Thursday, September 14, 2006
Project Development
Mergers and Acquisitions
In an earlier posting, I had written about mergers and acquisitions being an attractive option today for rapid scaling up of healthcare delivery organizations. When I wrote that I was really thinking of the large players like Apollo, Wockhardt, Manipal, and Fortis. But it seems like there is a lot more action happening in this space.
Sometime last week, there was a story in the Economic Times about the Meenakshi Medical Mission, Madurai, acquiring a stake in a hospital in Tirunelveli. And a couple of days ago, another story about a Hospital in Kanchipuram acquiring Devaki Hospital, Madras. Am sure there are many more instances that may not have made it into mainstream media.
This is good stuff, and I think that activity levels will go up even further. The more one thinks about this, the more it seems like this is a good way for consolidation to happen in this industry. The current level of fragmentation is quite inefficient, and most of the smaller providers will be better of as part of a larger entity, which can then implement best practices, and ensure better quality of care to the patients.
In an earlier posting, I had written about mergers and acquisitions being an attractive option today for rapid scaling up of healthcare delivery organizations. When I wrote that I was really thinking of the large players like Apollo, Wockhardt, Manipal, and Fortis. But it seems like there is a lot more action happening in this space.
Sometime last week, there was a story in the Economic Times about the Meenakshi Medical Mission, Madurai, acquiring a stake in a hospital in Tirunelveli. And a couple of days ago, another story about a Hospital in Kanchipuram acquiring Devaki Hospital, Madras. Am sure there are many more instances that may not have made it into mainstream media.
This is good stuff, and I think that activity levels will go up even further. The more one thinks about this, the more it seems like this is a good way for consolidation to happen in this industry. The current level of fragmentation is quite inefficient, and most of the smaller providers will be better of as part of a larger entity, which can then implement best practices, and ensure better quality of care to the patients.
# posted by Srivathsan @ 10:25 AM 
