M&A boom sweeps Gujarat’s pvt healthcare market

Vadodara/Ahmedabad: Gujarat's private healthcare sector is witnessing a strong wave of consolidation, with mergers, acquisitions and operational tie-ups accelerating across key cities such as Ahmedabad, Vadodara and Surat.Recent deals indicate a clear strategic shift among large hospital chains, which are increasingly expanding capacity and strengthening regional presence through acquisitions rather than greenfield projects.Among notable transactions, the 300-bed Zydus Multispecialty and Cancer Hospital in Vadodara acquired the 50-bed VINS Hospital in Jan. In another deal, Vadodara-based Gujarat Kidney and Super Speciality Ltd (GKSL) took over Ahmedabad's Parekhs Hospital for Rs 77 crore on March 22, strengthening its footprint in central Gujarat.Expanding in western India, Marengo Asia Hospitals recently acquired majority stakes in Sunshine Global Hospitals, which operates two NABH-accredited facilities in Surat and Vadodara with a combined capacity of 400 beds. This has taken Marengo's total capacity in Gujarat to more than 1,150 beds, positioning it among the larger hospital networks in the state."As we expand in western India, we are emerging as one of the largest players in Gujarat," said Dr Raajiv Singhal, founding member, group managing director and CEO of Marengo Asia Hospitals.Industry sources added that consolidation was being driven by both the expansion ambitions of large hospital chains and operational pressures on smaller, doctor-run hospitals. While large players seek scale and multi-city networks, smaller hospitals grapple with rising administrative costs, regulatory compliance, insurance integration and digital infrastructure needs."Running a hospital today goes beyond clinical care. Accreditation standards, insurance processes and administrative systems require significant investment, which smaller setups often find difficult to sustain," an industry observer said.The consolidation trend was also visible in specialised segments. Hyderabad-based Maxivision Super Speciality Eye Hospitals has integrated Ahmedabad's SRG Eye Hospital into its network and plans to invest Rs 150 crore in Gujarat over the next two years. The company aims to double its presence from 10 hospitals, focusing on advanced eye care. "Gujarat is a strategic growth market for us," said Dr GSK Velu, chairman and managing director of Maxivision. "After building a strong base in cities like Rajkot, Morbi, Jamnagar and Surat, we are evaluating opportunities in other major centres."Regional players are also expanding through acquisitions. Bhailal Amin General Hospital (BAGH) has acquired two facilities in Vadodara, including one in the old city and a 50-bed unit in Gotri, which is expected to become operational soon.Similarly, Vadodara-based Parul Sevashram Hospital (PSH) has acquired hospital operations in Channi, Padra and Halol. "We are also in talks with other hospitals," said Dr Geetika Patel, director of PSH and vice-president of Parul University.Industry experts say corporate hospital chains benefit from stronger procurement systems, standardised clinical protocols and better financial management, enabling improved efficiency and profitability. In contrast, standalone hospitals often face challenges in scaling due to limited administrative capabilities.Analysts attribute the trend to Gujarat's strong industrial base, rising urbanisation and growing demand for advanced medical care.