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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
On the surface, Narayana Health’s latest acquisition holds promise. But a closer look suggests that the UK’s Practice Plus Group will need a bit of a turnaround before it can start yielding results.
Why would any Indian healthcare company acquire a hospital in the United Kingdom? The markets are poles apart, and words like synergy, efficiency and opportunity—the corporate lingo that underlines most mergers and acquisitions—begin to sound hollow when applied to this case. Except if you ask Narayana Health. The Devi-Shetty led hospital chain, which has just acquired the UK-based Practice Plus Group for 189 million pounds (Rs 2,200 crore), will spout these exact same words. “What gave us confidence in the UK was seeing other non-UK players invest in private healthcare there and execute successfully,” says Sandhya J., chief financial officer …
A public listing will help clean up the hospital chain’s balance sheet after the costly Sahyadri acquisition. But depressed metrics, integration risks and lofty valuations make this far from a clean turnaround story.
Healthcare is one of the fastest growing sectors. For young professionals, the sector offers a spectrum of opportunities beyond medicine, spanning hospital operations, data analytics, corporate strategy, and digital health.
The managed care venture has made a strong start in Bengaluru. Will its disruptive model strike a chord nationwide?
