PE funds, hospital groups eye regional chains with a sizable footprint

Regional hospital chains are attractive as they cater to a specific geography

The consolidation in health care seems to have moved to regional hospitals. Last week, Everstone bought majority stake in Pune-based Sahyadri Hospitals, which runs eight hospitals in Pune, Nashik and Karad (871 beds) in Maharashtra.

Few others which could join the consolidation wave are Hyderabad-based Sunshine Hospitals (1,000 beds, four locations in Andhra Pradesh, Telangana and Odisha) and Punjab-based multi-specialty hospital Ivy Hospitals. Fosun International is said to be interested in Ivy Hospitals, which has hospitals in seven locations in Punjab. 

Investors, both private equity (PE) funds and hospital groups looking to expand reach, are eyeing regional chains with a sizable footprint