AIG Hospitals lays foundation for 1,000-bed multi-specialty healthcare campus in Vizag

In September 2026, AIG Hospitals laid the foundation stone for a new, greenfield multi-specialty hospital in Visakhapatnam, to be operational by October 2028. The foundation stone was laid by Nara Lokesh, Minister for Human Resource Development, Information Technology, Electronics and Communications and Real Time Governance, Government of Andhra Pradesh.

The ceremony was attended by Ayyannapatrudu Chintakayala, Speaker, Andhra Pradesh Legislative Assembly, Bharat Muthukumilli, Member of Parliament, Visakhapatnam; and Ganta Srinivasa Rao, Member of the Legislative Assembly, Bheemili.

The facility is set to be built in two phases comprising the main hospital campus and an adjoining nursing college. Phase 1, comprising Towers A and B with 650 beds, is expected to be operational by October 2028. Phase 2 will add a further 350 beds in Tower C, over the following two to three years, taking the campus to 1,000 beds. Beyond clinical services, the campus will house a Nursing College, a paramedic training center, a research laboratory, an AI center, and a 500-seater academic auditorium. There will also be provision for hostel accommodation for nursing staff, accommodation for visiting faculty, and low-cost accommodation for patients’ families. At full operation, the facility is expected to employ approximately 9,000 people and have 1,000 doctors on its rolls.

The foundation stone was laid on Monday by Minister for Human Resource Development, Information Technology, Electronics and Communications, and Real Time Governance, Nara Lokesh. Assembly Speaker Chintakayala Ayyannapatrudu, Visakhapatnam MP M Bharat, and Bheemili MLA Ganta Srinivasa Rao were among those present at the event.

Impact on the Healthcare Market

The hospital will feature over 50 medical and surgical specialties, equipped with modern infrastructure such as modular operating rooms, the latest cath labs, advanced endoscopy suites, 150 fully equipped critical care beds, and a 50-bed emergency department. The outpatient block is designed to accommodate approximately 5,000 consultations daily. A dedicated Mother and Child block with 120 beds, including a 15-bed neonatal intensive care unit, birthing suites, and pediatric services, will also be part of the campus. The outpatient department aims to handle up to 5,000 consultations each day.

Hospital officials also state that the campus will offer hostel facilities for nursing students and staff, residential units for visiting faculty, and cost-effective accommodation for patients’ attendants. When fully operational, the project is projected to employ around 9,000 staff members and nearly 1,000 doctors, establishing itself as a significant healthcare and employment hub for north coastal Andhra Pradesh.

Impact on the Medical Bed Market

The global medical bed market size is valued at USD 43.48 billion in 2025 and is predicted to increase from USD 49.03 billion in 2026 to approximately USD 147.39 billion by 2035, expanding at a CAGR of 12.98% from 2026 to 2035.

According to Precedence Research, the frequency of chronic illnesses is increasing, and consumers are becoming more interested in hospital beds that are well-equipped with cutting-edge features. Additionally, postoperative care and home healthcare services for the elderly population provide market participants with significant potential. The market is anticipated to increase as a result of factors like the expanding geriatric population and the prevalence of chronic illnesses worldwide. Furthermore, throughout the course of the forecast period, the market is anticipated to rise as a result of technical advancements, the adoption of medical beds, and an increase in the number of hospitals. However, it is projected that the market expansion would be hampered by the high cost of medical beds and a decline in the number of beds in public hospitals.

AI-powered smart medical beds are also helping in transforming hospital operations by automating patient monitoring, improving comfort, and easing the workload for staff. These beds utilize sensors, AI, and real-time data to improve patient care and alleviate pressure on hospital personnel. 

Impact on the Healthcare Facilities Management Market

The global healthcare facilities management market size is calculated at USD 368.8 billion in 2025 and is predicted to increase from USD 417.6 billion in 2026 to approximately USD 889.6 billion by 2035, expanding at a CAGR of 9.2% from 2026 to 2035. 

According to Precedence Research, energy-fueled building systems and supportive eco-friendly solutions are accelerating in the healthcare sector due to growing utility and energy prices. The specialized, effective facility service deals are elevating the value of the market. Whereas, the emerging advancements in healthcare are ultimately paving the way for job opportunities. Growing focus on health and wellness will infuse more facets of business and private life during the coming years. The healthcare facility management market is observing a change in technology to advance facility monitoring, efficiency, and cost-effectiveness. 

The emerging regulatory standards due to growing hygiene and safety concerns are also further enabling new sustainable advances into the public health system. In contrast, monitoring and infrastructure maintenance are also general requirements for responsible sectors such as healthcare. The expansion of outsourcing by clinics and hospitals of non-clinical activities marks a valuable hygiene effort. The unification of AI and IoT is further combating tech facility, empowering the market in several ways. 

Expert Opinion

Dr D Nageshwar Reddy, Chairman, AIG Hospitals, said 

“Over three decades, what we learned at AIG is that clinical excellence can only thrive when it is complemented by continuous academic activities and backed by research. That is why the research laboratory and the academic block are not additions to this project; they are part of its structure from the beginning. Our intention in Visakhapatnam is to build the whole ecosystem and make it future-ready.”