Sahyadri Hospitals says selling stake will not impact functioning of its hospital

Sahyadri Hospitals Assures Uninterrupted Service Following Ownership Change

Following the Ontario Teachers’ Pension Plan Board's announcement of its majority stake sale in Sahyadri Hospitals Group to Manipal Hospitals, concerns arose regarding the future of patient care. However, Sahyadri Hospitals Group issued a statement on Thursday emphatically assuring the public that the transaction will not impact the quality or accessibility of its services.

Dr. Amitkumar Khatu, Chief Legal & Compliance Officer, stated, “This transaction solely involves the transfer of equity shares in Sahyadri Hospitals Private Limited. The day-to-day operations, commitment to patient care, and the overall ethos of Sahyadri Hospitals across all our Maharashtra units will remain unchanged.” He emphasized that this is not an unprecedented event, citing similar past transactions that had no negative effects on patient care.

Addressing specific concerns, Dr. Khatu clarified the situation regarding Deccan Hospital, a facility operating under a charitable trust model:

• Deccan Hospital's Charitable Status Remains Intact: The hospital’s structure and legal obligations, including its lease agreement with the Pune Municipal Corporation (PMC) for the land, remain unaffected by the equity transaction.
• PMC Lease Agreement: The 99-year lease agreement, secured in 1998, was finalized with full payment of the lease premium and rent. This agreement has no bearing on the recent equity transaction.
• Continued Commitment to Free Patient Care: Sahyadri Hospitals continues to fulfill its commitment to provide free treatment to patients referred by the PMC, averaging around 260 bed days annually. The provision of IPF benefits to eligible patients will also continue uninterrupted.

Dr. Khatu reiterated the hospital's dedication to its patients: “We deeply value the trust placed in us. This equity transaction will absolutely not affect access to or the quality of healthcare services at Deccan Hospital or any of our other hospitals. Our doctors remain the cornerstone of this institution, and our commitment to compassionate, accessible care will continue unchanged.”

He further urged the public to disregard misinformation, emphasizing Sahyadri Hospitals' ongoing dedication to compliance and patient-centric care. The hospital’s statement comes after the Pune Municipal Corporation served a notice to the Trust, seeking agreement copies related to the transaction. While the PMC noted the hospital's provision of free treatment to a number of patients referred by the civic body, this number remains within the established parameters of the lease agreement.

In short: Sahyadri Hospitals assures its patients that the recent equity transaction will have no bearing on the quality, accessibility, or affordability of its healthcare services.