In pvt healthcare's rise, price points are a big pain
In India, the rapid growth of private healthcare has been accompanied by concerns over exorbitant pricing. A parliamentary committee's report highlights the need for better public facilities, capped fees, and more medical specialists to make quality care more affordable. Leading private hospital chains, such as Apollo and Max Healthcare, argue that blanket price caps could stifle growth and investment.
Over the past three years, nearly 60 hospital-linked private equity deals have been signed, with values exceeding ₹49,000 crore. In 1983, Apollo Hospitals founder Prathap Reddy set up India's first corporate hospital in Chennai, breaking new ground in the country's healthcare industry. Today, private hospitals account for 58% of hospitalizations in rural India and 64.6% in urban centers.
The trend of private equity investment in healthcare has also been driven by a rise in the average revenue per bed, which grew by 11% to ₹56,520 in FY25 from ₹50,821 in FY23. Healthcare investors, such as Temasek and KKR, have taken majority stakes in top-tier hospital groups, leading to concerns about affordability for most of the population.
Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
