Private Hospitals Expected to Increase Bed Capacity by 30,000 Over the Next 5 Years: ICRA

In its latest report outlining industry trends and projections for the financial year 2024, rating agency ICRA has painted a positive picture for the Indian hospital industry. The analysis points towards a stable outlook, with expectations of increased capacity building and occupancy contributing to a year-on-year (YoY) revenue growth ranging from 12 to 14 percent in FY24. This projection represents a moderate shift compared to the 17 percent YoY revenue growth witnessed in FY23 among the sample set of companies considered by ICRA.

Addressing the upward trajectory in capacity building within private hospitals, Mythri Macherla, Assistant Vice President and Sector Head at ICRA, highlighted the industry's substantial commitment to expanding its infrastructure. The comprehensive industry outlook suggests that most private players, including those in ICRA's sample set of companies, are gearing up to add more than 30,000 beds over the next four to five years. The anticipated investment for this expansion is estimated to be around Rs. 32,500 crore.

The strategic move towards increasing bed capacity aligns with the industry's response to growing healthcare demands and signifies a commitment to enhancing healthcare infrastructure in the country. ICRA's report underscores the positive trajectory and long-term growth potential within the Indian hospital sector, driven by substantial investments in capacity expansion and the evolving healthcare landscape.

BS