Fortis Healthcare to Invest $156 Mn in Hospital Expansion

This strategic move by the healthcare giant aims to boost capacities at its existing hospitals over the next few years. It plans to add approximately 2,200 beds to meet growing demand in India.

Indian private hospital network Fortis Healthcare has planned to invest $156 million in an expansion drive of its hospitals.

This strategic move by the healthcare giant aims to boost capacities at its existing hospitals over the next few years. It plans to add approximately 2,200 beds to meet growing demand in India.

Talking about the move, Vivek Goyal, chief financial officer, Fortis Healthcare, said, “Some of the CAPEX (capital expenditures) has already been incurred in that. So, additional CAPEX will be somewhere around Rs12bn to Rs13bn, which includes equipment also, everything put together.”

The Expansion Roadmap

The expansion includes increasing bed capacity at its Faridabad facilities and Anandpur Sahib. At Shalimar Bagh, Fortis plans to construct a new tower on the adjacent plot to add over 200 beds.

Further, the Manesar facility is expected to begin operations with 100 beds by the second quarter of this financial year.

“In Faridabad, there is space available, and we have planned to further expand and add certain more facilities there. As regards to Anandpur, we have acquired a company with a different land parcel. So, we want to operationalize that also. So, post-expansion of these 100 beds, we will be adding maybe another 50 beds in the next financial year in that unit,” Goyal added.

Fortis is also adding 100 beds to a two-floor facility in Kolkata, which has obtained all necessary approvals.

For the BG Road facility in Bengaluru, the healthcare provider is awaiting an occupancy certificate (OC) by the end of the second quarter of this fiscal.

Future Plans

Fortis Healthcare has ambitious expansion plans, aiming to increase its bed capacity from 4,500 to 10,000 beds across India over the next five to seven years.

This growth strategy will involve both brownfield expansions of existing hospitals and acquisitions of new facilities.

Vinayak highlighted Fortis' target for an EBITDA growth of around 20%. While refraining from making forward-looking statements, he expressed confidence in maintaining performance levels.

Fortis’ Latest Developments

Recently, Fortis Hospital Noida introduced the state's inaugural AI-powered cath lab aimed at enhancing precision in interventional procedures.

The advanced cath lab incorporates the AI version of GE Innova IGS 5, seamlessly integrating cutting-edge technologies to facilitate precision-based interventions for complex cases.

The lab boasts high-resolution, 3D AI-based technology capable of supporting intricate procedures such as angioplasties, structural heart interventions such as TAVR and Mitra clip, as well as critical neuro interventions for stroke and emergency vascular procedures.

Last year, Fortis Cancer Institute introduced an advanced Digital PET CT machine, marking a notable stride in cancer diagnostics and precision oncology in India.

The technology, Digital Biograph Vision 450, is a state-of-the-art Digital PET CT scanner equipped with flow motion technology and multi-parametric imaging.