Market share gains for organised players as increasing insurance penetration, continued healthy demand for elective procedures and recovery in international patient footfalls support strong occupancy levels.
Most of the hospital companies are on expansion mode, resulting in phased supply additions over the near term, with FY2024 expected to witness addition of ~6% of their existing capacities.
Despite supply additions expected across most respondent hospital companies, 67% of them hope to maintain higher than 60% occupancy in FY2024, driven by continued healthy demand for healthcare services.
Recovery in medical tourism and better specialty and payor mix supported healthy average revenue per occupied bed (ARPOB) growth of over 10% for most of the respondent hospitals in FY2023. Given the high base, 80% of respondents expect ARPOB growth to remain lower than 10% in FY2024.
Over 70% of the respondent hospital companies expect to record double-digit revenue growth in FY2024, aided by sustained healthy occupancy and moderate growth in ARPOB.
During FY2024, operating profit margins (OPM) are likely to remain rangebound for 67% of the respondents, with improved scale of operations and continued benefit from cost optimisation measures supporting the same.
Over 50% of the respondent hospital companies indicated likely investment of more than 10% of their revenues towards capex in FY2024.
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