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Listed hospital chain Narayana Health (NH) intends to expand its orthopaedic division and is targeting revenue of ₹100 crore over the next six quarters.
NH recently acquired Orthopedic and Trauma Hospital, a part of the Sparsh Group of Hospitals, which it expects to significantly contribute to the growth of its orthopaedic segment.
It presently contributes around ₹48 crore, Emmanuel Rupert, Managing Director and Group CEO, Narayana Health, told businessline.
While the hospital chain is well-known for its cardiac care, Rupert noted, that there has been a shift in contributions from all specialties over the years and hopes to continue in this direction in the future. In FY22, the hospital chain posted revenues of ₹3,735.88 crore.
“Today, the contribution of cardiac services is around 35 per cent. In fact, oncology alone contributes around 15 per cent. Over a period of the next two financial years, we expect this to be close to eighteen percent,” said Rupert.
Growth strategy
Similarly, he said that the latest acquisition is also in line with NH's strategy to grow its business across all specialties.
He said, “Currently, orthopaedic is less than 5 per cent of our total business, and we want to take this up across the network as a major focus area. We took over the operations on October 1, 2022, and we have been laying the operational groundwork completely.”
Another area that the NH is working to develop is its managed care services.
“We have opened two large clinics, one in the electronic city area and the other one in the HSR area, where we have a small community hospital. Through the community connect and managed care subscription model, we would like to give patients their regular health requirements on a daily basis, whether it is wellness or any kind of chronic care that requires close monitoring,” Rupert said.
Going forward, he said that they want to build on this model. “Since it has only been around six months since we started this work, we’ve seen very interesting progress. We will keep scaling it up as we have seen some interesting and encouraging signs in the early stage.”
Asked whether the bed capacity across its network of hospitals has increased, Rupert said that the focus has been on rotating patients, which otherwise don’t get counted as occupancy. “Rather than focusing solely on beds and occupancies, we are attempting to determine how much more we can enhance efficiency within the same capacity.”
The company has a network of 21 hospitals and four heart centres across India and the Cayman Islands with over 6,121 operational beds and a bed capacity of 6,373.
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