Sabara Hospital Invests R$1.1bn for Major Expansion and Upgrades

05 Jun, 2024

Sabara Hospital Invests R$1.1bn for Major Expansion and Upgrades

Running counter to the sector, which has been reducing investment in pediatric care due to its high costs and low compensation, Sabara is expanding. The children’s hospital, owned by pediatrician and philanthropist Jose Luis Egydio Setubal, is doubling in size. This expansion includes a new unit, renovating the existing tower, and expanding free care, teaching, and research in pediatrics, requiring investments of around R$1.1 billion by 2028.

The funds come from a 2017 endowment with R$370 million in cash and real-estate asset manager Tellus. Founded in 1962, Sabara became non-profit in 2005, receiving R$100 million for a revamp. The new unit will have 210 beds and 12 operating rooms, requiring R$800 million, half from Sabará's funds for medical equipment and half from Tellus for construction.

Tellus, which intended to build an office and residential complex, partnered with Sabara after a 2021 agreement. The expansion includes research, open courses, medical residency programs, free healthcare, and public policy studies. Sabará's social arm, Pensi Institute, provides 10,000 appointments annually to public healthcare patients.

The hospital ended last year with R$505 million in revenue and R$95 million EBITDA. Due to high pediatric care demand, Sabara's occupancy rate is 85%, with long waiting times for specialized appointments. This expansion addresses the shortage of pediatric specialists and private children's hospitals in Brazil.