In a significant development for the medical industry, major private hospitals chains such as Fortis Healthcare and Apollo Hospitals have witnessed a remarkable 23% year-on-year (YoY) revenue growth. This substantial increase can be attributed to higher surgery rates and increased occupancy as the lingering threat of Covid-19 gradually dissipates.
These growth statistics are accompanied by 11.3% earnings before interest, taxes, depreciation, and amortization (EBITDA) margin. Meanwhile, in the diagnostics sector, non-Covid revenues maintained a steady growth rate of 11-22%, despite facing intense competitive pressures. However, companies like Dr. Lal's, Metropolis, and Vijaya experienced a slight decline in revenue and profits ranging from 1.4% to 6% YoY, primarily due to the higher base of Covid-related revenues in FY22.
When the pandemic struck in 2020, hospitals faced numerous challenges, including the postponement of elective procedures, reduced occupancy rates, and the absence of medical tourism. However, as the situation has improved in recent months, private hospitals are now experiencing a strong resurgence in business.
The revenue growth can be primarily attributed to the resumption of elective surgeries and a higher influx of patients. With the Covid-19 threat subsiding, more individuals are seeking medical care and opting for essential procedures, leading to a surge in hospital admissions.
In response to this encouraging trend, private hospital chains are planning to expand their facilities. The expansion aims to meet the growing demand for medical services and provide enhanced healthcare access to patients. By increasing their capacity, these hospitals will be better equipped to handle the rising number of surgeries and admissions, ensuring timely and quality care for all patients.
This positive development reflects the gradual recovery of the healthcare industry from the adverse impact of the pandemic. With private hospitals witnessing substantial revenue growth, there is renewed optimism for the future as they continue to play a pivotal role in meeting the healthcare needs of the population.
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