SevenHills Hospital explained

SevenHills Hospitals
Org/Group:SevenHills Healthcare, Ltd.
Location:Mumbai, Maharashtra and Visakhapatnam, Andhra Pradesh
Country:India
Healthcare:Rajiv Gandhi Jeevandayee Arogya Yojana
Type:General
Patron:Jitendra Das Maganti, founder and managing director
Emergency:Yes
Beds:1,500 (Mumbai)
Founded:1986 (Vishakapatnam), 2010 (Mumbai)

SevenHills Hospital are three private hospitals, operating under central management, in Mumbai, Maharashtra and Visakhapatnam, Andhra Pradesh, India. The Vishakapatnam branch opened in 1986 and the Mumbai branch in 2010. The Mumbai hospital was the result of a Rs 10 billion public-private partnership between Seven Hills and Brihanmumbai Municipal Corporation (BMC). At and of built-up space, the Mumbai hospital was designed to be the country's largest hospital in a single location. A dedicated COVID-19 hospital was added in 2020.

History and facilities

In 2002, talks began between SevenHills and Brihanmumbai Municipal Corporation (BMC) to open a multi-specialty branch of the hospital in Mumbai. According to the resulting public-private partnership agreement, signed in 2005, BMC gave SevenHills a 60-year lease on a 17acres plot in the Mumbai suburb of Andheri, near the Mumbai International Airport. In exchange, Seven Hills agreed to reserve 20% (300) of its 1,500 beds for low-income patients who come through the BMC healthcare system, charging them at the same rate as offered by public hospitals.

The funding for the project came from private capital and bank loans, and the majority stakeholder is Jitendra Das Maganti, M.D., the founder and managing director of the hospitals.[1] The Mumbai hospital was inaugurated in July 2010 by the president of India, Pratibha Patil,[2] which caused controversy as the hospital space for low-income patients was not ready.[3]

The Mumbai complex has a bghuilt-up area with plans for 1500 beds (300 for critical care), intensive care units for cardiology, burns, neonates, and paediatrics, and 36 operating rooms.[4] The hospitals have services in over 30 specialties including Neurology and Neurosurgery, Cardiology, Oncology, Orthopedic Surgery, General Surgery and Laparoscopic Surgery, Emergency Services, Pediatrics, Otorhinolaryngology, Nephrology and Kidney Transplant, and Liver Transplantation.

Financial difficulties and controversy

The hospital began operations in phases; in the first phase, 300 beds were ready. However, all of the wards meant for BMC patients were still under construction, and a memorandum of understanding (MOU) between BMC and the hospital had not been signed.[5] An expansion of the hospital (to open more of the 1,500 beds) was dependent upon the MOU. When the two parties could not agree on the terms, the matter was brought first to a civic house session (in 2010)[6] and then to the Bombay High Court (in 2011).[7] Finally, in 2013, SevenHills agreed to provide 20% of all hospital beds (general and ICU) and facilities to poor patients, and to provide medicines at BMC rates. In addition, BMC was given power to "take over the hospital" if the hospital violated the agreement. An MOU between BMC and Seven Hills was signed in December 2013, and the hospital received a certificate of occupancy.[8]

The delay in hospital expansion severely hampered the ability of SevenHills to raise revenue which, in turn, led to increased debt. In 2013, JPMorgan Chase, through its Asia Infrastructure Fund, invested Rs 2.7 billion in SevenHills, allowing it to add 300 beds.[9] A subsequent investment made JP Morgan a 35% owner in the company. In addition, hospital lenders, including Axis Bank, agreed to restructuring the hospital's debt of Rs 8 billion. Maganti remained the controlling shareholder.

In 2015–16, SevenHills reported revenue of Rs 2.3 billion and a loss of Rs 1.47 billion, and the company continued to operate at 20% capacity. According to SevenHills's annual report, "The current level of operations of the company could not support the fixed overheads (finance costs, depreciation and amortization expenses) incurred for its Mumbai Hospital. Time overrun, coupled with substantial increase in cost and lower operational level, had put strain on the operational cash flows of the company, thereby resulting in liquidity problem for the company".[10] As of 2017, only 300 beds at the Mumbai hospital are operational.

The Mumbai High Court gave the hospital until 31 March 2017 to repay its debts.[11] JP Morgan first tried to find a buyer for its holdings, then tried to gain control of the company. Other companies have also expressed an interest in buying out the hospital's debt, however, no agreements were reached.

On 20 November 2017, the hospital's lenders filed for insolvency, which will force an auction of the hospital. The total liability is estimated at Rs 1,100–1,200 crore.[12]

Hospital outreach

In 2010, the hospital launched a "Save a Heart" program for under-privileged children with congenital heart defects. In 2011, Bollywood actor Hrithik Roshan donated Rs 1.5 million for ten children who were in need of cardiac surgery.[13]

In 2012, the British Deputy High Commissioner gifted a Mobile Diabetes Unit to Seven Hills, the first such unit in Mumbai. The mobile clinic was named Amitabh in honor of actor Amitabh Bachchan, the international patron of Silver Star, a charity that specialises in raising awareness of diabetes.[14]

COVID-19 hospital

COVID-19 hospital
Org/Group:SevenHills Hospital
Location:Mumbai
Region:Mumbai
State:Maharashtra
Funding:Private
Type:Specialist
Beds:100
Speciality:COVID-19 patients
Opened:2020

In 2020, a COVID-19 hospital was constructed as part of the Seven Hills Hospital group in Mumbai City, India. It was constructed by Reliance Industries Limited for COVID-19 patients. It is the first dedicated COVID-19 hospital in India[15] and managed byReliance Industries Limited AND Brihanmumbai Municipal Corporation(https://en.wikipedia.org/wiki/Brihanmumbai_Municipal_Corporation)

for SevenHills Hospital Group.[16]

Notes and References

  1. Web site: India Inc finds wealth in health. 27 July 2009 . Jayakumar . P. B.. Rediff. 27 November 2017.
  2. Web site: Speech by Her Excellency the President of India, Shrimati Pratibha Devisingh Patil at the Inauguration of the Seven Hills Hospital . pratibhapatil.nic.in . 27 November 2017.
  3. Book: Duggal, Ravi. Kurian, Oommen C.. Wagle, Suchitra. Deosthali, Padma. Appropriate Role for the Private Sector in Health Care of India: Political Economy of Private Healthcare. 1 January 2013. Independent Commission on Development & Health in India and VHAI. 46–. GGKEY:NFZTFQJLXLZ.
  4. Web site: Raghunath. Pamela. One of Asia's largest hospitals to open in Mumbai. GulfNews. 27 November 2017. 2 July 2010.
  5. Web site: Seven Hills ready, not promised beds for BMC hospital patients. Express News Service . The Indian Express. 5 July 2010 . 27 November 2017.
  6. Web site: Seven Hills Hospital controversy continues at BMC. Mhaske. Pandurang. dna. 27 November 2017. 17 July 2010.
  7. Web site: Provide 20% medical facilities to poor for free: HC to SevenHills Hospital. DNA Correspondent . dna. 27 November 2017. 10 November 2011.
  8. Web site: Finally, Seven Hills Hospital agrees to reserve 20% beds for the poor . dna. DNA Correspondent. 27 November 2017. 15 November 2013.
  9. Web site: Khan. Zahra. SevenHills hospital to embark on next phase of expansion. www.livemint.com/. 27 November 2017. 15 May 2013.
  10. Web site: Dhanjal. Swaraj Singh. AION Capital in talks to buy Seven Hills Healthcare's $200 million debt. www.livemint.com/. 27 November 2017. 6 November 2017.
  11. Web site: Shah. Sneha. JP Morgan PE, promoter try to buy each other out of SevenHills. The Economic Times. 27 November 2017. 18 February 2017.
  12. Web site: Gupta. Deepali. Rajagopal. Divya. Lenders file insolvency plea against SevenHills Hospital. The Economic Times. 27 November 2017. 20 November 2017.
  13. Web site: Hrithik Roshan to save 10 hearts - Times of India. Dubey. Bharti. Masand. Pratibha. 29 January 2011. The Times of India. 27 November 2017.
  14. Web site: Amitabh Bachchan to receive mobile diabetes clinic as b'day gift - Times of India. PTI. 10 October 2012. The Times of India. 27 November 2017.
  15. News: Reliance Sets Up India's First COVID-19 Dedicated Hospital in Mumbai . News18 . 23 March 2020.
  16. News: Pandey . Piyush . COVID-19 Reliance sets up India's first dedicated coronavirus hospital . The Hindu . 23 March 2020 . en-IN.