Narayana Hrudayalaya shuts down hospital in Bengaluru1 min read . Updated: 09 Nov 2019, 11:57 AM IST
- The unit in Whitefield, Bengaluru, was not able to scale up, said Narayana Hrudayalaya
- The company started the Whitefield hospital in 2013
Narayana Hrudayalaya has shut down a hospital at Whitefield in Bengaluru as the unit was not able to scale up, the company said in an exchange filing. “The unit was positioned for upmarket segment with day-care and short-stay specialties, except cardiac care and oncology. However, the unit was not able to scale due to various reasons including the failure of the lessor to provide additional infrastructure that is compliant with all regulatory norms," Narayana Hrudayalaya said in an exchange filing late Friday.
The company started the Whitefield hospital in 2013 with a built-up area of approximately 1.1 lakh square feet with 91 operational beds. The company planned to expand the capacity in phases so as to make it a sustainable and viable unit.
Narayana Hrudayalaya operates 21 of its own hospitals as well as manages two more hospitals, according to an investor presentation of the company. The healthcare chain also has seven heart centres, 19 primary health facilities as well as one hospital in the Cayman Islands.
The company had also reported its earnings for the July-September quarter on Friday, with its consolidated net profit soaring over three-fold on-year to ₹45.3 crore from ₹13.6 crore.
Narayana Hrudayalaya’s consolidated revenue rose 15.6% on-year to ₹822.3 crore, while its operating income rose 68.3% to ₹128 crores, with a margin of 15.6%.
The Devi Shetty-led company’s earnings were aided by strong sales and changes in the accounting standards for leases and rentals.