The IHH Healthcare Acquisition of Fortis Healthcare and Its Impact on the Indian Healthcare Industry
The healthcare industry in India has been gaining attention from global investors due to its increasing demand for quality healthcare services, rising income levels, and favorable government policies. In one of the most significant developments in the industry in recent years, IHH Healthcare Berhad, a leading international healthcare provider, announced its acquisition of Fortis Healthcare Limited in November 2018. The acquisition of Fortis Healthcare by IHH Healthcare is a game-changer for the Indian healthcare industry in several ways.
Background
Fortis Healthcare, a leading healthcare provider in India, was on the verge of bankruptcy due to several financial irregularities and management issues. The company had a huge debt burden and was in dire need of a strategic partner to help it revive and grow in the market. After months of negotiations and bidding wars, IHH Healthcare Berhad, a Malaysian-Singaporean multinational healthcare provider, emerged as the winner and eventually acquired a 31% stake in Fortis Healthcare Limited.
IHH Healthcare’s Expertise and Resources
One of the most significant advantages of the IHH Healthcare acquisition is that it brings with it the expertise and resources of a leading global healthcare provider to the Indian market. IHH Healthcare has a proven track record of managing and operating hospitals in multiple countries, including Malaysia, Singapore, Turkey, and China. It has a team of experienced professionals and access to advanced technologies and best-practices that can be leveraged to improve the quality of healthcare services offered by Fortis Healthcare in India.
Expansion and Growth Opportunities
The IHH Healthcare acquisition also opens up new expansion and growth opportunities for Fortis Healthcare. The Indian healthcare market is one of the fastest-growing markets in the world, with a projected annual growth rate of 22% by 2020. With IHH Healthcare’s financial resources and expertise, Fortis Healthcare can expand its operations into new regions, upgrade its existing facilities and equipment, and attract and retain top talent. This will help Fortis Healthcare to gain a competitive edge in the market and become a leading healthcare provider in India.
Improved Corporate Governance and Transparency
Another critical benefit of the IHH Healthcare acquisition is that it will introduce more transparency and accountability in the management of Fortis Healthcare. The company had been plagued by several management issues and financial irregularities in the past. The acquisition by IHH Healthcare will bring in new management practices, systems, and procedures that will improve corporate governance and financial reporting. This will help restore the confidence of stakeholders and investors in Fortis Healthcare and create a more transparent and accountable healthcare system in India.
Conclusion
The IHH Healthcare acquisition of Fortis Healthcare is a game-changer for the Indian healthcare industry. It brings in new expertise, resources, expansion opportunities, and transparency that will help improve the quality of healthcare services, attract more investments, and create a more competitive and sustainable healthcare system in India. The deal is expected to set new benchmarks for mergers and acquisitions in the industry and pave the way for more global partnerships and collaborations in the future.
