To leverage the domestic healthcare market, hospital chain Fortis Healthcare is planning to expand in the Indian market in a big way by adding 500-600 beds per year to its portfolio. The expansion will be primarily at its existing facilities spread across the country. The healthcare company also said it would not have any major expansion in its overseas facilities.
Speaking on the sidelines of inauguration of Hearth Failure Management Centre at Fortis Malar Hospital on Friday, Aditya Vij, Fortis Healthcare CEO, said that at present, the hospital chain has around 4,800 commissioned beds. ?Last year was an exception, when the company added 800 beds. Our existing facilities have a potential to touch the number of 10,000 beds. Our priority is to make use of the latent potential at our existing facilities.?
He said the company was not averse to looking at greenfield projects as well. Elaborating on expansion, he said the company is planning to complete its recently launched project in Bangalore in next two years. In Bangalore, it plans to double the bed capacity from 250 beds to 480 beds.
The other brownfield expansion would be in places such as Noida, Punjab, Guragon, Ludhiana, NCR and in other regions. Admitting that Fortis expansion has not been not aggressive compared with the peers, Vij said: ?We are a younger chain with only 13 years of existence. The latest expansion programme, adding of 500-600 beds every year, is a significant move.?
Across its hospitals, the occupancy ratio has been close to 79% and the ARPOB (average revenue per occupied bed) on an annual basis is around R1.4 crore, said Vij.
It may be noted that Fortis has been aggressive in expanding overseas markets. At one point it made eight acquisitions in six countries in 15 months.
However, it divested its international businesses including Dental Corporation, Australia; Fortis Hoan My, Vietnam; and Quality Healthcare, Hong Kong. Last year the company completed divestment in Quality Healthcare, Hong Kong to BUPA.