Comments
Health-tech company HCAH, which provides out-of-hospital healthcare services, has acquired Nightingales Home Health Services, a specialty home healthcare service provider, in a share swap deal. Currently, HCAH has a bed capacity of 300, which it plans to expand to 800-1,000 beds by the end of FY24, according a top executive of the company.
The company claims to be one of the largest players in the out-of-hospital healthcare space with respect to bed capacity and revenues. Currently, it has a combined annualised revenue run rate (ARR) of ₹200 crore and plans to close FY24 with a turnover of around ₹300–400 crore, Vivek Srivastava, co-founder and CEO of HCAH, told businessline.
Nightingales has a strong focus on specialty home health care services for chronic diseases, including pulmonology, cardiology, neurology, metabolic diseases, orthopedics, geriatrics, and post-operative rehabilitation.
The acquisition will further increase HCAH’s geographic footprint in the country as Nightingales has an established delivery network across four metro cities: Bengaluru, Hyderabad, Chennai, and Mumbai. Currently, it has a headcount of 3,000 people.
Also read: Fortis to acquire Gurugram-based Medeor Hospital for ₹225 cr
Acquisitions
Before its most recent acquisition, the health tech company had already acquired Seniority, a senior care platform, in 2022. The latest acquisition is the company’s fourth, and so far, it has raised approximately $45 million, with its most recent funding round in January 2022.
Srivastava said, “We have a specialised focus on rehabilitation—both restorative and geriatric—through our transition care centres and home care services. Our recent acquisition of Nightingales is a testament to this commitment.”
Health rehab
According to the company, there is a growing demand for specialised out-of-hospital care in India’s health rehab market, which is valued at $17 billion according to a Redseer report, and estimated to grow at a CAGR of 15.5 per cent reaching $35 billion by FY2028.
Nightingales’ co-founder, Vishal Bali (Ex- Group CEO, Fortis Healthcare Ltd and Senior advisor - of TPG Growth), will join HCAH as a shareholder. Bali, said, “The combined entity of HCAH and Nightingales brings multiple synergies to consolidate, strengthen and lead the out-of-hospital care vertical in the Indian healthcare delivery sector. We expect that the scale and size achieved through this integration will lead health insurance companies to create new products that will support patients receiving out-of-hospital care.”
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.