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Krishna Institute of Medical Sciences (KIMS) has entered into an Operation & Management Agreement with Aurevia Hospitals

ICICIdirect Research 21 Aug 2026 DISCLAIMER

News: Krishna Institute of Medical Sciences (KIMS) has entered into an Operation & Management Agreement with Aurevia Hospitals Pvt Ltd to become the exclusive operator of the 250-bed Arete Hospital in Gachibowli, Hyderabad. Aurevia Hospitals, formerly Golden Lan Solution Pvt Ltd, acquired the hospital business of Arete Hospitals through a Business Transfer Agreement dated July 3, 2026. Under the proposed O&M arrangement, KIMS will manage, operate, direct and control the hospital and provide medical services, while earning a fee equivalent to 9% of the hospital’s total net revenue. 

View:  This transaction falls in-line with the strategy of KIMS hospitals of asset-light expansion starting with an O&M agreement with an exercisable call option to further take control of the hospital. However, the option is not an obligation and the eventual acquisition terms/pricing have not been disclosed, so the near-term impact should primarily be assessed through the hospital’s ramp-up and revenue contribution. We continue to keep a tab on the expansion strategy of KIMS.

Impact: Positive

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