A massive loss in revenue for private hospitals in India

Conducted by the Federation of Indian Chambers of Commerce and Industry (FICCI) and Ernst & Young (EY), the report highlights that while private facilities in the region – which, together with nursing homes make up more than 60 per cent of beds, 60 per cent of in-patients and 80 per cent of doctors in India - have invested heavily in expensive medical equipment in recent times, a massive drop in the number of international patients due to travel curbs have left many facilities at a loss.

The lockdown has now also been extended until the 3 May, and the study predicts that it may take up to the third quarter before the situation there returns to normal.

Sangita Reddy, President, FICCI and Joint Managing Director, Apollo Hospitals Group, said: “There is an urgent need to consider the healthcare industry’s triple burden of low financial performance in the pre-Covid state, sharp drop in out-patient footfalls, diagnostic testing, elective surgeries and international patients across the sector and how this is impacting cash flow; and the increased investments due to Covid-19, which has impacted the hospitals and laboratories like never before.”

Kaivaan Movdawalla, Partner, Healthcare, EY India, also commented: “While the private sector stands fully committed to partner with the government as a national duty, it truly finds itself in a compelling situation to beseech the government for ‘differential’ financial forbearance measures and to be supported well, in order to best utilise its capabilities and capacity to serve the nation in this hour of crisis.”