Getting It Right
Healthcare Radius|October 2018

A guide to choosing the ideal bed strength and built up area for a hospital project

Rita Dutta
Getting It Right

Columbia Asia Hospitals downed the shutters of its 100-bed hospital in Ahmedabad this September, as the project had been incurring high losses ever since its inception. The hospital would go down in the annals of the healthcare industry as a project that was planned with a poor market feasibility study. While the management took the tough decision to close down the project, several mega hospitals across the country are struggling to survive and a slew of organisations are planning to exit their hospital division as well. Some of these unprofitable hospitals are mammoth-sized projects, and even had high occupancy rate once upon a time but saw a plunge in patient footfall and revenue with rapid changes in the market dynamics.

But why are hospital projects bleeding even if there is a great demand supply gap in the Indian healthcare firmament? Hospitals are gasping for survival as the manpower costs are escalating at a rate substantially over the rate of inflation, while there is huge pricing pressure from insurance companies, corporates and various Government schemes. Also, the Government has implemented controlled pricing for implants and devices and various state Governments are threatening to put in place measures to monitor and control hospital pricing, say experts. Says Dr Lloyd Nazareth, Executive Director, Asian Healthcare Holdings, the investment platform set up by TPG Growth to invest in India, “Many of these large sized hospital projects have run aground due to the fact that one has built large capacities at costs which are higher than what would make economic sense. In such a situation, the promoters are stuck with projects which are doomed to economic non-viability from day one.”

This story is from the October 2018 edition of Healthcare Radius.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.

This story is from the October 2018 edition of Healthcare Radius.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.

MORE STORIES FROM HEALTHCARE RADIUSView All
Entod opens R&D center in Navi Mumbai
Healthcare Radius

Entod opens R&D center in Navi Mumbai

ENTOD Pharmaceuticals inaugurates a new R&D center in Navi Mumbai, focusing on innovative pharmaceutical solutions and global leadership.

time-read
1 min  |
March 2024
DEDICATED ECMO UNITS: A POST-COVID IMPERATIVE
Healthcare Radius

DEDICATED ECMO UNITS: A POST-COVID IMPERATIVE

In the post-Covid world, the necessity of dedicated ECMO units have become paramount for managing critical cases efficiently, says the author.

time-read
3 mins  |
March 2024
HOPE AMIDST HESITATION?
Healthcare Radius

HOPE AMIDST HESITATION?

The Union Finance Minister Nirmala Sitharaman's Budget 2024-25 elicited a mixed response from healthcare sub-segments.

time-read
3 mins  |
March 2024
THE WONDERS OF WEARABLES Discover how wearables can offer a new hope to migraine patients in India.
Healthcare Radius

THE WONDERS OF WEARABLES Discover how wearables can offer a new hope to migraine patients in India.

Digital therapeutics (Dtx) is an emerging concept for therapeutic approaches in healthcare system.

time-read
2 mins  |
March 2024
ONLINE HEALTHCARE CONSULTATIONS: A TRANSFORMATION UNFOLDING
Healthcare Radius

ONLINE HEALTHCARE CONSULTATIONS: A TRANSFORMATION UNFOLDING

Discover how online consultations are transforming India’s healthcare landscape with the use of advanced technologies.

time-read
9 mins  |
March 2024
DRUG-RESISTANT TUBERCULOSIS: A CHALLENGE IN THE LAST LAP?
Healthcare Radius

DRUG-RESISTANT TUBERCULOSIS: A CHALLENGE IN THE LAST LAP?

India aims to eliminate tuberculosis by 2025, but drug-resistant strains pose a formidable challenge. Explore healthcare leaders’ views and potential solution approaches they offer—in this report.

time-read
10+ mins  |
March 2024
Meghalaya Cancer Conclave 2024 discusses cancer care in the state
Healthcare Radius

Meghalaya Cancer Conclave 2024 discusses cancer care in the state

Led by Dr Mazel Ampareen Lyngdoh, conclave focuses on critical cancer care issues.

time-read
1 min  |
March 2024
Woman with atrial septal defect saved at Medica
Healthcare Radius

Woman with atrial septal defect saved at Medica

A middle-aged woman from West Bengal suffering from Atrial Septal Defect ASD) successfully undergoes a complex procedure at Medica Hospital.

time-read
1 min  |
March 2024
Breastfeeding education initiative launched
Healthcare Radius

Breastfeeding education initiative launched

RISHTA 2024: An initiative by BSV and FOGSI to enhance breastfeeding education in India.

time-read
1 min  |
March 2024
5-kg fibroid removed with minimally invasive myomectomy
Healthcare Radius

5-kg fibroid removed with minimally invasive myomectomy

Doctors at Sahyadri Hospitals in Pune removed a 5-kg fibroid from a 35-year-old woman using a minimally invasive myomectomy, typically used in cesarean sections.

time-read
1 min  |
March 2024