Private hospital chains are expected add over 30,000 beds at an investment of Rs 32,500 crore in the country over the next four to five years, rating agency Icra said on Wednesday.
It expects the aggregate occupancy for its sample set companies to remain healthy at 64-65 per cent in FY24 backed by sustained healthy demand for healthcare services, continued market share gains for organised players and revival in medical tourism after the pandemic.
"Overall, most private players are expected to add over 30,000 beds in the next four to five years at an investment of Rs 32,500 crore," ICRA Assistant Vice President & Sector Head Mythri Macherla said.
Metro cities are expected to remain focal points for this capacity expansion, she added.
Centres such as Delhi-NCR, Mumbai, and Bengaluru are expected to witness sizeable bed additions in the next few years, Mythri said.
In addition to setting up new greenfield and brownfield facilities to enhance their capacities, hospital chains are also looking at inorganic opportunities, which have led to increasing consolidation in the industry in the last two years.
Mergers and acquisitions aid hospital chains in diversifying their geographic reach and/or speciality mix in addition to increasing their scale of operations.
Mythri moted that to overcome the impact of inflation, hospitals have employed cost optimisation measures such as consolidation of suppliers and centralised procurement to enable rationalisation of consumables cost.
Led by continued demand for elective surgeries, higher preference for large hospital players aided by increasing insurance penetration, the rising incidence of non-communicable lifestyle diseases, and higher medical tourism volumes, industry players have been witnessing incremental demand, she added.