Hyderabad-based SuVitas to create 500-bed capacity

Hospital readmission is an important contributor to total medical expenditure and an emerging indicator of quality of care. Hyderabad-based SuVitas Holistic Healthcare is aiming big in the transition care category, by foraying into Chennai and Mumbai in the near future followed by key tier II cities across India. It plans to have about 10 facilities in 5 years with 500-bed capacity, with a cumulative investment of about Rs. 75 crore. The company has been meeting its growth needs so far through funding from family and friends, and once it establishes its fourth center in Mumbai by the end of calendar year 2019, it will look for PE funding.

The company has been investing about Rs. 7–7.5 crore in each facility. The aim is to create 500 beds in the next 5 years with each facility to have around 50-bed capacity, with ten centers. It plans to set up at least 2-3 centers each year after 2019 in the proposed cities. The company has achieved break-even in April this year and has earnings before interest, tax, depreciation and amortization (EBITDA) of 20 percent.