Aster DM Healthcare inks O&M agreement to operate hospital in Mandya
Healthcare

Aster DM Healthcare inks O&M agreement to operate hospital in Mandya

The term of O&M is for 15 years with a lock in period of 5 years for the Company and 15 years for VHPL & Bharathi Education trust.

  • By IPP Bureau | January 01, 2023

Aster DM Healthcare has entered into a Hospital Operation and Management Agreement (O&M) with Vritika Hospitals & Bharathi Education Trust, for operating and managing G. Madegowda Super Specialty Hospital (GMSSH) Mandya, Karnataka on December 29, 2022. GMSSH is a 100-bed tertiary super specialty hospital situated in Mandya town, 95 kms away from Bangalore.

The term of O&M is for 15 years with a lock in period of 5 years for the Company and 15 years for VHPL & Bharathi Education trust.

GMSSH has 100 beds capacity and with this total installed capacity of the Company shall be increased to 4,380 beds. The proposed capacity will be added within 3 months from the date of signing the O&M agreement.

The Hospital Building and Infrastructure is being developed by VHPL & Bharathi Education trust. The Company shall pay an interest free refundable security deposit of INR 5 crores.

The Hospital may require further capex infusion to the tune of INR 1.5 crores during the initial 2 years of operations and the same shall be infused through internal accruals of the Company.

This is a part of O&M asset light model to add 500-700 beds in India, which will have better returns with minimal capex investment.

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