Fortis to set up two health cities in Punjab

Fortis Healthcare Ltd, one of India's largest private healthcare companies, is planning to set up two health cities in Punjab. Each of the proposed each city would likely to attract an investment of Rs. 500-600 crore and will have integrated township including a medical college along with a hospital, a dental college and a health management institute, etc. The Ranbaxy prmoted company is also planning to infuse about $ 0.5 billion spread over 4-5 years to fund its expansion plans, excluding investments in the health cities.

In an interaction with Business Standard, Fortis Healthcare, CEO & MD, Shivinder M Singh said, "We have sent the proposal to the Punjab government to set up health cities. So far the location is concerned, it is yet to be finalized."

Besides Punjab, the healthcare major plans to set up similar projects in Jaipur, Gurgaon, Lucknow. "We have plans to establish 10 health cities in India ,"he added. Commenting on the cost of project for a single heath city, he said, "Normally these kind of a project attracts an investment of Rs. 500-600 crore."

He added that the colleges cannot be a part of Fortis Healthcare, as Medical Council of India does not permit education for commercial purposes. When asked whether the company has plans to set up new entity, he said, "Already we have a society in this connection but let's see."

When asked about the proposed investment in expansion plans, he said, "We would invest close to $ 0.5 billion spread across 4-5 years for expansion purposes which includes pan India presence. This investment would be in addition to the investment in health cities which we intend to set up."

He further said that the company was in talks with the Gujarat government for setting up a project in the state. "We had asked the state government for land and also we are acquiring some land privately for the project."

Elaborating on the company's overseas expansion, Singh said, "We might set up a hospital in Kuwait, where we already have a diagnostic centre. As per the rules there, a company should run a diagnostic centre operational for at least two years before setting up new hospital."

Singh was in Mohali(near Chandigarh) to make an announcement that the Fortis Mohali facility has received an accreditation from US-based Joint Commission International (JCI), the oldest and the largest healthcare accrediting body in the world.

He said, "Receiving a JCI accreditation is a strong validation, we will continue to provide world-class healthcare at affordable prices and more units under the JCI banner."