Bengaluru-based Columbia Asia has decided to exit its loss-making hospital project in Ahmedabad. This is the first hospital project that the group is exiting ever since it started its operations in India.
According to sources, “The company has decided to exit the market as the hospital has been incurring huge losses and had never ever attained operational breakeven.” The group is slated to exit the unit by September.
The hospital is a Greenfield project built ground up and was started in the year 2014. The 107-bed hospital has a built – up area of over one hundred thousand square feet. “The cost of the project was around Rs 130 crore,” said sources.
According to market analysts, the hospital could never be profitable due to the local market dynamics. “Ahmedabad is a doctor-driven market than a brand driven market. Columbia Asia’s model of full-timers may not have worked for doctors in Ahmedabad where doctors prefer fee for service model and even group practice.”