Krishna Institute of Medical Sciences (KIMS) has announced a strategic expansion through its subsidiary, KIMS Swastha, entering into a 20-year operations and management agreement with Avitis Super Speciality Hospitals in Palakkad, Kerala. The deal grants KIMS exclusive control over the 210-bedded facility. Beyond management, the agreement includes a significant financial commitment and provides KIMS with a future call option to potentially acquire a majority stake in the hospital.
Strategic Hospital Partnership
KIMS Swastha, a wholly-owned subsidiary of Krishna Institute of Medical Sciences, has officially entered into a long-term definitive agreement for the management of the Avitis Super Speciality Hospital. Effective April 2, 2026, this partnership marks a significant milestone in KIMS’s growth strategy, allowing the company to extend its clinical expertise and operational excellence to a new 210-bedded facility in Palakkad, Kerala.
Financial Terms and Consideration
The agreement outlines a robust financial framework, including an operations and management payment of ₹29.75 crore and a ₹25 lakh security deposit for the land sub-lease. Under the revenue-sharing model, KIMS will pay Avitis the higher of a minimum monthly guarantee of ₹22 lakh or 4% of the hospital’s total net revenues, which incorporates the sub-lease rental fees.
Operational Control and Future Growth
Under the terms of the deal, KIMS assumes exclusive supervision and control of the facility, ensuring the implementation of its standardized medical protocols and operational efficiencies. The agreement is set for an initial tenure of 20 years. Furthermore, the contract includes a strategic call option, granting KIMS the right—though not the obligation—to acquire a majority shareholding in Avitis at its sole discretion, providing a potential pathway for deeper integration in the future.
Source: BSE
