Hospitals, under his guidance, was always the fore runner in this field. As early as 1986, a medical insurance scheme was introduced, in collaboration with United India Insurance Company Limited.
The group showed great promise, and blossomed very fast. Within three years of operation, they announced their first dividend and by 1988 had expanded to Hyderabad.