The Hindu Business Line : Fortis looks at pan-India expansion

“In the next three years, our plan is to turn into a national player from a North India-centric player. As part of this we intend to have 40 hospitals under the Fortis group across 14 States by 2010.”

Our Bureau

New Delhi, Aug. 27 Ranbaxy promoted group company Fortis Healthcare on Monday said that it planned to invest Rs 1,800 crore for a pan-India expansion, including setting up a super speciality hospital in Gurgaon and another 28 hospitals by 2010.

He, however, said the total outlay for the planned expansion, which could include greenfield facilities, management contracts and acquisitions, could be to the tune of $0.5 billion. Of this, the company’s contribution would be around Rs 1,000 crore, Mr Singh said.

Expansion plan

“Currently, the company operates 12 hospitals, of which four were acquired, four under management contract and another similar number are own developed facilities. Going forward, we intend to maintain this ratio,” he said. The company plans to tap the western and southern parts of India by the end of this year.

Post-expansion, the company is targeting to have 7,000 beds, treat 17.5 lakh patients and perform two lakh operations and surgeries annually.

Of the announced investment, Rs 800 crore will be spent on setting up the seven-star super-specialty flagship hospital in the NCR, Fortis International Institute of Medical Sciences (FIIMS). The 10-storey super specialty hospital, which is commonly referred to as Medicity, will be spread over 10.7 acre, with a built up area of 13 lakh sq. ft.

Flagship hospital

The company will start construction of the 950-bed hospital on Wednesday, with the laying of the foundation stone by the Haryana Chief Minister, Mr Bhupinder Singh Hooda.

“Fortis has been providing world class healthcare at affordable prices. FIIMS is going to be our flagship hospital and it will contribute significantly in setting new standards of healthcare delivery in the country,” said Mr Singh.

The first phase that will be completely funded through debt is expected to be completed in three years, in which the hospital will have 350 beds, of which 250 will be critical care beds. “We will kick off the super specialty hospital project through debt and later on it will be a mixture of debt and internal accruals,” said Mr Singh.

Medical colleges

Fortis is also planning to set up 10 medical colleges over a period of 10 years, and is currently in discussions with seven State Governments, including Punjab, Haryana, Rajasthan and Gujarat to acquire land for the project.

The company is also looking at a multifold increase in its employee base as a result of the widespread expansion plans.

“The company would recruit an additional 300 doctors to meet the requirements of the on going expansion. We currently employ 800 doctors and 4,000 nurses across our facilities,” said Mr Rajen Ghadiok, Director, Medical Operations, Fortis.

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