M&As to drive hospital expansion in uncharted territory, say experts

Inorganic expansion gives instant market share in a new geography, greenfield works better in markets where a chain already has a presence, say industry players and analysts

The past few years have seen mergers and acquisitions (M&A) activity in the hospital space heating up, and industry insiders feel that the trend is likely to sustain going forward.

Analysts and hospital operators both agree that M&As significantly reduce the go-to-market time and give an instant market share, access to patients in a certain geography. Greenfield projects typically have a 3-4 year window.

A case in point is Bengaluru-based Manipal Hospitals which has been on the lookout for acquisitions for a while. It bid for Fortis Healthcare in 2018 in a deal that finally went to Malaysia’s IHH. It