Narayana Hrudayalaya signs a deal to run the 100-bed Mission of Mercy Hospital in Kolkata

What happened

• The agreement is with Mission of Mercy Hospital and Research Centre and The Assemblies of God of North India, according to Sahi.
• It gives Narayana Hrudayalaya exclusive rights to operate, manage, direct and control the 100-bed hospital; no land ownership or leasehold rights are transferred.
• Commercial operations are expected within 12 months, after conditions precedent are met.
• Separately, Whalesbook and TipRanks report the company received a GST demand order with a penalty of ₹53.15 lakh over corporate guarantees given to subsidiaries between April 2021 and October 2023. The company said the impact is immaterial and that it will appeal.

Why it matters

Good to know: In an operation and management agreement a company runs a hospital that someone else owns. This is often called an asset-light model because it does not involve buying land or buildings.

Key facts

Hospital

Mission of Mercy Hospital, Park Street, Kolkata (100 beds)

Type

Operation and management agreement

Expected start

Within 12 months, subject to conditions

GST penalty (separate)

₹53.15 lakh; appeal planned

Read the source

• Narayana Hrudayalaya Signs Operation and Management Agreement For 100-Bed Kolkata HospitalSahi
• Narayana Hrudayalaya Inks Deal To Manage Kolkata HospitalWhalesbook
• Narayana Hrudayalaya Faces GST Penalty, Plans to AppealTipRanks