Overseas Investment Firms Buy Major Stakes In Kerala Hospitals; Experts Warn 'To Solely Maximise Profit'
Thiruvananthapuram, Kerala: Private equity investors are pouring thousands of crores into Kerala’s healthcare sector, with firms such as US based KKR and Blackstone wholly and predominantly acquiring hospitals and clinics in the state. The foreign companies’ takeover of Kerala multispecialty hospitals have raised alarm. Several hospitals in the state have already come under the direct control of overseas investment firms.
According to Dr John C Panicker, senior ENT consultant in Thiruvananthapuram and president of Trivandrum Medical College Alumni Association (TMCAA), the trend is dangerous for the state and its people. Over the past three years, more than 7000 crore has been invested by foreign companies in several hospitals across Kerala.
Dr. John Panicker says these foreign companies are not actually working in the healthcare sector; they are purely investment firms operating solely to maximise profits.
What will be the situation of the health sector if this trend is allowed to continue?” the doctor asked, pointing out that Kerala currently has one of the best healthcare systems, offering facilities that would cost tens of times more in the US and several European countries.
In 2023, New York-based Blackstone acquired controlling interests in Care Hospitals and Kims Health in a multi-layered deal valued at $1 billion. The company has secured a majority stake in KIMS, with investments totaling over Rs 800 crore from TPG, forming a massive hospital platform.
This trend is driven by Kerala’s health-conscious population and a willingness of existing owners to sell. Some of the hospitals whose shares have been aquired by Blackstone are: Aster Medcity Hospital Kochi, Aster MIMS Calicut, Aster MIMS Kannur, Aster MIMS Kottakkal, Aster MIMS Mother Areekode, Aster PMF Kollam, KIMS Alshifa Super Speciality Hospital Perinthalmanna, KIMS Kottayam, KIMS Kollam, Aster Mimes Kasaragod.
Hospitals that sold major shares to US global private investment company, KKR include: Baby Memorial Kozhikode, Baby Memorial Kannur, Baby Memorial, Payyanur, Baby Memorial, Vatakara, Baby Memorial Thodupuzha, Meitra Hospital Kozhikode.
