Kaveri Medical Centre to acquire Seahorse Hospital in Trichy

Venkatachari Jagannathan
03 August 2007

Chennai: The Tiruchirapalli-based closely held Kaveri Medical Centre and Hospital is in advanced stages of acquiring the publicly listed 175-bed super specialty Seahorse Hospitals Limited, also located in Tiruchirapalli.

Confirming that the acquisition talks are in advanced stages Kaveri Medical Centre''s managing director Dr S Chandrakumar said, "We have agreed in principle to acquire Seahorse Hospitals. However, a few finer points are remaining to be settled."

These "finer points" are believed to be over the valuation and the final purchase price. Moreover, Kaveri Medical Centre is still in the process of completing it''s due diligence audit of Seahorse Hospitals.

For the Rs16-crore turnover Kaveri Medical Centre, its acquisition target will be an apt fit. The 225bed Kaveri Medical Centre currently caters largely to accident and emergency cases, but is unable to cater to the needs of corporate clients who demand special facilities. In addition, with the increase in the penetration of health insurance, the demand on hospitals is expected to rise.

Says Dr. Chandrakumar, "The hospital has an occupancy ratio of over 90 per cent and we have been turning away patients to other hospitals. Currently we are able to cater to the population living in the 50 kilometres radius. The acquisition would not only increase our bed capacity but also enable us to acquire new departments like oncology, mother and child care, diabetes care and others."

With software companies setting up their operations in Tiruchirapalli, he expects better business and cater to the population living in the 100 kilometres radius.