AP Med-tech Park to help build 100 multi-specialty hospitals across small towns in India

Andhra Pradesh Medical Technology Zone (AMTZ) will partner with doctor-entrepreneurs to establish green field multispecialty hospitals in 100 small towns and cities across India. With approximately 100 beds each, these hospitals will be equipped with 100% made-in-India products – from hospital beds to MRI machines, says Dr. Jitendra Sharma, founder, CEO and Managing Director, AMTZ.

The products will all be supplied by the units housed inside AMTZ.

“These are all new players, and in many cases, these are famous doctors in the locality who are grouping together to create an enterprise. So we are, in some way, creating a business model for physicians”, Dr Sharma said.

According to him, a typical 100 bed hospital will, in three shifts, have about 120 nurses, 35 to 40 doctors, including specialists, two operation theatres, one Cath Lab, One CT scan, a good laboratory, 10-bed ICU, five bed dialysis machine and about 85 beds.

The med-tech park’s role is that of an aggregator. “It is a win for the whole healthcare system. Roughly a 100 bed hospital will cost about Rs 35 – 40 crore (Rs 15 crore for the land and building, and Rs 20 crore for equipment, and Rs 5 crore as operational budget for three to four months). The cost of 100 bed hospital for us is costing about 20 crore. For the equipment alone, there is a 55% cost reduction because made in India products are cheaper that imported ones. Over all, its going to be a Rs 5000 crore projects where 10,000 hospital beds will get added across the country at the same time”, Dr Sharma said.

“We have created financing mechanism for real estate enterprises to create the building and give it on rent to the private hospital. The hospitals can manage the rent from the revenue. They don't have to pay upfront for capital equipment. It is again, EMI finance, It's an asset light model for medical entrepreneurs, a model where they are not the owner of the land, they are not the owner of the building, they are not the owner of the equipment, yet they are owners of the hospital and the operations. It's a very unique model”, Dr Sharma explained.

Incidentally, the first hospital is coming up inside the med-tech park itself. The hospital is likely to be inaugurated on April 7, 2026, the World Health Day. “We are hoping to make the 100 hospital announcement also on that day, and then it will take about a year and a half, for all of them to come up.  We will release the entire list in about four months as our final round of EOI with partners is ongoing.

This will prove that an entire hospital can be operated using made in India medical products in which companies collaborate, not just compete”, he said.

The 270 acre AMTZ is India’s largest med-tech park situated in Visakhapatanam. It houses around 165 companies and has space for another 30-40 more units.