Fortis looks to expand in Mumbai suburbs

Hospital chain Fortis Healthcare is looking to buy hospitals in Mumbai suburbs as part of its expansion plan. "We are actively looking to expand our footprint (in Mumbai and its suburbs)," said S Narayani, business head, Fortis Hospitals, Maharashtra.

Narayani, who heads the Western region for Fortis, said the hospital chain is looking at hospitals in three locations - Kalyan-Dombivli, between Malad and Borivali, and Navi Mumbai. Fortis is eyeing 200-bed hospitals in Kalyan-Dombivli and Malad-Borivali area and for 100-150 beds in Navi Mumbai.

Narayani said talks have reached advanced stages to acquire a plot in Kalyan-Dombivli area for a greenfield hospital. "Greenfield will take at least 2-3 years to come up, which is a long period in the healthcare industry that's evolving rapidly," Narayani said.

"We would be happy to acquire brownfield hospitals, something which is already in existence, so we can pick it up and get going fast," Narayani said.

It costs about ₹1.5 crore per bed in Mumbai suburbs and Navi Mumbai to set up a greenfield hospital.

Narayani added that there are not many options in Mumbai region that suits Fortis in terms of legal and regulatory requirements.

"We are very selective, as our board is strict on governance. Any potential asset that fails to meet the legal and regulatory requirements has to be dropped," Narayani said.

Meanwhile, Fortis is also evaluating collaborations with large nursing homes and smaller hospitals where it will extend its brand and offer OPD services that include pre and post-operative care, advanced screening facilities, pathology lab, and consultation services in essential specialties such as gynaecology, orthopaedics, oncology, cardiology, neurology and urology.

Fortis launched the first such collaboration called 'Fortis Medical Centre in Kharghar,' Navi Mumbai, in collaboration with 50 beds Kharghar Multispeciality Hospital.

"We want to be closer to our patients," said Nitin Kamaria, facility director of Hiranandani Hospital in Vashi.

Fortis will re-allocate capital in its key clusters to improve overall profitability and margins.