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Dear Shekhar Gupta, You Are Wrong On Facts And AAP Is Right

On Dec 8, 2017, the Delhi Govt canceled the license of Max Hospital after the hospital declared a living baby dead. 

Delhi AAP is right
Shekhar Gupta is wrong on facts

Here is a point by point refutation of  facts as claimed by Shekar Gupta

Alternate facts in tweet True facts
“Cancelling Max license..” Only the license of the hospital that declared the baby dead was canceled. Not all hospitals operating under the Max brand name have been canceled.
“Instead of punishing the guilty” Max Hospital, Shalimar Bagh was found guilty of criminal negligence as per the DGHS inquiry report. The license was canceled.    
“Hurts 100s of innocent employees” No basis provided. A corporate cannot be licensed to do wrong for the fear that employees “will be hurt”
“Hurts …..patients with ongoing treatment” Incorrect assertion. Delhi Govt’s order allows the hospital to carry out treatments to patients current at the time of the order
“Hurts ….Minority shareholders” Max India, which has minority shareholders, is in fact, about 45% minority owner of the company* under which the 250 bedded Shalimar Bagh hospital operates. As on 30 Sept 2017, there were 2,369 beds with about a 74% occupancy**. So the total beds affected were just about 10.6%, much less than the spare capacity available to Max network of hospitals for referring willing patients elsewhere. Assuming 50% of such patients can be transferred, the revenue impact is about 2.6%, and earnings loss to minority shareholders will be lower as some costs will be shared across all beds. Thus there is no material earnings loss to minority shareholders.   

Source:

*Per FY 2017 annual report

**Per Sept 30, 2017 investor presentation

The author Krishnaraj V is a security analyst & investor based out of Bangalore.

Delhi AAP is right
Shekhar Gupta is wrong on facts


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Dear Shekhar Gupta, You Are Wrong On Facts And AAP Is Right

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