Strengthening its footprint in the competitive Karnataka healthcare market, Fortis Healthcare Limited announced on Saturday, December 20, 2024, that it has entered into a definitive agreement to fully acquire People Tree Hospital in Yeshwanthpur, Bengaluru. The deal is valued at ₹430 crore and marks a significant expansion for the hospital giant in the city’s North-West corridor.
Strategic Expansion and Bed Capacity
The acquisition, executed through Fortis’ wholly-owned subsidiary International Hospital Limited (IHL), involves the 100% purchase of TMI Healthcare Private Limited, the operator of the Yeshwanthpur facility.
- Current Capacity: The hospital currently operates with 125 beds.
- Expansion Plans: Along with the hospital, Fortis has acquired an adjacent 0.8-acre land parcel.
- Future Goal: Fortis plans to invest an additional ₹410 crore over the next three years to scale the facility to over 300 beds.
This move brings Fortis’ total potential capacity in Bengaluru to over 1,500 beds across seven facilities, up from its current 900 beds.
Enhancing Clinical Excellence
People Tree Hospital is a NABH-accredited multi-specialty facility known for its Centers of Excellence in Orthopaedics, Cardiac Sciences, and Neurosciences. Following the acquisition, Fortis intends to introduce advanced clinical programs, including Radiation Oncology, and upgrade the existing medical infrastructure to meet its global standards.
"The acquisition is a strategically important addition and will further strengthen our position in the Bengaluru market," said Dr. Ashutosh Raghuvanshi, MD & CEO of Fortis Healthcare. "It enables us to leverage the benefits of scale and synergies in one of our most important focused clusters."
Founders' Perspective
The hospital was co-founded in 2013 by Dr. Jothi Neeraja (MD & CEO) and Dr. Upendra Kandluri. Speaking on the transition, Dr. Jothi Neeraja noted that the partnership with Fortis ensures the "continuity, modernization, and long-term benefits" for patients while upholding the hospital's founding values of ethical and patient-centric care.
The transaction is expected to be consummated by the end of January 2025, subject to customary closing conditions.
