Indian Economy News

Top Indian private hospital chains announce major expansion in FY25

India's leading private hospital chains have revealed their expansion plans for FY25 following a notable increase in the average revenue per occupied bed (ARPOB) per day during FY24, indicating growing demand for their services. Max Healthcare anticipates significant capacity additions this financial year, with plans to add 300 operational beds in Dwarka by June 2024, along with expanding bed capacity at their Lucknow and Nagpur units by December. Similarly, Fortis Healthcare aims to add approximately 700 beds. In comparison, Apollo Hospitals Enterprise plans to add 1,170 beds in FY25, as disclosed in its fourth quarter of FY24 investor presentation. The surge in bed capacity expansion aligns with hospitals reporting growth in ARPOB figures for FY24, with analysts forecasting a further 5-6% increase in ARPOB per day for FY25.

For the entire FY24 period, Max Healthcare recorded a 12% increase in ARPOB figures, reaching US$ 910.16 (Rs. 76,000) per bed per day, up from US$ 802.38 (Rs. 67,000) in FY23. Similarly, Apollo Hospitals Enterprise and Fortis Healthcare also reported growth in their ARPOB figures for FY24, with year-on-year increases of 11.3% at US$ 688.47 (Rs. 57,488) and 10.7% at US$ 729.17 (Rs. 60,887), respectively. Analysts attribute this growth to improving specialty and case mix, better payer mix, and a healthy recovery in the footfall of international patients. The increase in ARPOB is also linked to higher surgical volumes and an uptick in high-end procedures, indicating a positive trend in the healthcare sector. Furthermore, price revisions and increased revenue from international and upcountry patients have improved ARPOB, reflecting a robust performance amidst ongoing challenges in the healthcare landscape.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.