Narayana Health is taking its low-cost, high-volume cardiac care model to the UK following its acquisition of Practice Plus Group, the country’s fifth-largest private hospital services provider. The Bengaluru-based hospital chain acquired the company for about Rs 2,200 crore, aiming to support the UK’s National Health Service (NHS) in reducing surgical backlogs while expanding its international footprint.
The acquisition provides Narayana Health access to a market where most of Practice Plus Group’s revenue is derived from NHS contracts, offering stable cash flows alongside operational challenges such as long waiting periods for elective procedures. The company plans to introduce standardised protocols, digitisation, and process efficiencies to improve capacity utilisation without compromising quality.
The UK deal, valued at GBP 190 million, has been financed through a mix of structured debt and equity. Management expects the debt to be repaid over the next five to six years, supported by operational improvements and a gradual increase in higher-margin private-pay patients.
Narayana Health sees potential to replicate its model in other markets facing rising healthcare costs and ageing populations. At the same time, the company continues to pursue measured expansion in India, focusing on selective capacity additions rather than rapid scale-up.