Columbia Asia looks at cluster approach for growth, plans hospital in Pune

Malaysia-based hospital chain is also opening hospitals in Kolkata and plans to expand in NCR too

Columbia Asia Hospitals, the Malaysia-based hospital chain, is taking a cluster approach of building multiple 150-200 bed hospitals in main cities across India, with the newest being planned in Pune by 2020.

The Indian unit, based in Bengaluru, is also opening hospitals in Kolkata and plans to expand in the National Capital Region as well.

"Cluster enables us to offer specialised services. The cluster strategy is integral part  of our strategy and offers the best of both worlds," said Dr Nandakumar Jairam, Chairman and CEO of Columbia Asia Hospitals in an interview. "After Bengaluru, Pune will be the second cluster, and we are building a new hospital there. Similarly, we will set up clusters in other cities."

The hospital has an existing 100-bed multi-facility close to Kharadi in Pune. The Columbia Asia Group is owned by more than 150 private equity companies, fund management organisations and individual investors, the firm said. 

So far, Columbia Asia has invested over Rs 16 billion (Rs 1,600 crore) in  12 multi-speciality hospitals in the country, building the entire infrastructure on its own. As it expands into newer  cities, the firm is looking at an asset-light model, he said.

Columbia Asia and other chains such as Aster and Sakra are looking to tap a growing segment of people shifting to private healthcare from public services. In urban areas, 68 per cent of the people used private hospitals in 2014, up from 57 per cent in 1995-96, according to an NSS study. 

India's National Health Policy looks at affordable quality health care services for people across the country and advocates innovative methods to involve the private sector in offering healthcare services. 

"There is huge potential for growth in tier-1 and tier-2 cities. The middle class is aspirational and wants the best treatment at reasonable price,"  said Jairam.

The hospital chain says it has digitised its entire operations and is using the data generated to analyse and improve access to treatment for patients. It also has emerged as post-graduate centre for specialised areas, offering courses to its internal team of doctors that helps in retention in a highly competitive market.

"The biggest challenge is attrition and lack of skilled manpower," says Jairam, adding that there is increased competition for nursing staff who are lured by better offers in the Gulf. He says that several doctors of Indian origin are keen to return to the country, making it easier to get qualified professionals in critical medical areas.

The firm says the government should remove restrictions on the private healthcare sector and have an independent body that can rate hospital services across the country.