Fortis to Operate Five Gleneagles Hospitals Under IHH’s India Strategy

The move aims to enhance IHH’s India platform with expanded operational scale, clinical strength, and broader geographical presence, while preserving independent financial management and existing talent across the two entities.

Malaysia-based IHH Healthcare Berhad has initiated a fresh operational arrangement between its Indian subsidiaries Fortis Healthcare and Gleneagles Healthcare India Private Limited as part of a broader effort to consolidate healthcare services in the country.

“Under an operation and maintenance services agreement, Fortis will manage the operations of five out of six hospitals under the Gleneagles India network,” according to a note on the transaction. 

The move aims to enhance IHH’s India platform with expanded operational scale, clinical strength, and broader geographical presence, while preserving independent financial management and existing talent across the two entities.

A note on the collaboration said the new structure intends to unlock “operational and financial synergies” across both hospital networks under a shared focus on high-quality, patient-centric care. 

However, the agreement is subject to approvals and acknowledgments from the relevant parties.

Dr Prem Kumar Nair, Group CEO of IHH Healthcare, stated, “The O&M Services agreement reflects our commitment to long-term growth in one of our most important markets, by deepening collaboration that will enhance patient care and outcomes and drive greater operational efficiencies. With our shared commitment and complementary strengths, we are creating a comprehensive pan-India hospital network to meet the evolving healthcare needs of millions across the country.”

This development is part of IHH’s ongoing India strategy, which, according to Dr Nair, includes growing through its “twin engines”—the Fortis and Gleneagles hospital chains.

Despite these operational changes, the larger transaction involving IHH’s 31.1 per cent stake in Fortis, acquired in 2018, remains unresolved. Its open offer to complete the transaction is still entangled in legal proceedings stemming from earlier disputes between Fortis’ former promoters, the Singh brothers of Ranbaxy, and Japanese pharmaceutical company Daiichi Sankyo.

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