Monday, June 19, 2023

Hospitals will expand as business increases by 23%

 MUMBAI: After the threat of Covid dissipated over the past few months, major private hospital chains like Fortis Healthcare and Apollo Hospitals have rebounded with strong revenue growth of 23% year-over-year (YoY), driven by more surgeries and occupancy.

The majority of hospital chains intend to expand their network with additional beds through brownfield investments or mergers and acquisitions (M&As). Hospitals suffered as a result of elective procedures being delayed, lower occupancy, and the absence of medical tourism when the pandemic struck in 2020.

According to Ashutosh Raghuvanshi, the MD and CEO of Fortis Healthcare, the company has been pursuing an expansion strategy while also concentrating on strengthening its balance sheet and operations. The business intends to expand through both organic and brownfield means, with brownfield expansion alone adding 1,400 beds in the coming years.

"A component of our expansion strategy is the recent acquisition of Medeor Hospital in Manesar." Additionally, we are expanding our presence in the Delhi-NCR area. In addition, we recently opened cutting-edge catheterization labs. Additionally, we anticipate healthy growth in medical tourism,” he added.

An ISec analyst stated that an improvement in the case and payer mix was the primary driver of overall growth in average revenue per occupied bed (ARPOB). Apollo's revenue increased by 21 percent. 3% year-over-year, and an 11 percent earnings before interest, taxes, depreciation, and amortization (ebitda) margin. 3%.

Despite intense competition, non-Covid revenues in the diagnostics industry continue to grow at a steady 11-22% rate. Companies like Dr. Lal's, Metropolis, and Vijaya saw a 1 percent decline in revenue and profits. On a higher Covid base in FY22, 4-6% YoY. Over the next few months, businesses plan to expand the network and into tier -2/3 towns.

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