Sparsh Hospitals eyes Tier-2 cities for expansion

Sparsh Hospitals eyes Tier-2 cities for expansion

The orthopaedic hospital chain, run by Dr Sharan S Patil, has drawn up Rs 700 crore expansion plan in Karnataka

File photo. Source:

The Bengaluru-based Shiva and Shiva Orthopaedic Hospitals Private Limited (SSOHP), which runs a chain of hospitals under the brand ‘Sparsh’, plans to expand its network across Karnataka by opening 20 more hospitals in the next five years, at an investment of Rs 700 crore.

The company, which is owned and operated by the city’s well known Orthopaedic surgeon Dr Sharan S Patil, currently operates three hospitals in Bengaluru and one in Davanagere. It is opening its fifth hospital in Hassan very soon. Sparsh hospital is specialised in orthopaedics, plastic surgery and maxillo facial treatments. It also offers organ transplant surgeries and cancer care.

“Our aim is to provide affordable medical care to the people of Karnataka and we want to be present within 75 kms radius for any patient at any time. Over the next five years, we want to open at least 20 hospitals across key Tier-2 cities in Karnataka and at multiple locations in Bengaluru,” Dr Patil told DH.

He said the company will either acquire existing hospitals with at least 100 beds capacity and good infrastructure or set up a greenfield hospital mainly in Tier-2 cities. In Bengaluru, the company intends to set up its own new hospitals. “There are many small hospitals that cannot run on their own and need partners. We are looking to acquire such hospitals,” Dr Patil said adding that each hospital will see an investment of Rs 50 crore.

Each hospital in a Tier-2 city will have 75-100 beds, while the proposed hospitals in Bengaluru will have at least 200 beds each. During the current year, the company plans to open hospital in Yelahanka, Hassan and Kalaburagi. From 2019 onwards, the company will open three to four new hospitals every year, he said.

“Over the next five years, we need around 110 orthopaedic surgeons and we will pick them from across the state, train them at our Bengaluru hospitals and deploy in smaller cities,” Dr Patil said.

It recently acquired a hospital in Hassan and relaunching it under the ‘Sparsh’ brand after upgrading it. The hospital has 100 beds and will provide treatment for majority of ailments.

The company will require an estimated Rs 80-100 crore per hospital in Bengaluru and around Rs 50 crore for a hospital in Tier-2 cities. “Till now, we have funded the expansion through bank loans and internal accruals. Going forward, we may have to raise funds from strategic investors. We are looking to raise around Rs 500 crore one year from now from private equity players by divesting equity stake,” Dr Patil said.

For the year ended March 2018, SSOHP reported a topline of Rs 160 crore and is looking at a growth of 35% in the current financial year.

Get a round-up of the day's top stories in your inbox

Check out all newsletters

Get a round-up of the day's top stories in your inbox