BETTING ON BHARAT

India's hospital chains are entering an aggressive phase of expansion in Tier II/III cities to meet the growing demand for quality care

- BY NEETU CHANDRA SHARMA

IN DECEMBER 2023, when Max Healthcare ventured into Lucknow, it brought a sigh of relief for many like the 51-year-old Rekha Mishra, a schoolteacher with serious health issues. Earlier, she had to travel to Delhi to receive quality care. Max acquired the 550-bed Sahara Hospital—renaming it Max Super Speciality Hospital, Lucknow—through its subsidiary, Crosslay Remedies Ltd, in a ₹940-crore deal. The acquisition brought advanced services such as oncology, neurology, cardiac, and transplant care to Mishra's doorstep.

This phenomenon is not unique to Lucknow. It is playing out in Tier II/III cities across the country as major private hospital chains move beyond metros into smaller towns to meet the rising demand for specialised care, driven by a growing, insured patient base and affordable land.

CAPEX PLANS, STEADY EXPANSION

Map this: According to industry estimates, private hospital chains are preparing to add over 30,000 beds over the next four to five years, with a capital commitment of roughly ₹35,000 crore. The apparent next big wave of private healthcare investment in India is being directed at cities beyond the metros.

Take Max again. Its Lucknow acquisition wasn't a standalone bet. The group has announced fresh investments of ₹1,500-2,500 crore in the state. Part of this will go towards upgrading the existing facility—adding 265 more beds—and the rest to build a new 500-bed hospital along Shaheed Path.

In the south, Telangana-based KIMS Hospitals is looking to add 4,000 beds backed by a ₹2,000 crore internal investment while Aster DM Healthcare has lined up ₹1,900 crore for over 2,100 new beds.

Together, these hospital chains are laying down infrastructure not just in big cities but across state capitals and Tier II and Tier III cities, where patient demand has long outpaced supply.