Krishna Institute of Medical Sciences Ltd (KIMS) has entered into an Operations and Management (O&M) Agreement with Aurevia Hospitals Private Ltd to exclusively operate and manage the 250-bed Arete Hospital in Gachibowli, Hyderabad. According to reports from CNBC TV18, the agreement has an initial term of five years with an extension option for a further five years. Under the partnership, KIMS will run, manage, operate, direct and control the hospital and provide or facilitate medical services. The agreement, effective from August 20, 2026, marks KIMS' intention to manage, operate, and control the Arete hospital, allowing the company to provide its medical services at the facility.
In consideration for the medical services, KIMS will receive a revenue fee of 9% of the hospital's net revenue. As reported by CNBC TV18, net revenue is defined as gross revenue billed to patients, less concessions and discounts offered to patients. The agreement provides KIMS with exclusive supervision and control of the hospital, making it solely responsible for proper operation and management. Under the terms of the O&M Agreement, KIMS will oversee the operations of the Arete hospital for an initial period of 5 years, with an option for a further 5-year extension.
KIMS has also entered into a Call Option Agreement with Aurevia Hospitals, giving KIMS the option to acquire the business if found suitable, subject to terms and conditions and price to be agreed in definitive documents. According to CNBC TV18, this agreement grants KIMS the option, but not the obligation, to acquire the hospital business in the future. The potential acquisition would be subject to specific terms and conditions, and at a price to be determined in definitive documents. This dual agreement underscores KIMS' strategic interest in expanding its footprint and operational control within the healthcare sector.
Arete Hospital is a multispecialty facility located in Gachibowli, Hyderabad, in the Cyberabad software and information technology hub. As reported by CNBC TV18, the facility provides primary, secondary and tertiary care across various medical and surgical specialties and has an operational capacity of approximately 250 beds. Aurevia Hospitals, formerly known as Golden Lan Solution Private Ltd, acquired the hospital business through a Business Transfer Agreement dated July 3, 2026. The Arete hospital, situated in a prominent IT hub, aims to cater to the growing demand for comprehensive healthcare services, offering primary, secondary, and tertiary care across various medical and surgical specialties.
Shares of Krishna Institute of Medical Sciences Ltd ended at ₹788.00, down by ₹0.60, or 0.076% on the BSE following the announcement. According to CNBC TV18, the Operations and Management Agreement and Call Option Agreement were entered into on August 20, 2026. KIMS is one of the largest corporate healthcare groups in Andhra Pradesh and Telangana in terms of the number of patients treated and treatments offered, offering comprehensive healthcare services across over 25 specialties and super specialties. Aurevia Hospitals Private Limited, previously Golden Lan Solution Private Limited, is a company incorporated under the Companies Act, 2013, with its registered office in Hyderabad, Telangana.
