Sevenhills to be sold as lenders initiate insolvency proceedings

Bids have been invited from prospective buyers by the National Company Law Tribunal-appointed resolution professional for city's Sevenhills Healthcare, a multi-speciality hospital which also has a presence in Visakhapatnam. The move comes after lenders initiated insolvency proceedings, a first for a large multi-speciality hospital.

Staff unpaid

The hospital that opened amid much fanfare in 2010 has run into debts worth nearly ₹1,300 crore. Most doctors and staff members have left due to non-payment of dues since July 2017.

“Only about 13-odd doctors continue to be attached to the hospital. Rest have moved to other organisations,” said a doctor, adding that insolvency was declared on March 13 after which the resolution professional, Abhilash Lal, took over.

Limited services

“Now, the previous management of the hospital has no control. The hospital continues to function, but offers limited services. There are fewer admissions and fewer out-patient department (OPD) services as well,” said the doctor, who continues to be attached to Seven Hills. He said the resolution professional has ensured that all payments are honoured since his appointment. “The earlier dues will hopefully be paid once a new management takes over,” he said.

The 306-bed hospital was opened with actor Amitabh Bachchan as a brand ambassador. Aishwarya Rai Bachchan gave birth to her daughter at this hospital. The management hoped that its proximity to the international airport — just 2.5 km away — would attract medical tourists.

Didn’t go to plan

However, it failed to pick up and could never commission the 1,500 beds as projected. It managed to stay afloat by conducting bulk surgeries under the State’s Rajiv Gandhi Jeevandayi Arogya Yojna, now known as the Mahatma Jyotiba Phule Jan Arogya Yojana (MJPJAY). JP Morgan was said to be in talks with for a buyout. Meanwhile, the lenders approached the NCLT for resolution.

On December 28 last year, the 50-odd full-time doctors went on strike and only carried out emergency services. MJPJAY services were also stopped and patients had to be turned away. “The few remaining doctors called off the strike after the appointment of the resolution professional,” said a doctor.