MGM Healthcare, a Chennai-based healthcare group, has expanded its operations by acquiring the 300-bed SevenHills Hospital in Visakhapatnam.

This move is part of the corporate insolvency resolution process of SevenHills Healthcare and signifies a significant growth for MGM, bringing their total capacity to over 1,000 beds within five years of launching its first hospital.

The resolution plan for the acquisition, valued at Rs1.71bn ($20m), includes Rs18m for capital expenditure and working capital for the newly acquired facility. Despite competition from two other bidders, MGM Healthcare's proposal received unanimous approval from the committee of creditors during their 47th meeting.

SevenHills Hospital has reported revenue exceeding Rs1bn in the financial year 2024.

MGM Healthcare director Prashanth Rajagopalan said, "MGM Healthcare’s strategic acquisition of SevenHills Hospital marks our first foray outside Chennai and is a milestone in our vision of expanding access to quality, affordable, and personalised healthcare."

He further added, "By joining forces with SevenHills, a respected institution with a deep-rooted legacy in Visakhapatnam, we're poised to serve patients in Vizag and from the neighbouring states of Telangana, Odisha, and Chhattisgarh."

The acquired hospital not only provides healthcare services but also houses a nursing college and training facility accredited by the Government of Andhra Pradesh. It is also recognised by the National Board of Examinations to run Diplomate in National Board programmes in anaesthesiology and general surgery.

Ernst & Young was the advisory partner for MGM Healthcare in this acquisition process.

This growth follows MGM Healthcare's previous acquisition of Fortis Malar Hospital in Chennai from Fortis Healthcare for approximately ₹1.28bn ($15.36m) in November of the previous year.