Expect private hospital chains to invest Rs 32,000 crore, add over 30,000 beds in 4-5 years: Icra

Private hospital chains are expected to 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 percent 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.