Indian hospitals have attracted investments amounting to Rs 27,000 crore within two years

according to the findings of ICRA. The healthcare services sector within the country is currently observing consistent demand, and organized players are witnessing an expansion in their market share.

Over the past couple of years, private equity investments in Indian hospitals have shown significant growth, collectively reaching an impressive sum of Rs 27,000 crore, a revelation presented by ICRA.

Prominent investment transactions encompass notable names like Manipal Hospitals, Sahyadri Hospitals, ASG Eye Hospital, and Maxivision Eye Hospital. An especially noteworthy instance is the substantial Rs 16,400 crore investment by Temasek to acquire a considerable stake in Manipal Health. The domain of eye care has also captured the interest of private equity investors, resulting in approximately Rs 4,000 crore being infused into these hospitals recently.

Furthermore, Kedara Capital's acquisition of Sreyas Holistic Remedies' Olivia skin and hair clinic at a value of $65 million (equivalent to Rs 540 crore) and Mumbai Oncocare Centre's successful procurement of $10 million (equivalent to Rs 83 crore) through Series A funding from Tata Capital Healthcare Fund are noteworthy financial feats within this sector.

The impact of the post-Covid era on the Indian healthcare landscape has led to a visible trend of consolidation. This shift is largely attributed to patient preferences leaning towards superior quality healthcare services. A considerable number of standalone hospitals are opting to become part of larger networks, ultimately contributing to an overall consolidation of the industry. The pandemic prompted Manipal to make acquisitions, including Columbia Asia Hospital and Vikram Hospital.

ICRA's forecast for the Indian hospital industry indicates robust demand for healthcare services. The anticipated revenue growth for the fiscal year 2024 is between 8% and 10%, coupled with a projected operating profit margin ranging from 22% to 23%. Concurrently, there are ongoing expansion initiatives that involve the addition of more than 8,400 beds and facility enhancements over the next four years.

The predicted occupancy rates for FY2024 are expected to remain robust, hovering between 63% and 65%. An estimated rise in average revenue per bed, ranging from 5% to 7%, can be attributed to multiple factors, including the surge in non-communicable diseases, an increase in individual healthcare expenditure, wider health insurance coverage, and an uptick in medical tourism activities.

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Writer: Chintu nath