KUALA LUMPUR (July 23): IHH Healthcare Bhd (KL:IHH), in which Khazanah Nasional Bhd owns an indirect stake of 25.91%, is consolidating its hospital operations in India by integrating the services of its two subsidiaries — Fortis Healthcare Ltd and Gleneagles Healthcare India Pvt Ltd — under a single operation.

Under a new operations and maintenance (O&M services) agreement, IHH said its 31.17%-owned Fortis Healthcare Ltd will manage five out of six Gleneagles hospitals in India, according to a joint statement on Wednesday.

IHH owns 100% stake in Gleneagles Hospitals India.

“This is a significant step towards strengthening IHH’s pan-India healthcare platform with enhanced operational scale, clinical excellence, and geographical reach, while retaining their respective talent pool and autonomy in financial management,” the group said.

The latest agreement, subject to final acknowledgements by relevant parties, is expected to unlock synergies in operations and finances, while also enabling broader access to care across 11 Indian states.

“The O&M services agreement reflects our commitment to long-term growth in one of our most important markets, by deepening collaboration that will enhance patient care and outcomes and drive greater operational efficiencies,” IHH group chief executive officer Dr Prem Kumar Nair said.

Fortis, which is listed in India’s National Stock Exchange (NSE), currently operates 27 healthcare facilities with about 4,750 operational beds and over 400 diagnostic centres through Agilus Diagnostics Ltd.

Gleneagles India, meanwhile, operates six hospitals with 1,500 beds located in Mumbai, Chennai, Bengaluru, and Hyderabad, with clinical expertise in cardiology, oncology, organ transplants and other tertiary and quaternary care services.

Shares in IHH settled up two sen or 0.3% to RM6.62 on Wednesday, valuing the group at RM58.5 billion.