Sri Lanka’s Melstacorp acquires Browns Hospital Ragama for Rs.1.6bn
ECONOMYNEXT- A subsidiary of Melstacorp Plc acquired a Ragama-based hospital from Brown & Company Plc for 1.6 billion rupees on February 9, a statement said.
Melsta Healthcare Colombo (Pvt) Ltd bought the entire shareholding of Browns Health Care which operates a multispecialty hospital in Ragama, north of the capital Colombo, under the ‘Browns Hospitals’ brand.
The hospital, opened in 2015 with 70 beds, and the Browns Group initially had plans to expand into a chain with a second hospital in Colombo.
In the 2018/19 annual report of Brown & Company said the regulatory environment had become ‘increasingly challenging’ with price controls on drugs, medical tests, room rates and charges for basic procedures, and the industry is facing a shortage in staff.
Melstacorp is highly diversified, with operations in liquor making, plantations, telecom, (Colombo/Feb21/2020)