A new partnership to invest in health care services beyond conventional hospital services, Â has been launched today by CDC Group Plc, the UKâ€™s Development Finance Institution and the Dr Ranjan Pai-led, Manipal Education and Medical GroupÂ (MEMG)Â
The two institutions, have come together to invest an initial Rs500 crore in innovative opportunities Â in India, Africa and elsewhere in South Asia, with aspirations Â to invest even more in the future.Â
The platform will target a wide range of out of hospital care services/companies, from those providing diagnostic services through to comprehensive home healthcare services. Companies in the molecular diagnostic space in India and infectious diseases investigations in Africa have been already identified for investment by the partnership.
The partnershipâ€™s primary focus will be on building scale through acquisitions and will back entrenched market players and strong management teams. The platform will supportÂ Â firms that are currently constrained to Â Â grow beyond a certain level due to management and financial limitations. The CDC/MEMG platform will provide such companies Â Â access to professional management and creating value by being part of a broader network.
While this partnership will incubate and grow businesses in â€˜Healthcare Beyond Hospitals,â€™ both MEMG Â Â and CDC will continue independently to pursue investing in the conventional hospital space in the targeted markets.
Welcoming the announcement, Dr Ranjan Pai said:Â â€œWhile traditional hospitals will continue to deliver high end care and inpatient services, healthcare providers have realised the need to evolveÂ alternateÂ formats Â which will complement hospital services and where care can be delivered in â€œOut of Hospitalâ€ set ups and closer to patientsâ€™ homes, . The companies weâ€™re looking to back will be heavily reliant on new technology to improve quality of service and access. High quality care, fair pricing and patient convenience – these are Manipalâ€™s core principles and will drive our investment thesis.â€ He added that the potential of investments through this platform to create a strong development impact, is one of the primary drivers for his partnership Â with CDC
Srini Nagarajan, CDCâ€™s Head of South Asia said:Â â€œCDC is committed to supporting the growth of the healthcare sector in India because of the jobs created and the innovations that can improve access and bring higher quality care for all patients.Â Weâ€™re delighted to be working with Manipal, a strong operational partner, who have pioneered healthcare delivery and education in India. We will Â Â provide long-term finance to the next generation of businesses that can help transform healthcare services beyond the hospital space.â€