Krishna Institute of Medical Sciences Ltd enters into agreement with Splendid Hospitals Pvt Ltd

Krishna Institute of Medical Sciences Limited ("the KIMS"), has entered into an Operations and Management Agreement with Splendid Hospitals Private Limited, Hyderabad, Telangana for an initial term of 7 years with an extension for a further period of 3 years on an exclusive basis, to run, manage, operate, direct and control the Hospital and provide the Medical Services at the Hospital in accordance with the terms and conditions under of this Agreement.

SPLENDID HOSPITALS PRIVATE LIMITED ('Splendid'), is a company incorporated and existing under the Companies Act, 2013 and having its registered office at Plot no 339/340 road no.4 Remedy Hospitals KPHB Colony Kukatpally, Hyderabad, Telangana, 500072.

Splendid is in the process of constructing a 150-bed hospital, under the name "Splendid Hospital," with a total floor area of 1,60,000 sq. ft.. The hospital has the potential due to the location and demand for hospital services and has the capacity to expand to over 200+ beds and will be equipped with the latest medical infrastructure, medical and diagnostic equipment, and multiple operation theatres.

The hospital is expected to commence operations in June 2025. To ensure the hospital operates efficiently and effectively, Splendid requires the services of a specialized and professional team of experts. Therefore, under the proposed O&M terms, Splendid intends to engage KIMS as the exclusive operator to manage, run, operate, direct, and control the hospital operations, and to provide or facilitate the provision of the medical services as outlined in the relevant schedule of the Agreement.

In consideration for the medical services fees and in accordance with the terms of this Agreement, KIMS is entitled to receive revenue fee of 9% (Nine percent) of the total Net Revenue.

The hospital currently has installed capacity of 150 beds and has potential to expand to 200+ beds.

Source : Equity Bulls

Keywords

KrishnaInstituteofMedicalSciences KIMS Operations Management Agreement SplendidHospitals