Hyderabad: Hospital readmission is an important contributor to total medical expenditure and an emerging indicator of quality of care. Recognising this, India is witnessing the emergence of a new model of care with more number of organised players coming to the picture to provide protocol-based post hospitalisation care for effective recovery.
Hyderabad-based SuVitas Holistic Healthcare is aiming big in the transition care category, by foraying into Chennai and Mumbai in the near future followed by key tier-2 cities across India. It plans to have about 10 facilities in five years with 500-bed capacity, with a cumulative investment of about Rs 75 crore.
Dr Harish Kalathil, director-Operations, SuVitas Holistic Healthcare, “In addition to the 48-bed centre we operate in Hyderabad, we have set up a new 53-bed facility in Bengaluru in June this year. In Hyderabad, there has been 85-90 per cent occupancy. We need to have a healthy market. We want to expand to Chennai (April 2019), Mumbai (2019-end), followed by Pune, Gurugram, Chandigarh, Cochin and Coimbatore. These cities have good healthcare system with reasonable number of hospitals.”
The company has been meeting its growth needs so far through funding from family and friends, and once it establishes its fourth centre in Mumbai by end of calendar year 2019, it will look for PE funding. The company has been investing about Rs 7-7.5 crore in each facility. The aim is to create 500 beds in the next five years with each facility to have around 50-bed capacity, with ten centres. It plans to set up at least 2-3 centres each year after 2019 in the proposed cities.
The company has achieved break-even in April this year and has an earnings before interest, tax, depreciation and amortisation (EBITDA) of 20 per cent. It aims to have a run rate of Rs 12 crore from each unit now and post 2019, Rs 15 crore from each unit.
He says, “With a steep rise observed in the number of re-admission cases in the country, healthcare industry is realising the importance of a new model of care that thrives on empowered and effective recovery. We take patients who come out of ICUs of hospitals and provide them the post-surgery/ treatment care as residents in our facilities.
The amount of critical bed availability is less in India. And those who are not in need of a critical bed need not have one and can be treated in a step-down facility where they can get an active and supervised medical care, paving way for the most needy to use critical beds. SuVita is creating long-term acute care platform.”
Transition care will include neuro-rehabilitation, people needing acute and nursing care, or those who had amputations or have bed sore and those cancer patients needing palliative care. Such care cannot be provided at home. Transition care centres can provide nursing and rehabilitation to patients. SuVitas is also exploring to have active engagement with those who had strokes in the tertiary hospitals. Earlier the rehab, the patients will recover faster.
Kalathil says, “We are an extension of the primary physician in the healthcare set up. Our facilities have a team of doctors, nurses, physiotherapists and occupational therapists, respiratory therapists, which helps in faster recovery. Our facilities will help in avoiding readmission and address the toll on insurance. We also can address the infection related concerns.”
India spends 3 per cent of GDP on healthcare while matured markets spend in double digit. The transition care market in India is estimated at about $6 billion and multiple players are likely to enter the sector soon. Transition care will evolve further in the country, if health insurance will cover it, he points out.