Hospital chains set for healthy revenue growth in FY22

Mumbai: Despite the third wave of the Covid-19 pandemic hitting elective surgeries and infecting a large number of medical personnel, hospitals are expected to close the current fiscal with robust revenue and margin growth, as healthcare facilities are reporting around 62 per cent occupancy, leading to a 6 per cent rise in returns per average room, says a report. Large hospital chains have reported a full 85 per cent growth in revenue leading to a 20 per cent growth in operating margin in the first half (H1)of the current fiscal, says an Icra report, adding the robust growth is expected in the third quarter as well, though the fourth quarter may see some blips.

With the number of the pandemic caseloads rising continuously, elective surgeries have taken a hit across the country. In addition to lower number of patient footfalls, large number of healthcare workers are testing positive for the infection, which is impacting services to a certain extent. But this is cushioned by relatively longer average length of stay, says the report.

Hospitals have reported strong performance in Q2 supported by healthy ramp up in elective procedures and strong room/bed occupancies, which rose by 6 per cent, notes the report based on seven listed hospital chains and attributes the same to pent-up demand for organised players in the high-end/complex surgery space.