Fortis to add 5-6 hospitals in 18 months

The hospital chain is looking to expand its network in the metros as well as the smaller towns

Fortis Hospitals plans to add another five to six hospitals through the operations and management strategy in the next 18 months, as it plans to focus on expanding the network. In the near-term, the company plans to focus only on brownfield expansions. The hospital chain is focussing on this model to expand its network in the metros as well as the smaller towns. It plans to soon take over the operations and management of two hospitals in Rajasthan with more than 100 beds. Fortis has been eyeing to expand in markets like Africa and Bangladesh through the management and operations model for some time now.

A senior company official told Business Standard that its existing network has untapped potential and the company would like to focus on that before big ticket greenfield projects. "We plan to induct 150 more beds in its Bannarghatta hospital situated in Bangalore, another 500 beds in its Gurgaon hospital among other hospitals," a senior official from the company told Business Standard.

The official argues that when the company can grow to around 8,000-9,000 beds by not investing a huge amount, why not think of new hospitals. Unlike a greenfield project, in which each bed would cost Rs 1.2 crore, in this case it can cost anywhere between Rs 30 and Rs 40 lakh. At present, the Fortis network has around 4000 beds with 45 hospitals in its name.

Meanwhile, the company still relies on, and plans to rely on SRL diagnostics to facilitate diagnostics. The official states that SRL diagnostics continues to be the best in the diagnostics space. Fortis' board had approved the demerger in August 2016. According to the demerger, SRL diagnostics will be merged with Fortis Malar Hospitals. Fortis Malar business is now a part of the Fortis Hospitals business.