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SME hospitals to grow in single digits through FY26
Business Standard
|January 01, 2025
The revenue of small and medium (SME) hospitals—with annual revenue of less than ₹250 crore—is expected to grow at a sedate 3-5 per cent year-on-year and 5-8 per cent in financial year 2025 and 2026, respectively.
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The key reason is patients continuing to favour large hospital chains on the back of pan-India insurance penetration increasing to 38-40 per cent from 23 per cent in FY15 (according to CRISIL MI&A Research).
The segment's operating margin is projected to contract 50-80 bps Y-o-Y 14-15 per cent in FY25, owing to rising employee costs and medicine expenses, and price caps on treatments under Ayushman Bharat. But in FY26, margins are expected to recover 50-100 bps, supported by higher average revenue per occupied bed and bed occupancy levels.
Dit verhaal komt uit de January 01, 2025-editie van Business Standard.
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