United Health Care

NEW DELHI: Ten months after the World Bank published a report alleging rampant fraud and corruption in Indian healthcare projects including supply of sub-standard HIV testing kits, the Central Information Commission (CIC) has pulled up the National AIDS Control Organisation (NACO) in connection with the charges.

NACO will now have to explain the "factual position" with regards to the allegations of sub-standard HIV diagnostic kits supplied by a private player and documents related to investigations by World Bank in the matter.

The CIC issued a show cause notice to NACO, the nodal agency handling HIV control strategies and their implementation in the country, asking it to explain why the maximum fine of Rs 25,000 should not be slapped on the organisation for withholding requisite information when demanded.

Hearing the petition of R Venkataraman, who sought all the documents of related investigations in the matter from NACO, the CIC directed the organisation "to provide the appellant with the DIR report of the World Bank along with the factual position with regard to HIV Kits in India and NACO's recommendations based on the World Bank report".

In January 2008, the World Bank published a report showing rampant fraud and corruption in Indian healthcare projects including supply of sub-standard HIV testing kits.

Appellant Venkataraman stated before commission that both World Bank and NACO were involved with the investigation of complaints against the sub-standard kits and pleaded to provide him the same.

Information Commissioner Annapurna Dixit observed, "This information is being sought very clearly in public interest as cited by the appellant and therefore believes that it has every reason for overriding any apprehension which the Public Authority may have on its disclosure."

NEW DELHI: Religare Wellness (formerly Fortis Healthworld), the privately-held pharma retail chain owned by Malvinder and Shivinder Singh, has bought 100% stake in Lifetime Healthcare for an undisclosed amount.

Bangalore-based Lifetime Healthcare operates over 70 pharmacy and wellness stores in Bangalore, Chennai, Hyderabad and Pune under the LifeKen and Pill & Powder brands.

Though the deal value stands undisclosed, sources intermediating in the deal say, it is a cash-plus-stock transaction. The promoters of Lifetime Healthcare will get a small minority stake of Religare Wellness in the future.

Formed in 2005 by two entrepreneurs MC Kini and A Suryanarayanan, Lifetime Healthcare had received funding worth Rs 40 crore in 2006 from the Mody family, who own pharma company JB Chemicals. Following this, it had charted out nationwide expansion plans.

Religare Wellness CEO Sanjeev Chaudhry said, “The shareholders of both Religare Wellness and Lifetime Healthcare believe the deal is a significant step in building of a large-scale, pan-India entity that will lead the wellness retail sector in India.”

The Delhi-based firm is aggressively pursuing expansion by buying out rival firms to compete in the fragmented Rs 33,000-crore domestic drugs retail market. Organised pharmacy chains account for less than 5% of the overall market.

This is the second acquisition by Religare Wellness in the recent times, as it expands presence across the country. In August, it had acquired Delhi-based company CRS retail which had around 40 stores.

With the latest acquisition, Religare Wellness will have around 200 retail outlets across the country. Speaking on behalf of the promoters, senior group executive Sunil Godhwani said, “As a group we have a significant understanding of both the retail and wellness space which we shall leverage effectively going forward.

BANGALORE: Skyline Group, Bangalore-based builder of luxury homes, signed a management agreement with Frasers Hospitality, an international hospitality major to make its foray into the hospitality sector.

For construction provider Skyline Group, this will be the first initiative in the serviced residence space and for Frasers, the hospitality arm of property group Frasers Centrepoint Limited, its first move in the Indian market, a
company statement said.

The inking of the agreement was presided over by Singapore's Minister for Finance, Tharman Shanmugam. The agreement currently includes two projects in Bangalore constructed by Skyline Group and managed by Frasers Hospitality which is a global serviced residence owner and management company with gold-standard residences.

The serviced residences that will be constructed will be branded "Fraser Place" and "Fraser Residence Beverly Park" respectively. Shanmugaratnam described the partnership as a symbol of synergy and opportunities that exist between businesses in India and Singapore despite the current economic turmoil.

Managing Director of the Skyline Group Avinash Prabhu expressed confidence that the Fraser brand which had a loyal following in Europe, Australia and Asia will "appeal to the business visitor, expatriate community as well as Indian businessmen and professionals on medium-term travel".

Choe Peng Sum, CEO of Fraser Hospitality said "Indian hospitality market is very short on high-quality branded accomodation and our partnership with Skyline Group is an attempt to bridge the huge demand-supply mismatch that exists".

BANGALORE: India was soon growing to be a popular medical destination following the availability of health care facilities that matched international standards but offered it at a fraction of the cost abroad.

The estimated international medical tourist arrivals to India was 4,50,000 as against Singapore's 4,20,000 and over a million in Thailand, said Vishal Bali, CEO, Wockhardt.

Nearly 13 hospitals in India had been JCI (Joint Commission International) accredited. JCI was the US-based quality assessor that awards accreditation to hospitals outside US.

The Deloitte Study on medical tourist estimates that 750,000 Americans travelled abroad for health care in 2007 and the number is estimated to increase to six million by 2010.

The study estimates that the Global market for Medical tourism tobe currently at 60 billion dollars.

The growing cost of healthcare in the US, the high premium to be paid is leaving a lot of American out of the insurance cordon. Nearly 70 million US citizens were underinsured or not insured. In comparison health care cost in India was nearly just a fraction of the cost incurred in the US.

A cardiac surgery, which would cost 9000 USD, in India would cost around 75,000 to 100,000 USD in the US. A spine surgery costing around 8000 to 9000 USD in India could cost around 65,000 USD while a joint replacement in India would have a patient paying up around 8500 USD while it would cost around 55,000 to 65,000 USD in the states, says Bali.

Even with the travel to India and stay cost involved, patients would still end up paying much less if they chose India as an option to undergo treatment, he said which was leading to more US patients looking to India.

NEW DELHI: Wockhardt group will invest Rs 1,000 crore in the next three years for expanding its healthcare infrastructure.

"We have lined up investments of Rs 1,000 crore, which will be spend in the next three years on tripling the capacity of our healthcare business," Wockhardt chairman Habil Khorakiwala said on the sidelines of India Economic Summit organized by the World Economic Forum here.

The company has 15 hospitals in the country with a combined capacity of 1,500 beds and is going to increase it to 4,000 beds in the next three years.

The company is looking for private equity investment to raise the fund and is at the advanced stage of negotiations Khorakiwala said without giving further details.

"We will finalise the equity deals in next three-four months," he said.

When asked about the impact of credit crisis on the company's business, he said "healthcare is a sector which would get least affected by this".

However, M&A activities will slow down because of liquidity crunch but we are not facing any problem for raising the fund, he added.

Wockhardt is looking at a growth of 20 per cent in the current year and expected to maintain it in near future.

Pharmaceutical and healthcare firm is expecting a better growth in its US business as it has around 50 approvals in pending, which is expected to come in a period of 18 months to two year.