Panacea Biotec Ltd, a leading health management company has forayed into healthcare delivery by way of entering into collaboration to set-up 220 bed multi specialty hospital in National Capital Region of Delhi at Gurgaon.

For delivering the same, the company has entered into collaboration with Dr Umesh Gupta of Umkal Group for the hospital.

Under the deal, the company has acquired majority stake in Umkal Medical Institute Pvt. Ltd (UMI), for this venture.

Further, the company has signed a Shareholders' agreement with the existing shareholders of UMI and has agreed to make investment towards its equity contribution.

The hospital is proposed to be 220 bed super-specialty hospital, which would be built in the heart of prime, high potential area of Gurgaon surrounded by resident area, business establishments, shopping malls and industrial houses.

The total project cost would be funded by a mix of debt and equity and the hospital is expected to start functioning by January 2010.