Date of investment: August 2001

A movement called ‘CARE’ was founded in 1997, when Padmashri Dr B Soma Raju led a team of medical professionals to set up the first CARE Hospital. Based on the unique “Group Physician” model, where-in all key physicians were committed full-time to CARE and had significant equity interest, it was a multi-speciality hospital with presence in South India with cardiology as the anchor speciality. At the time of IVFA’s investment, CARE had 3 hospitals with total of 400 beds, largely providing tertiary care.

With IVFA, CARE planned to spread its healing touch by building a high quality professional management team thereby and creating the management bandwidth for rapid expansion. It also tied up with TPAs and Central Government Health Scheme to diversify and scale up revenues and signed an educational tie-up with Mayo Clinic (USA). CARE set up a new 350 bed multi-specialty hospital at Banjara Hills in Hyderabad. At the time of IVFA’s divestment in January 2004, CARE had 7 hospitals with around 800 beds.

• IVFA investment rationale >
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  Healthcare industry is extremely fragmented, which will witness increasing corporatization with the entry of private insurance players CARE represented a leading chain of 3 super-speciality hospitals based in Andhra Pradesh offering world class cardiac care; which can grow to become a multi-speciality chain CARE was promoted and managed by leading cardiologists, following the “Group Physician” model
• IVFA value addition >
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  Assisted in restructuring and strengthening of the management team, organization and processes Helped in implementing Hospital Information System Developed a marketing plan Identified new hospitals and doctor groups in other cities for tie-up and expansion

"Our association with IVFA has been extremely beneficial. The IVFA team has worked closely with us to build depth in managerial competence in our organization. This marriage between our professional competence as Doctors and management depth which IVFA helped to create has generated superlative value for our business." Dr Krishna Reddy - CEO, Quality Care India Limited.

Detailed information on the Company is available at www.carehospitals.com