Artemis Medicare Services Ltd announces strategic agreement to Operate & Manage 650+ Bed VIMHANS Hospital in South Delhi

Artemis Medicare Services Ltd. (AMSL / Artemis), one of India's leading private healthcare providers, today announced that it has entered into a Medical Services Agreement (MSA) to operate and manage Vidyasagar Institute of Mental Health and Neuro & Allied Sciences (VIMHANS).

Artemis holds long-term exclusive rights to provide medical services at a forthcoming 650+ bed multi-speciality hospital to be developed on a 3.5-acre land parcel in Nehru Nagar, Delhi. The land and building to be owned by the Dr. Vidya Sagar Kaushalya Devi Memorial Health Centre (VIMHANS).

The proposed hospital will have a total built-up area of approximately 7 lakh square feet. The facility will benefit from strong connectivity and access to a high-demand catchment in South Delhi and is expected to generate meaningful revenue and cost synergies with AMSL's existing NCR operations.

The hospital will be developed as a fully integrated 650+ bed tertiary and quaternary care facility, delivering advanced clinical programmes across all major specialties. Upon completion, the facility is expected to directly employ over 2,000 healthcare and support professionals, making a meaningful contribution to employment generation and strengthening the regional healthcare ecosystem.

In alignment with applicable regulatory and social obligations, the hospital will provide free treatment to eligible patients under EWS (Economically Weaker Sections) norms across both inpatient and out-patient services.

The project entails a total planned capital expenditure of approximately INR 500 - 520 crore, to be incurred in a phased manner, comprising around INR 350 - 360 crore in Phase 1 and an additional INR 150 - 160 crore in Phase 2, translating to an estimated investment of INR 75 - 80 lakh per bed.

Artemis will also provide an interest-free advance linked to the construction milestones of the facility, which shall be recovered by Artemis over an agreed period in accordance with the terms of the arrangement.

Commenting on the strategic significance of the development, Mr. Onkar Kanwar, Chairman, Artemis Medicare Services Ltd., said: "This expansion reflects Artemis' long-term vision of building a high-quality, future-ready healthcare platform in India. As a group, we are focused on scaling to 2,000+ beds over the coming years while maintaining strong clinical standards and governance.

Our growth strategy combines infrastructure expansion, advanced tertiary care programmes, and technology-led healthcare delivery. This partnership strengthens our NCR presence and reinforces our ambition to position Artemis among India's leading and most trusted healthcare brands."

Speaking on the operational and clinical roadmap of the project, Dr. Devlina Chakravarty, Managing Director, Artemis Medicare Services Ltd., said: "This new hospital will enable us to address the growing demand for high-quality healthcare in the South Delhi micro-market, a region characterised by strong ARPOB potential and favourable demand fundamentals. Beyond incremental capacity addition, this project is focused on creating a next-generation tertiary care institution built around clinical depth, digital integration, and operational excellence.

The facility will house advanced Centres of Excellence across neurosciences, cardiac sciences, oncology, organ transplantation, critical care, and robotic surgery, supported by high-acuity infrastructure and specialised clinical talent. We are embedding AI-enabled diagnostics, predictive analytics for clinical decision support, digitally integrated patient pathways, and smart ICU monitoring systems to enhance clinical outcomes, improve turnaround times, and optimise resource utilisation.

Importantly, this is a first-of-its-kind initiative that seamlessly integrates mental health services within the OPD and IPD ecosystem of a tertiary care hospital, addressing the growing need for comprehensive and holistic care delivery.

The project will be executed in a phased manner within our disciplined capital allocation framework, ensuring supply expansion is aligned with demand ramp-up. At the same time, we remain committed to our social responsibility mandate, including the provision of free treatment to eligible EWS patients.

This development further strengthens our NCR footprint in a synergistic manner and positions Artemis for sustainable, technology-led growth over the long term."

Source : Equity Bulls

Keywords

ArtemisMedicareServices MSA VIMHANS