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Hospital chain Fortis Healthcare Ltd has said it would set up 500-600 beds every year, adding for the next two-three years, its expansion plans would be focused on India.
Speaking on the sidelines of the inauguration of the country’s first comprehensive Hearth Failure Management Centre at Fortis Malar Hospital here, Aditya Vij, chief executive officer, Fortis Healthcare Ltd, said the hospital chain had got 4,800 beds commissioned at present.
Last year was an exceptional year, during which the company added 800 beds, said Vij.
‘Enough money for expansion’
“Our existing facilities have the potential for another 10,000 beds. Besides, we will also look at greenfield (new) projects,” said Vij, adding investment on a bed would cost Rs 60 lakh to Rs 1.2 crore, depending on the location.
He said the company had enough money for expansion.
Fortis has been expanding aggressively abroad. At a point, it made eight acquisitions in six countries in 15 months.
However, it has divested its international businesses including Dental Corporation, Australia; Fortis Hoan My, Vietnam; and Quality Healthcare, Hong Kong. Last year, the company completed divestment in Quality Healthcare, Hong Kong, to BUPA.
The international business now primarily includes RadLink, the company’s radiology and imaging business in Singapore, and Fortis Surgical Hospital in Singapore, Mauritius and Sri Lanka and a lab in Dubai.
In India, the company is planning to complete its expansion project, from 250 beds to 480 beds, in Bangalore in the next two years.
The other expansion would be at its facilities in Noida, Gurgaon and Ludhiana, among other regions.
On whether the company would float a new entity to focus on tier-II cities, like Apollo Health Street from the house of Apollo Hospitals, Vij said, “While the parent brand will continue, we can look at segmentation within the brand.”
While admitting that Fortis’ expansion was not as aggressive as its competitors, Vij said, “We are a younger chain, with only 13 years of existence. The expansion programme, 500-600 beds every year, is a good number.”
Across its hospitals, the occupancy ratio has been close to 79 per cent and the average revenue for every occupied bed is Rs 1.4 crore a year, said Vij.
