Private hospitals to add 4,000 more beds in India by next fiscal: Report
Private hospitals are expected to invest Rs 11,500 crore, after an aggressive addition of around 6,000 beds this fiscal
Hyderabad: Private health sector is set to further expand with a recent analysis by Crisil Ratings indicating that corporate hospitals in India will increase their capacity by adding nearly 4,000 beds in the next fiscal.
Private hospitals are expected to invest Rs 11,500 crore, after an aggressive addition of around 6,000 beds this fiscal. The bed addition in just these two fiscals will equal those added between fiscals 2020 and 2024, Crisil said. The Crisil Ratings analyzed 91 private hospitals, which had a combined revenue of about Rs 64,000 crore last fiscal.
“Private hospitals account for 63 percent of the sectoral revenue in India. Over 2020-2024, private hospitals clocked a compound annual growth rate of 18 percent in revenue and healthy operating profitability of 18 percent, ensuring strong cash flow,” the report said.
Anuj Sethi, Senior Director, Crisil Ratings, “With occupancy close to the peak of 65-70 percent and continued demand for quality healthcare, private hospitals are investing Rs 25,000 crore this fiscal and the next, nearly 80 percent higher than the average annual investment in the previous four fiscals”.
Half of the new beds will come from greenfield expansions, highlighting significant investment in new healthcare infrastructure. About 40 percent will comprise brownfield development, focusing on modernizing existing facilities. The remaining 10 percent will result from large players taking over under-construction hospitals and small and mid-sized hospitals, reinforcing organic growth efforts, Naren Kartic.K, Associate Director, Crisil Ratings said.
