Healthcare services provider Apollo Hospitals Enterprise Ltd plans to invest $150-175 million to set up five specialty hospitals for children, four in India and one likely in Nigeria, by 2011.
“If the government has health as a priority and if they had given the stimulus for health, we would have probably created tremendous employment potential… Still, we have plans to open at least five more pediatric hospitals,” Apollo Hospitals’ chairman Prathap Reddy said.
Health plan: Apollo Hospitals chairman Prathap Reddy.
Reddy spoke on the sidelines of an event in Chennai to inaugurate the hospital chain’s first standalone paediatric hospital.
Four of the 100-bed hospitals, costing $30-35 million each on average, will be in India, and another children’s hospital may be set up in Nigeria over the next 18-24 months, Reddy said.
“Specialized care is in high demand in Africa,” said Prateek Jain, healthcare industry analyst with consulting firm Frost and Sullivan.
Apollo’s children’s hospital in Chennai cost the medical services provider a slightly lower $20-25 million because of some resource sharing with other Apollo hospitals in the city. “We have combined the technology with the main hospital and so that has saved us $10 million,” Reddy said.
Last month, International Finance Corp., a World Bank entity, granted a $50 million loan to Apollo Hospitals for expanding its network of Reach Hospitals. The chain is designed specifically for under-developed population centres.
Apollo Hospitals has reported a 20% jump in earnings before extraordinary items on a 22% increase in revenue for the fiscal ended 31 March.