When at one hand India has seen a jump in medical tourism, why on the other hand have families owning big private Indian hospitals looking at an exit or already exited? The answer to this has many layers. High CAPEX and OPEX requirements, regulatory measures on capping the prices of cancer drugs, knee implants, etc. Around 12-18% EBITDA for a hospital is considered competitive, which currently is not the case with many hospitals clocking in a single-digit EBITDA.
Stakes in some renowned private Indian hospitals have already been picked up by foreign investors, making it a lucrative sector to invest in. With data analytics, policy and process controls, innovations and technology brought in, investors are looking at reviving the sector and give it the much-needed monetary push as well.