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Yahoo
6 days ago
- Business
- Yahoo
IHH Healthcare's Indian subsidiaries Fortis and Gleneagles join forces
IHH Healthcare has announced a partnership between Fortis Healthcare and Gleneagles Healthcare, its Indian subsidiaries, aimed at strengthening business performance along with sustainable growth. Through an operation and maintenance (O&M) services agreement, Fortis will oversee the operations of five hospitals within the Gleneagles India network, marking a pivotal move to strengthen IHH's healthcare platform across India. The collaboration is anticipated to improve clinical excellence, operational scale, and geographical reach. Moreover, the agreement aims to preserve the talent and financial autonomy of each entity. This partnership is poised to deliver patient-focused care by leveraging the complementary capabilities of both networks and is expected to unlock operational and financial synergies. The execution of the agreement is subject to the acknowledgements from relevant parties and receipt of necessary approvals. IHH Healthcare group CEO Dr Prem Kumar Nair said: 'The O&M services agreement reflects our commitment to long-term growth in one of our most important markets, by deepening collaboration that will enhance patient care and outcomes and drive greater operational efficiencies. 'With our shared commitment and complementary strengths, we are creating a comprehensive pan-India hospital network to meet the evolving healthcare needs of millions across the country.' Gleneagles Healthcare India operates six hospitals with more than 1,500 beds across Chennai, Mumbai, Bengaluru, and Hyderabad. It specialises in a wide range of medical disciplines, including cardiology, gastroenterology, and organ transplants. Fortis Healthcare has 27 facilities and approximately 4,750 operational beds. In April 2024, Fortis Healthcare expanded its reach by opening a new multi-speciality tertiary care hospital in Bengaluru, Karnataka. "IHH Healthcare's Indian subsidiaries Fortis and Gleneagles join forces" was originally created and published by Hospital Management, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Time of India
23-07-2025
- Business
- Time of India
Fortis, Gleneagles India Collaborate under IHH to manage Operations
New Delhi: IHH Healthcare Berhad ('IHH') has announced a collaboration between its India subsidiaries - Fortis Healthcare Limited ('Fortis'), and Gleneagles Healthcare India Private Limited ('Gleneagles India'). The collaboration aims to drive stronger business performance and long-term sustainable growth. By combining the operational and financial strengths of Fortis and Gleneagles India, the partnership seeks to unlock significant synergies. According to IHH, this alliance will integrate the expertise of both brands across 11 states, enhancing patient care delivery and improving access to doctors. It is stated that under operation and maintenance services ('O&M Services') agreement, Fortis will manage the operations of five out of six hospitals under the Gleneagles India network. This agreement is conditional on receipt of acceptance and acknowledgement of relevant parties. Dr Prem Kumar Nair, Group Chief Executive Officer of IHH, said: 'The O&M Services agreement reflects our commitment to long-term growth in one of our most important markets, by deepening collaboration that will enhance patient care and outcomes and drive greater operational efficiencies. With our shared commitment and complementary strengths, we are creating a comprehensive pan-India hospital network to meet the evolving healthcare needs of millions across the country.'
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Business Standard
23-07-2025
- Business
- Business Standard
IHH inks Fortis-Gleneagles O&M deal to strengthen pan-India platform
Under the agreement, Fortis will manage operations of six Gleneagles hospitals and one clinic, earning a monthly fee and expanding its bed capacity and national presence Sanket Koul New Delhi In a bid to consolidate its healthcare presence in India, Malaysian healthcare major IHH on Wednesday announced an operation and maintenance (O&M) services agreement between its two subsidiary companies—Fortis Healthcare and Gleneagles Healthcare India (GHIPL). As part of the agreement, Fortis will manage the operations of five out of the six hospitals and one clinic under the Gleneagles India network. The agreement will become effective for the sixth hospital—Gleneagles BGS Hospital in Karnataka—upon receipt of acceptance and acknowledgment from certain third parties. The move expands Fortis' geographic footprint by increasing beds under its management, and provides incremental revenue and improves profitability through direct service fees. As part of the deal, Fortis will be entitled to receive a monthly service fee at the rate of 3 per cent of the net revenue of GHIPL's hospitals business on a consolidated basis, which stood at Rs 718.5 crore as of March 31, 2025. Fortis' consolidated revenue stood at Rs 7,783 crore for the full financial year 2024–25 (FY25), of which Rs 6,528 crore came from its hospital business. The healthcare major currently has 4,750 operational beds, including O&M beds, in 27 facilities. It recorded 69 per cent bed occupancy, generating an average revenue of Rs 2.42 crore per occupied bed in FY25. The Delhi-based chain, however, added that the arrangement with Gleneagles is being done on an arm's length basis, as determined by an independent financial adviser. 'The arrangement does not entail any acquisition and is only for the provision of O&M services,' Fortis said in a regulatory filing on the exchanges. The filing also stated that GHIPL shall bear all third-party and out-of-pocket expenses incurred by Fortis, in the manner laid down in the definitive documents. Commenting on the deal, Prem Kumar Nair, group chief executive officer of IHH, said the O&M services agreement reflects the company's commitment to long-term growth in one of its most important markets. He added that this is being done by deepening collaboration to enhance patient care and outcomes and drive greater operational efficiencies.
Business Times
13-07-2025
- Business
- Business Times
With medical costs under the microscope, IHH Healthcare group CEO continues to eye expansion
[SINGAPORE] As IHH Healthcare looks to streamline its operations and expand in its current markets, it is also keeping its eyes peeled for opportunities to grow in new countries, said group chief executive Dr Prem Kumar Nair. When Dr Nair took over the role of group CEO in 2023, he aimed to transform the company to become leaner so that it can continue to grow. 'This is a group that has grown by M&A (mergers and acquisitions) – every time we buy something or we expand, we try to synergise as much as possible… but what happens is, over a period of time, the red tape and bureaucracy build up,' he said. But he noted that 'most of (the) countries (where it operates) have got scope for expansion' by adding hospital beds, or acquiring new hospitals, or building ambulatory care centres. The healthcare operator, which has a presence in 10 countries including Singapore, Malaysia, India, Turkey and China, has grown steadily over the years by acquiring new hospitals. In 2024, it bought Island Hospital in Penang and Timberland Medical Centre in Kuching, Sarawak. Before that, its Indian subsidiary Fortis also bought two hospitals, while its Turkish subsidiary Acibadem Healthcare expanded into East Europe. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Its acquisitions aim to be earnings accretive. For example, Dr Nair said, Island Hospital added 'a new dimension' to its Malaysian operations, with 60 per cent of its patients being medical tourists. To expand in a more cost-efficient manner, it is looking at brownfield expansion – or adding beds – for markets with bigger land space, such as Malaysia and India. The group has a five-year plan to add 4,000 beds, or 33 per cent of capacity, by 2028. By 2024, it had already added 1,004 beds across its markets. Meanwhile, in Singapore and Hong Kong, it is moving towards the ambulatory care sector, or what it terms as the 'out-of-hospital' strategy. This is because it is not possible to open more private hospitals in these two markets, due to regulations, high costs and lack of space, Dr Nair said. Nevertheless, he noted several similarities in healthcare that can be dealt with at the group level. 'The truth is, a lot of healthcare is the same – (such as) licensing of doctors, accreditation of specialists, nurse licensing, building controls,' he said. 'What we try to standardise are things that may have some variation – quality is one area where we feel that we need to have some standardisation because we want the same outcomes.' By ensuring that patients are able to achieve the same results wherever they choose to engage with the group, Dr Nair said, this will push the group from being just a leader in business to a leader in healthcare services. Medical inflation, insurance premiums Dr Nair noted that as a group, it sees issues that may turn up in different markets from time to time. In 2024, Malaysia went through a bout of medical inflation that likely caused the group 'some softening' in patient admissions and revenue. In June 2025, insurer Great Eastern temporarily suspended pre-authorisation certificates for IHH Healthcare's Mount Elizabeth Hospitals, citing higher costs compared to other private hospitals. Dr Nair noted that payer-provider issues are not new to the healthcare industry, nor to the group. He added that the company is likely 'the most risk diversified healthcare group in the world', operating in 10 countries from the far east to the west. 'We are a heavily regulated industry, and we will continue to be – and it's good because we are dealing with people's lives,' he said. But costs are a perennial issue for an industry that should not compromise quality for price. Hence, to manage costs, Dr Nair said, IHH Healthcare tries to procure equipment at the group level. Technology, digitalisation and innovation also remain key priorities as the ageing population will likely increase healthcare utilisation and push up healthcare costs. Looking ahead, Dr Nair noted that the group is already operating at an average capacity of more than 70 per cent – 'fairly high' for a private hospital – so it needs to continue expanding. He also noted opportunities in Indonesia and Vietnam – two new markets in South-east Asia where the hospital operator is already operating. 'Our preference would be for continued growth in (our existing) countries… but as a responsible global healthcare group, we will have to look at opportunities down the road.'
Yahoo
09-07-2025
- Business
- Yahoo
IHH Healthcare pursues expansion in Indonesia and Vietnam
Malaysian hospital operator IHH Healthcare has set its sights on expansion into Indonesia and Vietnam to boost its scale amid escalating care expenses in the region, as reported by Bloomberg. Indonesia's healthcare reforms and relaxed foreign ownership rules, along with Vietnam's burgeoning market present new opportunities for growth, stated IHH Healthcare CEO Prem Kumar Nair. Prem Kumar Nair said: 'We get a lot of patients from Vietnam into our Singapore operations.' IHH runs over 80 hospitals across ten countries, encompassing Singapore, India, and China. The hospital operator is on an acquisition spree, having recently added Island Hospital in Malaysia to its portfolio in 2024. Its subsidiaries, Acibadem in Turkey and Fortis Healthcare in India have also expanded by purchasing additional hospitals in the past two years. IHH has a market capitalisation of $14bn. The group is tackling the challenge of rising import costs by bulk procurement of medical equipment, consumables, and generic medications, highlighted the news agency. This strategy aims to reduce the financial burden of imported goods, according to Nair. In China, IHH is focusing on solidifying its presence. The company has transitioned its clinic business into a profitable venture and is witnessing an increase in patient numbers at its Shanghai hospital. Despite China easing foreign investment restrictions in the healthcare sector, IHH remains cautious about further expansion, given the strong competition from the public sector, as further outlined by Bloomberg. Nair said: 'In China, the public sector is a very big competitor to private healthcare. 'We are the only foreign operator in China who has a combination of clinics, and an ecosystem, so we will build on it.' The company's growth plans are not limited to new markets. It also intends to increase hospital bed capacity by 33% from 2024 through 2028 in existing markets, adding 4,000 beds. For the first quarter, IHH reported a revenue of MYR6.29bn ($1.48bn), a 5.7% rise from the previous year. However, its profit dropped 33% to MYR514m, due to exceptional accounting adjustments. While Turkey, Singapore, and Malaysia are the current primary revenue sources, the company anticipates India to become a significant contributor due to the growing demand for private healthcare. Nair emphasised the importance of developing out-of-hospital care, such as ambulatory surgical and care centres, to mitigate cost pressures. IHH operates 60 such non-hospital healthcare facilities. While Singapore has established a comprehensive ecosystem and Hong Kong is progressing towards one, Malaysia's regulations currently prevent hospital operators from managing other healthcare facilities. IHH plans to appeal to Malaysia's Health Ministry to change this rule, hoping to expand significantly into the out-of-hospital sector. "IHH Healthcare pursues expansion in Indonesia and Vietnam" was originally created and published by Hospital Management, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
