Krishna Institute of Medical Sciences Limited (KIMS) has signed an Operations and Management Agreement with Aurevia Hospitals Private Limited (AHPL) to run its ‘Arete’ multispecialty hospital in Hyderabad for an initial term of 5 years. KIMS will provide medical services and receive a 9% revenue fee. Additionally, KIMS has secured a call option to potentially acquire AHPL’s business, subject to terms and conditions, signaling a strategic expansion in the Hyderabad region.
KIMS Expands Hyderabad Presence with New Operations Agreement
Krishna Institute of Medical Sciences Limited (KIMS) has announced a significant development with the entry into an Operations and Management Agreement (O&M Agreement) with Aurevia Hospitals Private Limited (AHPL), formerly known as Golden Lan Solution Private Limited. This agreement, effective from August 20, 2026, marks KIMS’ intention to manage, operate, and control the ‘Arete’ hospitals, which AHPL recently acquired via a Business Transfer Agreement on July 3, 2026.
Strategic Operations and Management Deal
Under the terms of the O&M Agreement, KIMS will oversee the operations of the Arete hospital for an initial period of 5 years, with an option for a further 5-year extension. This arrangement allows KIMS to provide its medical services at Arete. In return for these services, KIMS is entitled to a revenue fee equivalent to 9% of the total Net Revenue generated by the hospital. Net Revenue is defined as gross revenue billed to patients minus any concessions and discounts.
Potential Acquisition Opportunity
In addition to the operational management, KIMS has also entered into a Call Option Agreement with AHPL. This agreement grants KIMS the option, but not the obligation, to acquire the hospital business in the future. The potential acquisition would be subject to specific terms and conditions, and at a price to be determined in definitive documents. This dual agreement underscores KIMS’ strategic interest in expanding its footprint and operational control within the healthcare sector.
Arete Hospital Overview
The Arete hospital, located in Gachibowli, Hyderabad, is a multispecialty facility with an operational capacity of approximately 250 beds. Situated in a prominent IT hub, it aims to cater to the growing demand for comprehensive healthcare services, offering primary, secondary, and tertiary care across various medical and surgical specialties. AHPL’s acquisition of this hospital business positions it for further development under KIMS’ management expertise.
Company Background
Krishna Institute of Medical Sciences Limited is a leading healthcare provider in India. Aurevia Hospitals Private Limited, previously Golden Lan Solution Private Limited, is a company incorporated under the Companies Act, 2013, with its registered office in Hyderabad, Telangana.
Source: BSE
