Halcyon Finance and Capital Advisors Private Limited, a turnaround specialist, have acquired hospital management services firm Integrated Health and Healthcare Services India Private Limited (IHHS).
Stated Abhay Soi, Co-founder and Managing Director, Halcyon,“In line with Halcyon’s business model, IHHS is in the business of unlocking value in latent assets within the healthcare delivery space through application of financial and managerial resources.”
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This article was listed in the January 24, 2011 issue of the PHM Emerging Markets Healthcare News Feed.
Look to more deals like this and the further development of the hospital operator model.
The hold up in India and elsewhere: family dynasties and cultural attachment to land, or rather real estate.
Smart examples of the hospital operator without real estate include KPJ Healthcare of Malaysia and American Hospital Management Co. (AHMC).
Malaysia’s active bourse has to some degree allowed Malaysian companies to mature rapidly. KPJ Healthcare is well on its way to divesting its real estate to a sharia compliant REIT*. For non-owner operators like AHMC, their model allows for rapid growth.
The hospital sector is a labor and capital intensive business. Real estate is extremely capital intensive. Split the two, the hospitals management from its real estate, for maximum growth and return………HK