Max Healthcare Explained

Max Healthcare Institute Limited
Type:Public
Industry:Healthcare
Key People:Abhay Soi (Chairman & MD)[1]
Hq Location:New Delhi, India
Num Locations:19
Area Served:India
Revenue: (FY24)
Operating Income: (FY24)
Net Income: (FY24)[2]
Num Employees:15,000 (2023)[3]

Max Healthcare Institute Limited is an Indian for-profit private hospital chain headquartered in Delhi.[4] [5] Max Healthcare operates 19 hospitals with more than 4,000 beds, primarily in North India.[2] [6]

Max Healthcare also operates the Max Lab pathology and Max@Home home medical services divisions.[7]

History

Max Healthcare opened its first medical center in South Delhi's Panchsheel Park in 2000. The company opened two other secondary care centers in Pitampura in North West Delhi and Noida in 2002.[8] In 2004, the company commissioned the East Block of its flagship tertiary care hospital called Max Hospital, Saket in South Delhi.

In 2007, Max Healthcare ventured into Gurgaon with a secondary care hospital.[9]

In 2011, Max Healthcare entered into a public–private partnership (PPP) agreement with the Government of Punjab to set up two hospitals in Mohali and Bathinda. In the same year, Max Healthcare commissioned its tertiary care hospital in Shalimar Bagh, North West Delhi.[10]

In 2012, Life Healthcare Group acquired a 26% stake in Max Healthcare for . In 2014, Life Healthcare invested another to increase its stake to 46.41% and to become an equal joint venture partner with Max India.[11]

In 2015, Max Healthcare acquired the Pushpanjali Crosslay Hospital in Vaishali, Ghaziabad,[12] and the Saket City Hospital in Saket. These hospitals were subsequently renamed as Max Hospital Vaishali, and Max Smart Hospital, Saket.[13] [14] A standalone oncology center called Max Cancer Centre was commissioned in Lajpat Nagar, South Delhi, in 2016.[15]

In 2018, Life Healthcare announced that it would sell its entire 49.7% stake in Max Healthcare and exit its joint venture with Max India.[16] In 2019, Radiant Lifecare acquired 49.7% stake in Max Health Institute Limited for [17] [18] and Abhay Soi was made chairman.[19] In 2020, Max Healthcare merged with Radiant Lifecare, which operated BLK Hospital in Central Delhi and the Nanavati Hospital in Mumbai, to become the second-largest healthcare company in India by revenue.[20] [21]

The company listed on the stock exchanges in August 2020.[22] [23] Between 2021 and 2022, co-promoter KKR & Co. Inc. sold its entire stake in Max Healthcare. As a result, Abhay Soi became the sole promoter of the company with over 23% stake.[24] [25]

The company raised 1,200 crore equity through Qualified Institutional Plan [26] and acquired exclusive rights to aid the development of a 500-bed hospital in south Delhi.[27] It secured two land parcels in Gurgaon with the potential to add 1,000 beds.[28] The company also executed an O&M agreement for the first asset-light model in Dwarka for 300+ beds.[29] It acquired a stake in Eqova Healthcare having the potential to add 400+ beds in East Delhi.[30]

In December 2023, Max Healthcare acquired Sahara Hospital in Lucknow for .[31] In February 2024, it acquired Alexis Multi-Specialty Hospital in Nagpur for .[32]

Education and research

Max Institute of Medical Excellence (MIME) has held various training programs across multiple disciplines.[33] [34] Courses offered include a full-time postgraduate Internal Medicine Training (IMT) program in association with the Joint Royal College of Physicians Training Board (JRCPTB), UK.[35] The institute offers a program affiliated with the Lincoln American University, Guyana to train MBBS students. The clinical rotation of 88 weeks is divided among surgery, obstetrics and gynecology, pediatrics, and family medicine, and various electives like gastroenterology, urology, nephrology, psychiatry, dermatology, orthopedics, rheumatology, neurology and neurosurgery, cardiology, and cardio-thoracic surgery, etc.[36]

Subsidiaries

Controversies

In September 2013, a patient who had received a pacemaker implantation at Max Super Speciality Hospital, Mohali, died after the doctor allegedly implanted a "wrong and cheap pacemaker". In 2014, the Chief Judicial Magistrate Court (CJM) of Mohali summoned the hospital's CEO and doctor to stand trial against charges of medical negligence, conspiracy and cheating.[38] In 2017, the State Consumer Disputes Redressal Commission ordered the hospital to pay a compensation of to the wife of the deceased patient.[39] The CJM's summoning order was upheld by the Punjab and Haryana High Court in 2024.[40]

In 2015, the Competition Commission of India (CCI) ordered a probe into Max Super Speciality Hospital, Patparganj, which was allegedly selling disposable syringes to patients at inflated prices. In 2017, the CCI investigation concluded that the hospital was making 275% to 525% profits by forcing patients to buy the products at maximum retail price from its own pharmacy in "a clear instance of abuse of the dominant position". It noted that overcharging was prevalent across all 14 hospitals of Max Group.[41]

In 2016, the Government of Delhi ordered five hospitals in the city, including Max Super Speciality Hospital, Saket, to pay a total fine of for denying free-of-cost treatment to the poor. The government stated that the five hospitals were granted land at concessional rates on the condition that they provide free medical treatment to poor people totalling to 10% of all in-patients and 25% of all outpatients, but they had failed to comply with the condition.[42] [43]

In December 2017, the Government of Delhi suspended the license of Max Super Speciality Hospital, Shalimar Bagh, which had wrongly declared a preterm baby dead that was later found to be alive. Delhi Health Minister Satyendar Jain labelled the hospital as a "habitual offender" and said that three notices had been served to the hospital earlier over medical lapses.[44] [45] The hospital resumed operations later that month after the license suspension was stayed.[46]

During the outbreak of COVID-19 in 2020, Max Super Speciality Hospital, Patparganj, received criticism for its high treatment costs. The hospital issued a statement that charges of over per day was applicable only for "very critical COVID-19 patients".[47] [48]

Notes and References

  1. News: Leo . Leroy . Max Healthcare completes merger of Radiant Life's hospital assets with self . 8 December 2020 . mint . 1 June 2020 . en.
  2. Web site: Presentation On Earnings Update . Max Healthcare Institute Limited . 29 May 2024.
  3. Web site: Annual Report 2022-23 . Max Healthcare Institute Limited . 29 March 2024.
  4. Web site: MAX HOSPITALS. 2020-08-21. www.ibef.org.
  5. News: Das . Sohini . Max Healthcare says will become second largest healthcare chain by revenue . 8 December 2020 . Business Standard India . 1 June 2020.
  6. Web site: Max Healthcare Institute Directors Report Max Healthcare Institute Director Details . 2023-07-10 . The Economic Times . en.
  7. News: Anand . Kshitij . 2022-11-17 . Fundamental Radar: Why Max Healthcare could touch fresh record highs and scale Rs 500 levels in next 1 year . The Economic Times . 2023-07-09 . 0013-0389.
  8. News: Max Healthcare Centre. indiatimes.com. 2011-11-09.
  9. Web site: Warburg Pincus enhances stake in Max Healthcare Max India . 8 December 2020.
  10. News: Roy . Vijay C. . Max sole bidder for Punjab super-speciality hospitals . 8 December 2020 . Business Standard India . 12 February 2009.
  11. News: Life Healthcare completes Rs 766 crore investment in Max Healthcare . 11 January 2023 . The Economic Times.
  12. News: Reporter . B. S. . Max acquires Pushpanjali Hospital for Rs 290 cr . 8 December 2020 . Business Standard India . 29 May 2015.
  13. News: Punj . Shreya . Max Healthcare acquires NCR's Pushpanjali Crosslay Hospital . 8 December 2020 . mint . 29 May 2015 . en.
  14. News: Max Healthcare acquires 76% stake in Pushpanjali Crosslay for Rs 287 crore . 8 December 2020 . The Economic Times.
  15. News: Delhi gets first standalone cancer daycare centre . 8 December 2020 . Hindustan Times . 7 June 2016 . en.
  16. Web site: Life Healthcare To Sell Its Stake In Max Healthcare. 2020-08-21. BloombergQuint. 20 September 2018 . en.
  17. News: Radiant Life Care completes acquisition of 49.7% stake in Max Healthcare . 8 December 2020 . www.businesstoday.in.
  18. News: Bureau . Our . Max Healthcare announces change in leadership, reconstitutes board . @businessline . en.
  19. Web site: 2019-08-13. Max Healthcare Institute reconstitutes its board, ropes in ex-SEBI chief UK Sinha as independent director . 2020-08-21. Firstpost.
  20. News: Bureau . ET . Max completes healthcare merger with Radiant Life . 19 February 2021 . The Economic Times . 2 June 2020 . en.
  21. News: Leo . Leroy . Max Healthcare completes merger of Radiant Life's hospital assets with self . 8 December 2020 . mint . 1 June 2020 . en.
  22. Web site: Turnaround Specialist Abhay Soi And KKR-promoted Max Healthcare Poised For D-Street Debut. 2021-03-11. Moneycontrol. 18 August 2020 .
  23. News: 22 August 2020 . Max Healthcare Institute lists on bourses, eyes robust growth . 8 December 2020 . Zee Business.
  24. News: Dhanjal . Swaraj Singh . Laskar . Anirudh . KKR sells Max stake in PE's largest exit . 24 December 2022 . mint . 16 August 2022 . en.
  25. Web site: Laskar . Anirudh . 2022-07-14 . KKR might sell entire stake in Max Healthcare for ₹12,000cr . 2023-07-09 . mint . en.
  26. News: 2021-03-10 . Max Healthcare raises Rs 1,200 cr via QIP issue route . The Economic Times . 2023-07-10 . 0013-0389.
  27. Web site: 2021-08-29 . Delhi: Another Max Hospital to come up in Saket . 2023-07-10 . The Indian Express . en.
  28. Web site: www.ETHealthworld.com . Max Healthcare plans Rs 1,600 cr investment to add around 1,000 beds in Gurugram - ET HealthWorld . 2023-07-10 . ETHealthworld.com . en.
  29. News: Pilla . Viswanath . 2022-01-20 . Max Healthcare to manage 300 bed Muthoot Hospitals in Delhi suburb . The Economic Times . 2023-07-10 . 0013-0389.
  30. Web site: 2022-02-11 . Max Healthcare Institute to acquire Eqova Healthcare . 2023-07-10 . www.thehindubusinessline.com . en.
  31. Web site: 2023-12-08 . Max Healthcare expands footprint with ₹940-crore acquisition of Lucknow's Starlit Medical Centre . 2023-12-08 . CNBCTV18 . en.
  32. News: Max Healthcare strengthens western presence by acquiring Alexis multi-specialty hospital . 9 February 2024 . BusinessLine . 9 February 2024 . en.
  33. Web site: August 16, 2021 . Dr Dibya Singha Das lauded one top joint replacement surgeons country . International Business Times.
  34. Web site: Max institute to conduct emergency medicine exam . 2023-07-10 . Amar Ujala . hi.
  35. Web site: Bureau . EH News . 2020-01-17 . Max Healthcare joins hands with The Royal College of Physicians to organise General Medicine Symposium . 2023-07-10 . Express Healthcare . en-US.
  36. Web site: August 6, 2021 . Lincoln American University collaborates with Singhania University to help Indian medical aspirants . The Print.
  37. News: Max Healthcare - A three-act play: growth, quality, returns . 11 January 2023 . HDFC securities.
  38. News: Max Hospital CEO, doc summoned . 28 March 2024 . Tribune India.
  39. News: Commission directs Max Hospital to pay Rs 32.94 lakh . 28 March 2024 . Tribune India.
  40. News: Death by medical negligence: HC refuses to quash summoning order against Mohali hospital, doc . 28 March 2024 . Hindustan Times . 14 March 2024 . en.
  41. News: Max makes profit of up to 525% on syringes: CCI . 28 March 2024 . The Times of India . 7 December 2017.
  42. News: Five city hospitals 'fined' Rs 600 crore for spurning the poor . 6 April 2024 . The Times of India . 12 June 2016.
  43. News: Delhi government yet to recover Rs 600 cr fine from 5 private hospitals . 6 April 2024 . DNA India . 10 July 2018 . https://web.archive.org/web/20180710090232/https://www.dnaindia.com/mumbai/report-delhi-government-yet-to-recover-rs-600-cr-fine-from-5-private-hospitals-2635335 . 10 July 2018 . en.
  44. News: Sharma . Neetu Chandra . Max Hospital Shalimar Bagh loses licence over negligence . 28 March 2024 . Mint . 8 December 2017 . en.
  45. News: Foetus below 24 weeks not viable, say doctors . 29 March 2024 . theweek.in.
  46. News: Delhi: Max Hospital in Shalimar Bagh resumes operations, suspension of licence stayed . 28 March 2024 . The Indian Express . 20 December 2017 . en.
  47. News: Porecha . Maitri . Loss of face for Max Hospital over steep Covid-19 charges . 29 March 2024 . Business Line . 14 June 2020 . en.
  48. Web site: Max Healthcare COVID-19 pricing controversy - All you need to know. 2021-03-17. Free Press Journal. en.

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