US-based private investment equity firm TPG Capital has plans to continue scouting for other hospital assets in India, after Medanta deal fell through.

In 2015, TPG invested about $146m to acquire 22% stake in Manipal Education & Medical Group .

TPG Capital Asia managing director Mitesh Daga was quoted by as saying: “In the last four years, we built a very strong management team in Manipal, which has a lot of bandwidth. We have institutionalised a lot of processes. Now, we can really create a lot of operating leverage by doing some inorganic acquisitions. We are open to standalone hospitals and regional chains.”

Last October, Manipal, TPG and Temasek entered into talks with Medanta chairman Naresh Trehan, besides other investors, to purchase their stakes in Manipal Hospitals for around Rs5.8bn. However, this deal fell through.

Manipal was also competing to acquire Fortis Healthcare . However, Malaysia-based IHH Healthcare outbid its competitors to acquire the healthcare provider.

Currently, Manipal owns 10 multi-speciality hospitals, five teaching hospitals and several fertility clinics.

Daga expects economic slowdown to lead to consolidation of the healthcare industry.

Daga added: “(Last) couple of years have been tough for the hospital sector with the regulatory headwinds, especially the pricing caps, etc. This will weed out smaller operators and those who are inefficiently running operations, and eventually lead to consolidation. But it will happen gradually, it won’t happen overnight.”