Vizag's Seven Hills to set up BMC hospital by '07

The Vizag-based Seven Hills Hospital, will execute a hospital project in Mumbai on behalf of the Brihanmumbai Municipal Corporation (BMC). The construction on the Marol Hospital project will begin by September end this year and is expected to be completed by March 2007.

Seven Hills has been offered a long lease of 60 years and would pay annual rent of under Rs 10 crore to the BMC for the premises.

The multi-super speciality hospital will cover an expanse of 17 acre with a capacity of 1000 beds, of which 200 beds will be set aside for municipal purposes, at concessional rates. The total investment of the project will be Rs 430 crore, of which Rs 250 crore will be financed by loans.

The equity participation of the promoters is Rs 100 crore and the balance is to be funded by six to seven banks including Punjab National Bank, State Bank of Travancore and Bank of Saurashtra. The project has been appraised by SBI Caps.

Jitendra Maganti, chairman, Seven Hills Hospital said, "We will begin recruitment of doctors and other medical staff in nine months. Once the hospital is fully operational, it will provide 29 super speciality healthcare under one roof."

Other companies that participated in the bid were Wokhardt, Hinduja Hospital and Raheja Hospital.Maganti said the hospital would cover approximately 10 lakh square feet with in-house residential area covering 3 lakh square feet. It is expected to house 1200 to 1500 staff. In India, 83 per cent of the health sector is dominated by private sector. Public sector accounts for a mere 17 per cent.

A joint study "Healthcare in India: The Road Ahead" done by the Confederation of Indian Industry and McKinsey in 2002 mentions that India has 1.5 beds per 1000 people while China, Brazil and Thailand have an average of 4.3 beds.

The study projects that changing demographic and disease profiles and rising treatment costs will double the healthcare expenditue over the next ten years.

Feeling the pulse

The multi-super speciality hospital will cover an expanse of 17 acre with a capacity of 1000 beds of which 200 beds will be set aside for municipal purposes

The total investment of the project will be Rs 430 crore, of which Rs 250 crore will be financed by loans

The equity participation of the promoters is Rs 100 crore and the balance is to be funded by six to seven banks including Punjab National Bank, State Bank of Travancore and Bank of Saurashtra