Daijiworld Media Network - Bengaluru (MS)

Bengaluru, Nov 10: In a shocking development, well-known hospital of the city Narayana Hrudayalaya at Whitefield in the city was shut down. According to the management of the company the unit was shut because it could not scale up according to their expectations.

In an exchange filing on late Friday evening, Narayana Hrudayalaya said, "The hospital was opened as an upmarket segment which provided day-care and short-stay facilities except Cardiac care and Oncology. But the facility could not grow due to multiple reasons. The inability of the lessor to provide additional infrastructure also is one of them."

Narayana Hrudayalaya opened this facility on 1.1 lac square feet area in 2013 at Whitefield of the city with a capacity of 91 beds. The goal of the company was a phase-wise expansion of the hospital to make it an economically viable and sustainable project. The company owns 21 hospitals and looks after the management of two hospitals. In addition, this healthcare chain company hass 19 primary health care centres and seven heart centers including one hospital in the Cayman Islands.

Surprisingly, the consolidated net profit of the company jumped to Rs 45.3 crore from Rs 13.6 crore, a three-fold increase for the second quarter of the fiscal. The consolidated revenue of the company shot up by 15.6% to a whopping Rs 822.3 crore. The operating income of the hospital reported for the same quarter was Rs 128 crore, a jump of 68.3%.

These profits were the result of dynamic sales strategy of the company as well as advanced accounting standards for rental and leases of its facilities. The hospital chain is led by renowned Cardiac surgeon Dr Devi Shetty.