Hospital consulting for acquisition of a large hospital in Mumbai

Case Summary

Camomile advised a leading global investment bank on the acquisition of a majority stake in a leading private hospital chain in India. We evaluated the infrastructure, business performance, potential, risks and threats to create a comprehensive Go-No Go for our client.

The hospital was acquired and is now an important part of our client’s portfolio in India.


One of the top 3 banks in the world with assets under management of over US$ 2 trillion was looking to acquire a majority stake in a hospital with ~2,000 bed capacity and amongst the largest private sector hospitals in India.

Camomile’s role as their hospital consultant was to assist in the acquisition process by conducting a thorough assessment of the facility, evaluating business prospects, highlighting key issues and estimating the capital expenditure.

Our work and process

Camomile formed a multi-functional team of experts consisting of hospital finance specialists, architects, engineering services specialists, equipment specialists and others. A comprehensive due diligence exercise was undertaken to assess the hospital. The following were the key work activities,

The focus areas included

  • Key departments and their operating processes
  • Clinician mix and their practice
  • Case mix and ARPOB
  • Hospital infrastructure and facility design review
  • Medical equipment review
  • Other key parameters

In addition to the above, patient safety and hospital compliances were one of the key focus areas. All compliances related to national and state level regulations were studied and corrective interventions were suggested. This included infrastructure related approvals, clinical practice approvals, equipment related approvals and land and building related compliances.

The final output

The findings and recommendations from the due diligence process including business review, HR and clinicians review, hospital infrastructure, building compliances, medical equipment, MEP services were summarized and presented. Our work enabled the client to estimate the fair value of the asset, proceed with the investment and manage the turnaround of the hospital.

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