Shares of Fortis Healthcare Ltd. saw a significant rise of over 3% in early trading on Thursday. This surge followed the announcement of a new strategic partnership through its wholly-owned subsidiary, Fortis Hospotel Ltd.
Fortis Hospotel's Strategic Partnership in Delhi
Fortis Hospotel Ltd. has entered into definitive agreements with the Seth Sunder Lal Jain Charitable Eye Hospital (SLJ Society) to facilitate healthcare services for a new 400-plus bed super-specialty hospital. Located in Ashok Vihar, New Delhi, this facility marks a significant expansion for Fortis in the capital.
Under the terms of the Healthcare Services Agreement, Fortis Hospotel will hold long-term exclusive rights, spanning 29 years with an option for extension, to deliver specified inpatient healthcare services. This includes providing specialized medical equipment such as Cath Labs, LINAC, PET-CT machines, and surgical robots, along with the necessary clinical manpower to operate them.
The SLJ Society will retain ownership, operation, and management of the hospital, including the land, building, and associated civil and certain medical infrastructure. Fortis's role will primarily focus on service provision and financial support.
Financial Aspects of the Deal
As part of the comprehensive agreement, Fortis Hospotel has committed to providing a loan of up to Rs 567 crore to the SLJ Society. This loan will be disbursed in multiple tranches over the next three to four years, aligning with the construction progress and upgradation of the hospital.
In return for its services and financial commitment, Fortis Hospotel will receive a service fee, which is linked to a certain percentage of the hospital's overall revenue. Additionally, the subsidiary will earn interest on the loan extended to the SLJ Society.
The new hospital, to be developed on approximately 3.1 acres in North-West Delhi, is anticipated to become operational in phases. It is designed to offer a wide array of medical specialties, including oncology, neurosciences, cardiac sciences, gastroenterology, orthopaedics, renal sciences, robotic surgeries, and various transplant procedures.