KIMS Expands Andhra Pradesh Footprint with O&M Deal for 183-Bed Kakinada Hospital

The Kakinada agreement follows a similar O&M arrangement announced by KIMS in August for the 250-bed Arete Hospital in Gachibowli, Hyderabad.

Krishna Institute of Medical Sciences (KIMS) has entered into an Operations and Management (O&M) agreement with Sarvottam Health Care (SHPL) to manage the 183-bed Trust Multi-Speciality Hospital in Kakinada, Andhra Pradesh, further expanding its hospital management footprint in the state.

The agreement gives KIMS exclusive responsibility for managing, operating, directing, and supervising the hospital, which is operated by Sarvottam Health Care under the Trust Multi-Speciality Hospital brand.

The arrangement has been signed for an initial period of five years and can be extended for another five years.

Under the O&M agreement, KIMS will receive a management fee equivalent to 9% of the hospital's net revenue.

Trust Multi Speciality Hospital began operations in 2010 with an initial capacity of 50 beds.

Following the inauguration of a new hospital building in 2021, the facility expanded its infrastructure and commissioned additional bed capacity, and it currently has an installed capacity of 183 beds.

The O&M agreement allows Sarvottam Health Care to leverage KIMS' hospital management capabilities while enabling KIMS to strengthen its presence in Andhra Pradesh without directly acquiring or developing the facility.

KIMS operates a network of hospitals and healthcare facilities across multiple locations in India and has been expanding through a mix of new facilities, acquisitions, and management arrangements.

The Kakinada agreement follows a similar O&M arrangement announced by KIMS in August for the 250-bed Arete Hospital in Gachibowli, Hyderabad.

Under that five-year agreement with Aurevia Hospitals, KIMS will also receive a 9% revenue fee based on net revenue, with an option to extend the arrangement for another five years.

KIMS' latest arrangement therefore adds another established hospital to its operating network while continuing an asset-light approach to expanding its healthcare footprint.

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