Ahmedabad: In 2007, Shalby Hospital was established in Prahladnagar as a major privately run healthcare center on SG Highway. At that time, the only significant hospital along the vital stretch connecting Sarkhej and the state capital Gandhinagar was the Sola Civil Hospital, which had 200 beds.
Within two decades, the 14-kilometer stretch from Prahladnagar to Vaishnodevi Circle now hosts 12 major hospitals and five to six smaller ones, collectively offering approximately 3,400 beds. This translates to roughly 240 beds per kilometer, significantly higher than the city and state averages of 50 beds per kilometer.
Unique Healthcare Ecosystem
Dr. Bharat Gadhavi, Regional Director of HCG Hospitals, described SG Highway as a unique healthcare ecosystem. He noted that in other major healthcare clusters in cities like Delhi, Mumbai, Chennai, and Hyderabad, a single major hospital dominates a specific area. For instance, AIIMS in Delhi and RGGGH in Chennai each have over 2,000 beds. India has few single hospitals with such massive infrastructure, including the Civil Hospital in Ahmedabad.
Dr. Gadhavi, who also serves as President of the Ahmedabad Hospitals and Nursing Homes Association, emphasized that the growth of SG Highway as a hub has been organic and driven by private players. He added that it is easily one of the biggest such clusters in India, where almost all major private players are present, and more are coming, such as the Adani Group.
Factors Driving Growth
Members of the medical fraternity cited multiple factors that made SG Highway a lucrative option for the healthcare industry. Until the 1990s and early 2000s, the city's healthcare system was primarily run by private nursing homes with heavy dependence on government infrastructure. In the early 2000s, the first 'corporate' hospital entered the city, introducing the concept of multiple services and specialties under one roof.
Insurance schemes by both government and private players boosted the sector, leading to the establishment of new hospitals and expansion of existing ones. However, the major push came after the COVID-19 pandemic in 2020, as citizens became more health-conscious and lifestyle-related non-communicable diseases came into sharp focus.
Market Response
Dr. Adit Desai, Managing Director of KD Hospital, stated that the phenomenon should be seen as a response to the growing market. He explained that while his hospital already had a land parcel near Vaishnodevi Circle, connectivity to Saurashtra and North Gujarat was key for most players. Before the real estate boom, the area also offered ample space for major projects at reasonable rates, while city areas were becoming saturated.
Sola Civil Hospital's current expansion will add about 500 new beds by the end of the year. Additionally, the Adani Group is planning a major foray into healthcare with a Medicity model in collaboration with Mayo Clinic, according to reports.
Demand and Supply Dynamics
Dr. Nishita Shukla, Group COO of Shalby Hospitals, noted that Shalby Hospital started with 200 beds and now has multiple campuses across the city. She described it as a matter of demand and supply and a sign of changing times. Ahmedabad has changed significantly, with SG Highway, once on the fringe of the city, now nearly in the middle due to rapid development beyond the highway and even the SP Ring Road.
She added that hospitals on SG Highway cater to these growing demographics. Hospitals like Shalby have also benefited from medical tourism, which has solidified SG Highway's status as a health hub.
