Fortis Healthcare Ltd plans to add 600 beds to the existing 4,500 operational beds by the end of the financial year, according to a senior company executive. Along with this Fortis is also planning to add 2,200 beds across its existing hospitals over the next three years. Last year, the company had added approximately 150 beds.

“This upward trend is expected to continue over the next two to three years. This expansion will increase our capacity by almost 55 per cent compared with our current capacity,” Dr. Ashutosh Raghuvanshi, CEO, Fortis Healthcare told businessline.

Fortis Healthcare will also cumulatively invest about ₹600 crore this year. Of this, ₹400 crore is allocated to the growth capex and will be utilised in constructing new buildings and infrastructure. The remaining ₹200 crore is for replacement and maintenance, including routine operations and maintenance expenses, such as equipment replacement and upgrades.

Dr Raghuvanshi said the company preferred brownfield projects over greenfield as the time span required for the former is shorter, and the ramp-up period is much faster. “We aren’t opposed to greenfield projects, but we aren’t particularly enthusiastic about them either. Only where brownfield assets may not be readily available, we would proceed with a greenfield setup. We’ve been exploring options, particularly in areas like greater Bombay region areas and would consider them if suitable opportunities arise, including in the northern part of Bengaluru and Kolkata,” he added.

In the next six months, Fortis is also planning to establish its first centre for mental health therapy likely in Gurgaon, NCR.

Challenges

Dr Raghuvanshi said that supply of nursing talent for the healthcare segment is a challenge for the country, “We believe it’s not just a business concern but also a social responsibility to address this issue. Therefore, we are actively studying the process of establishing nursing institutions, with plans to initiate at least a couple of them in the next financial year.”

While discussing the company’s portfolio and profitability, Dr Raghuvanshi mentioned that Fortis consistently analyses its portfolio for optimisation. The company divested two facilities while simultaneously acquiring one. “One issue we encountered was that the two assets in Chennai were somewhat suppressing the EBITDA. Additionally, we have identified two or three other units that have been underperforming, and we have plans in place to address those issues,’‘ explained Raghuvanshi.

Inspite of some legal concerns which impact margins of the company , he said they are still able to maintain their guidance of 20 per cent on the hospital segment for next year.

Dr Raghuvanshi said that Fortis is in a strong financial position, underlining a healthy balance sheet with minimal debt. “We anticipate that all our legal troubles will be resolved over the next year or so. At that point, the overhang on the company will dissipate, and we can be more accurately compared with our peers in the industry,” he added.

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