ET Analysis: Indian hospital chains report revenue growth & expansion plans amidst regulatory concerns

economictimes.indiatimes.com:

Apollo Hospitals, Fortis Healthcare, Max Healthcare, Narayana Hrudayalaya (NHL) and Aster DM Healthcare — have reported an increase in average revenue per operating bed (ARPOB), improved operational efficiency and capex plans to expand. Here are the key takeaways from their performance in the latest quarter through March:

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Rising ARPOB: The hospital chains have improved their average revenues per operating bed during the quarter aided by a better payer mix — more insured and self-paying patients and less business from institutions and government schemes. Improvement in occupancy rates also aided ARPOB. Hospital chains are introducing more niche specialities, quaternary care facilities and robotic surgeries to drive better ARPOB.
Improving profitability: Improving ARPOB, focus on network profitability, asset-light model and cost control measures have helped chains enhance overall profitability. Fortis Healthcare has posted a 170-basis-point increase in hospital margins in FY24, aided by improving case and payer mix and cost rationalisation initiatives. It reduced net debt from ₹340 crore at the end of FY23 to ₹264 crore as of March 31, 2024. In the case of NHL, operational efficiencies and digital initiatives have improved profitability and driven revenues. Apollo Hospitals has guided margin expansion in the hospital segment to 25% in FY25, helped by cost optimisation and increased surgical volumes.

Mixed performance of