Private Hospital Sector in India 2021

admin — Thu, 16 Dec 2021 02:24:24 +0000

Private Hospital Sector in India

Market insights:
Hospitals are the major stakeholders in India’s healthcare ecosystem. About 70% of the rural population and 80% of the urban residents rely on private hospitals. High disposable income, rise in population, and changes in disease profiles are driving the expansion of the market. Furthermore, the Ayushman Bharat initiative has strengthened the healthcare system, from primary to tertiary care.

The private hospital sector was valued at INR 9,995.06 Bn in FY 2021. It is expected to reach INR 25,429.49 Bn by FY 2027, expanding at a compound annual growth rate (CAGR) of ~20.53% during the FY 2021 ─ FY 2027 period

Segment insights:
It has three segments – self-pay, government payer, and corporate insurer. Initially at the beginning of 2020, the self-pay segment dominated the market, followed by government payer. However, owing to the expansion of insurance coverage by both government and corporate insurers, the corporate insurer segment is anticipated to experience noticeable growth.

Increase in purchasing power, growing demand for quality healthcare, technological advancements, and development of private hospital networks have fueled the growth of corporate medical insurance. It ensures patients’ entitlement to accidental hospitalization, COVID-19 insurance, daily hospital benefits, critical illness cover, and maternity coverage.

Impact of COVID-19:
The second wave of COVID-19 affected the private hospital sector because patient footfall, both, domestic and international, declined. High infection rates and lockdowns compelled hospitals to pause non-emergency, and outdoor patient department (OPD) and indoor patient department (IPD) services. Medical tourism also declined due to travel restrictions.

Despite the initial dip in footfall, signs of recovery in patients and relaxed lockdown norms by the end of July 2021 marked an increase in hospital occupancy rate. Although the initial setback caused a nationwide crisis in India’s primary healthcare, key changes in the sector such as flexibility in operations, improved health insurance, and cost-effective medical tourism will strengthen the private hospital sector.

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The post Private Hospital Sector in India 2021 first appeared on CRI Report.

Private Hospital Sector in India 2020

admin — Mon, 04 Jan 2021 05:20:33 +0000

Market insights
Private hospitals play a pivotal role in the healthcare industry, providing healthcare services to more than 70% rural population and 80% urban population in India. In terms of revenue, the private hospital sector in India was valued at INR 7,557.84 Bn in 2019, and is estimated to reach INR 18,315.96 Bn by 2025, expanding at a compound annual growth rate (CAGR) of ~16.18% during the 2020-2025 period.
Segment insights:
The private hospital sector in India is segmented into self-pay, government payer, and corporate insurer. The self-pay segment was the largest in 2019, accounting for ~47.00% share of the overall market revenue. Corporate insurer is estimated to be the fastest-growing segment of the market, expanding at a CAGR of 21.47% during the 2020-2025 period.
Increased public healthcare expenditure has resulted in the growth of the government payer segment. The penetration of medical insurance by corporate entities is likely to drive the corporate insurer segment. A rise in purchasing power, higher demand for quality healthcare, and expansion of the private hospital chain network has propelled the growth of corporate medical insurance.
Market insights:
Factors such as increased income, a rise in geriatric population, and an evolving disease profile have contributed to the sector’s growth. The life expectancy of Indians has increased considerably, inciting more demand for healthcare services from the elderly population suffering from various degenerative diseases. On the other hand, the country experienced an epidemiological transition in the past few decades, with the shift from communicable to non-communicable diseases. The growing burden of lifestyle diseases has attracted demand for healthcare services from the private hospital sector. Furthermore, India’s emergence as a preferred destination for medical tourists has stimulated the private hospital sector’s growth.
The sector encounters several restraining factors such as financial constraints, regulatory hurdles, and lack of skilled medical professionals. The market is highly capital intensive with a low and delayed return on investments. The sector faces financial challenges owing to reduced profit margin and a surge in operating expenditure. Furthermore, regulatory headwinds and the shortage of experienced healthcare professionals result in significant challenge for market players.
Impact of COVID-19:
The pandemic has disrupted the private hospital sector in India, negatively impacting patient footfall, hospital occupancy rate, and revenue. Various private hospitals have paused operations in the non-emergency and outdoor patient department (OPD) due to lockdown and fear of infection. The cancellation of elective surgeries and a sharp drop in the arrival of medical tourists led to poor revenue generation from indoor patient department (IPD) services.
The decline in patient footfall in OPD and patient admission in IPD had intensified the financial distress of the private hospital sector, which was already burdened with low-profit margin and high costs. According to the Federation of Indian Chambers of Commerce and Industry (FICCI), the sector witnessed a drop in revenue of around 50% and a fall in EBITDA by nearly 60%, in the last week of March 2020.
Companies covered
• Apollo Hospitals Enterprise Ltd
• Aster DM Healthcare Ltd.
• Fortis Healthcare Ltd.
• HealthCare Global Enterprises Ltd.
• Max Healthcare Institute Ltd.
• Narayana Hrudayalaya Ltd.
• Shalby Ltd.
• Columbia Asia Hospitals Pvt. Ltd.
• Manipal Health Enterprises Pvt. Ltd.
• Medanta The Medicity

The post Private Hospital Sector in India 2020 first appeared on CRI Report.

Private Hospital Sector – CRI Report

Private Hospital Sector in India 2021

Private Hospital Sector in India

Private Hospital Sector in India 2020