MUMBAI: Major private hospital chains, including Fortis Healthcare and Apollo Hospitals, have bounced back with a robust 23% revenue growth year on year (YoY), driven by higher surgeries and occupancy, after the threat of Covid dissipated over the past few months.
Buoyed by the growth, most hospital chains plan to add further beds to the network through mergers and acquisitions (M&As) or brownfield investments. Once the pandemic struck in 2020, hospitals were impacted due to deferment of elective procedures, lower occupancy and absence of medical tourism.
Fortis Healthcare has been pursuing an expansion strategy while focusing on improving operations and strengthening its balance sheet, the company’s MD & CEO Ashutosh Raghuvanshi told TOI. The company plans to grow through both brownfield and inorganic modes, with brownfield expansion alone adding 1,400beds over the next few years.
“The recent acquisition of Medeor Hospital in Manesar is part of our expansion strategy. We are also strengthening our presence in the Delhi NCR region. This apart, we have recently launched state-of-theart cath labs. We are expecting ahealthy growth in medical tourism as well,” he added.
Overall, growth in average revenue per occupied bed (ARPOB) was led by improvement in the case and payer mix, an ISec analyst said. For Apollo, the revenue growth stood at 21. 3% YoY, while the earnings before interest, taxes, depreciation and amortisation (ebitda) margin was 11. 3%.
For the diagnostics sector, non-Covid revenues continue to witness steady 11-22% growth, despite steep competitive pressure. Revenue and profits for companies including Dr Lal’s, Metropolis and Vijaya declined by 1. 4-6% YoY, on a higher Covid base in FY22. Companies plan to expand the network and in tier -2/3 towns over the next couple of months.
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