Hospital chain Krishna Institute of Medical Sciences Ltd on Thursday said it has entered into an Operations and Management Agreement with Sarvottam Health Care Private Ltd to exclusively manage, operate, direct and control its hospital in Kakinada, Andhra Pradesh.
Under the agreement, KIMS will receive a revenue fee of 9% of the hospital’s net revenue. Net revenue is defined as gross revenue billed to patients after deducting concessions and discounts offered to patients. The agreement is for an initial term of five years, with an option to extend it for a further five years.
Sarvottam Health Care Private Hospital is operating under the brand name Trust Multi Speciality Hospital and currently has an installed capacity of 183 beds. The hospital began operations in 2010 with 50 beds and commissioned an additional 183 beds after inaugurating a new hospital building in 2021.
It will also provide or facilitate the provision of medical services covered under the agreement. The hospital is spread across a built-up area of approximately 9,847.23 square metres on company-owned land measuring 3,001.36 square yards. KIMS said the agreement will enable Sarvottam Health Care Private to benefit from its management expertise, while expanding KIMS' presence in Andhra Pradesh.
Shares of Krishna Institute of Medical Sciences Ltd ended at ₹774.00, up by ₹1.20, or 9.20%, on the BSE.