Private hospitals average bed bill goes up above Rs 50,000 per day


Rama Krishna Sangem

Major Indian hospital chains have reported an increase in their average revenue per occupied bed (ARPOB) for the nine-month period of the current financial year (9MFY2024) – around Rs 50,000 per bed per day in 9MFY24 compared to Rs 45,800 per bed per day in the same period last fiscal year. According to estimates by rating agency ICRA, ARPOBs will increase by 8-10 percent in the 2023-24 fiscal year.

ICRA’s sample set of hospitals has shown an increase in ARPOBs by 10.35 percent in the nine-month period of 2023-24. For the full fiscal year 2023-24, ICRA estimates that the listed companies it tracks will witness a healthy year-on-year growth of 8 to 10 percent – Rs 49,708 per bed per day from Rs 45,800 per bed per day reported in FY23.

ICRA feels that the rise will be aided by improving speciality and case mix, better payor mix (with a higher contribution of cash and insurance patients), and annual price revisions by companies to offset cost inflation.


Bills go up, in spite of more new hospitals 

The increase in ARPOB comes despite significant bed additions by hospitals in the past two financial years. ICRA’s sample set of companies added 545 beds in FY2022 and 1043 beds in FY2023. The agency also reported that these companies have added another 703 beds in the first half of FY2024 (H1FY24).

ICRA’s sample set includes the hospital business of nine listed companies namely Apollo Hospitals Enterprise, Aster DM Healthcare (India business only), Fortis Healthcare, Healthcare Global Enterprises, Krishna Institute of Medical Sciences, Max Healthcare Institute, Narayana Hrudayalaya, Rainbow Children’s Medicare, and Shalby.

In the 9MFY24 period, Max Healthcare reported a 14 percent year-on-year rise in its ARPOB figures, amounting to Rs 74,500 per bed per day from Rs 66,300 per bed per day in 9MFY23. Similarly, the 9MFY24 ARPOB figures for Apollo Hospitals Enterprise reflect a growth of 11 percent, reaching Rs 56,823 per bed per day from Rs 51,202 per bed per day for the same period last year.

Fortis Healthcare too reported a 10.7 percent increase at Rs 59,870 per bed per day in year-to-date (YTD) ARPOB figures till December 2023, from Rs 54,048 per bed per day in December 2022.

Commenting on the reasons behind the rise, a Max Healthcare spokesperson said that the growth can be attributed to a significant change in the clinical mix over the last year. “We are attracting more patients for tertiary and quaternary care work including high-end chemotherapies and robotic surgeries”, the spokesperson added.

Rama Krishna Sangem

Ramakrishna chief editor of excel India online magazine and website

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