Krishna Institute of Medical Sciences Limited (KIMS Hospitals) has entered into an Operations and Management Agreement with Sarvottam Health Care Private Limited (SHPL). This agreement, effective from September 10, 2026, grants KIMS exclusive rights to manage, operate, and control SHPL’s hospital in Kakinada, Andhra Pradesh, for an initial term of 5 years. KIMS will receive a revenue fee of 9% of the hospital’s net revenue.
Strategic Expansion in Andhra Pradesh
Krishna Institute of Medical Sciences Limited, operating under the brand KIMS Hospitals, announced today the signing of a significant Operations and Management (O&M) Agreement with Sarvottam Health Care Private Limited (SHPL). This strategic move marks an expansion of KIMS’ operational reach and management expertise into the Kakinada region of Andhra Pradesh. The agreement, which commenced on September 10, 2026, is set for an initial term of 5 years, with an option for a further 5-year extension on an exclusive basis.
Scope of the Agreement
Under the terms of the O&M agreement, KIMS will be responsible for the comprehensive management of SHPL’s hospital. This includes running, operating, directing, and controlling all hospital operations to ensure the provision of high-quality medical services as outlined in the agreement. Sarvottam Health Care Private Limited, which commenced operations in 2010 and operates a state-of-the-art facility with a capacity of 183 beds, will benefit from KIMS’ extensive experience in healthcare management and operational efficiency.
Financial and Operational Benefits
In consideration for its management services, KIMS Hospitals is entitled to receive 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 offered. The agreement underscores KIMS’ strategy to leverage its management capabilities to drive growth and enhance its presence in promising markets like Andhra Pradesh, known for its significant growth potential in healthcare services.
About the Hospitals
Sarvottam Health Care Private Limited operates the “Trust Multi Speciality Hospital” in Kakinada. The facility boasts a built-up area of approximately 9847.23 square meters across 7 upper floors and a cellar, situated on a land parcel of 3001.36 square yards. KIMS Hospitals, a leading healthcare provider, aims to bring its world-class supervision, operational efficiency, and top-tier medical care standards to this new partnership.
Source: BSE
