Why private equity cos are increasingly investing in single-speciality hospitals

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Subscribe to enjoy similar stories. Mumbai: Delhi resident Harsha Singh, 31, often visits her family in the city of Mughalsarai, Uttar Pradesh, near Varanasi. That gives her an opportunity to visit Anand Netralaya, a standalone, single-specialty eye hospital.

“I go to Anand Netralaya for all my eye work, like getting my power checked," she told Mint. Singh has an incentive to do so; her cousin, an ophthalmologist, runs the place. But, Singh adds, many Mughalsarai residents prefer Anand Netralaya over the local government hospital for eye checkups and surgeries, even though it is more expensive.

“Anand Netralaya has better facilities, including lifts and wheelchairs for patients," she explains. “I think when it comes to surgeries, especially for something sensitive like eyes, anyone who can afford to will pay a little more." Like Singh and the people of Mughalsarai, many patients today are showing a marked preference for treatment in a single-speciality hospital, even in tier-II cities and smaller towns. While large hospitals have multiple specialties, including cardiology, neurology, paediatrics, dermatology and psychiatry, single-speciality or super-speciality hospitals focus on a specific field such as fertility, gynaecology, paediatrics, ophthalmology, or oncology.

For instance, gynaecology hospital chain Cloudnine exclusively treats pregnant women; ophthalmology chain Laxmi Eye Care is dedicated to patients with ocular issues. “Most single-speciality hospitals are generally started/owned by specialist doctors who have built a high market reputation over years of practice in a certain region," Visalakshi Chandramouli, managing partner of Tata Capital Healthcare Fund, explained. Patients have been flocking these