Published Date : Sep 11, 2015
For almost two years, Parkway Pantai has been delaying the opening of its 450-bedded hospital in India. The Singapore based medical company’s pursuit to leverage opportunities in one of the fastest growing healthcare markets has been waiting for necessary pursuits.
Parkway, which is a unit of the second largest healthcare group in the world plans to use acquisitions in pursuit for fast expansion in India. The private hospital market in India is estimated to be valued at US$55 bn each year, but companies need to obtain almost 70 clearances from local and federal authorities for the launch of a new facility.
The head of Parkway’s operations head in the Middle East and South Asia commented that Greenfields is not on the agenda of the healthcare group. He further commented on a telephonic interview that Greenfield is a company that would need eternal wait to tap into, as a result the company has decided to tap it inorganically. It is only a matter of shorter runway.
In Mumbai, garbage festers in the proximity of Parkway have already built Gleneagles Khubchandani hospital. The hospital was expected for an opening in 2012. The head of operations of Parkway commented that the India hospital is scheduled to open in 2016.
The healthcare group currently expanding through acquisitions is becoming the first choice of hospital operators in pursuit to expand speedily in India. The demand for private healthcare is mushrooming in India thanks to the overburdened public healthcare system.
As per data from the Global Research h firm states that BofA-ML, private hospital market is expected to grow at 16% each year to be valued at US$120 bn by 2020, which will be double the size of the healthcare market in China.
The expansion strategy, although will not address the severe shortage of beds or bring down healthcare costs in any way.