Hospitals: Buoyancy to sustain despite initial Omicron scare, ICICI Securities

Hospitals had to deal with the Omicron Covid wave in the first half of Q4 but since the reported hospitalisation rate was significantly lower than Delta variant, we expect occupancy levels to have recovered swiftly. Amid optical initiatives like tele-consultation, digital app based drives for treating patients at remote locations, zoning of patients besides higher focus on insurance/out of pocket payees, we expect the hospitals universe to maintain Q3FY22 momentum, if not surpass it. Primarily IPD (surgeries and diagnostics) contribute bulk of revenues to hospitals, which would have taken mild downturn during the peak of Omicron wave in this quarter. Had it not been the initial Omicron fracas the sequential growth expectation could have been slightly better. International patient mix is expected to be below pre-Covid level due to continued curbs on inbound airlines.