Fortis Healthcare plans to add 5-6 hospitals in 18 months

Fortis Healthcare, promoted by Malvinder and Shivinder Singh, says it aims to be the McDonald’s of this segment.

With 4,000 beds in 45 hospitals, it plans to add another five or six hospitals in 18 months, said a company official. In 2015-16, it signed six contracts, three with domestic partners in Udaipur, Indore and Guwahati, and three for areas abroad.

The chain has been building own hospitals when realty prices dip and expanding under a strategy of only operational and management control when these prices become unviable. Be it organic or inorganic growth, company-owned or on lease, it has gone from a single story at Mohali in 2001 to become India’s second largest in the hospitals segment. It acquired the Escorts chain of hospitals in 2005, the Malar hospitals in Chennai in 2008 and 10 hospitals from Wockhardt in 2009. From 2010 to 2013, it expanded outside India by buying health care assets in Australia, New Zealand, Hong Kong, Vietnam, Singapore and Dubai.

Rising debt then compelled a focus back on India. Between 2013 and 2016, it divested its assets abroad and has been focusing on improving the performance of its domestic business. It plans to soon take over the operations and management of two hospitals in Rajasthan, with about 100 beds.

Also, for 150 more beds at its Bannar ghatta hospital in Bengaluru and another 500 beds in the Gurgaon one. “In this process of expansion, Fortis will not be putting in even a penny. Its sole responsibility will be to manage these existing hospitals and giving them the Fortis brand name,” said a senior official at Fortis Healthcare, who did not wish to be identified.