After being asked to vacate premises, Fortis Healthcare seeks legal action against NMMC order

After being asked to vacate premises, Fortis Hospital seeks legal action against NMMC order
Representational Image. Courtesy: credihealth.com

Two days after being asked to vacate the hospital premises, Fortis Healthcare on Friday said it is considering legal options against the Navi Mumbai Municipal Corporation (NMMC) order.

On Wednesday, the NMMC terminated its agreement with Hiranandani Healthcare Pvt Ltd (HHPL) and asked it had hand over possession of its premises within a month’s time. The facility occupied two floors within the NMMC hospital.

NMMC Commissioner Tukaram Mundhe also directed HHPL not to admit new patients from the date the order was issued.

“One of the company’s facility (hospital) operated and controlled by one of the subsidiary Hiranandani Healthcare Pvt Ltd has received an order on January 18, 2017 from Navi Mumbai Municipal Corporation (NMMC) to vacate the premises within one month,” Fortis Healthcare said in a filing to BSE.

The management of the HHPL and the company are evaluating all possible legal remedies available including challenging the said order of NMMC with appropriate authority, it added.

During a site inspection conducted by the civic body in September, it was found that even though they had entered into an agreement with HHPL for super-speciality services, more than 50 percent patients were receiving non-speciality treatment on chargeable basis.

NMMC had entered into an agreement with HHPL as it did not have the expertise to provide super speciality facilities.

According to one report, NMMC terminated the agreement with HHPL on three grounds – failure to operate a purely super-speciality hospital, indirect transfer and assignment of obligation and duties to Fortis Healthcare Ltd and displaying the name ‘Fortis’ instead of ‘Hiranandani’ hospital at prominent places.

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