Apollo Hospitals to add 2,000 beds in 2 yrs

Healthcare major Apollo Hospitals today said it will add 2,000 beds in the next 24 months for an estimated outlay of nearly Rs 1,200 crore.

The healthcare major, which had earlier planned to hive off its pharmacy chain, also said it has been put on hold for at least one year.

"We are in the process of adding 2,000 beds in next 24 months at different locations in India. The cost of beds will vary from Rs 50 lakh to 70 lakh," Apollo Hospitals Managing Director Preetha Reddy told PTI.

The hospitals will be a mix of reach model for smaller cities and big hospitals for larger cities and on an average cost of Rs 60 lakh per bed, the total investment on the 2,000 new beds will be around Rs 1,200 crore.

"Construction on 10 of the facilities is already underway," she added.

At present, Apollo Hospitals has over 8,500 beds capacity across 50 hospitals within and outside India.

When asked about the plans of the group for hiving off its retail pharmacy business into a separate entity, she said: "There are no plans for this in next 12 months, it is not happening in near future."

Last December, Apollo Hospitals Executive Director (Finance) Suneeta Reddy had said the firm planned to hive off its pharmacy vertical 'Apollo Pharmacy' over a period of time.

"Apollo pharmacy has become profitable and hence will be hived off as a separate business entity over a period of time. We will either tie up with a strategic partner or make it a public listed company," Reddy had then said.

Commenting on the Budget proposal to impose 5% service tax on treatment in private hospitals, paid either by individuals, insurance companies or firms, Preetha Reddy said it is a 'retrograde move' as it will make healthcare costly for the consumers.

"The government should have taken into consideration the fact that healthcare is the largest employer in the private sector," she added.