Ahmedabad. The private sector in Gujarat is undergoing a consolidation wave, with mergers and acquisitions as well as operational tie-ups increasing across cities such Ahmedabad Vadodara, and Surat. Recent deals show a clear shift in strategy among the large hospital chains. They are expanding their cacity and strengthening their regional presence more through acquisitions than by launching new projects. Marengo Asia Hospitals acquired a majority stake in Sunshine Global Hospitals which runs two NABH accredited facilities in Surat, Vadodara, with a total cacity of 400 beds. This expansion in western India is being done by Marengo Asia Hospitals. Marengo’s cacity in Gujarat now exceeds 1,150 beds. This places it in the top five hospital networks of the state. “As our expansion in western India continues, we are becoming one of Gujarat’s largest players,” stated Dr Raajiv Singal, founder member, group managing Director and CEO of Marengo Asia Hospitals. Sources from the industry added that consolidations were driven both by the expansion ambitions and operational pressures of smaller, doctor run hospitals. While the larger players strive for scale, multi-city networks and digital infrastructure, smaller hospitals are faced with increasing administrative costs and regulatory compliance.

Today, running a hospital is more than just providing clinical care. A small business owner said that the cost of accreditation standards, administrative systems, and insurance processes are often too high for smaller businesses to afford. Maxivision’s chairman and managing directors, Dr GSK Velu said that Gujarat is a key growth market. After building a solid base in cities such as Rajkot, Morbi and Jamnagar, we are now evaluating opportunities in major centres. Bhailal Amin General Hospital has acquired two hospitals in Vadodara. One is in the old town and another in Gotri. Both are expected to be operational in the near future. Parul Sevashram (PSH) in Vadodara has acquired hospital operations located in Channi and Padra. “We’re also in discussions with other hospitals”, said Dr Geetika Patel, director of PSH, and vice-president at Parul University.

According to industry experts, corporate hospital chains can benefit from improved financial management and standardised clinical protocols, as well as stronger procurement systems. This will improve efficiency and profitability. Due to their limited administrative abilities, standalone hospitals face difficulties in scaling up. Analysts attribute this trend to Gujarat’s industrial base, increasing urbanisation and the growing demand for advanced healthcare.

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