Connect with us

Headlines of The Day

Indian private hospital chains record huge jump in ARPOB in FY24

Major Indian private hospital chains have posted an increase in average revenue per occupied bed (ARPOB) per day in the financial year 2023-24 (FY24).

The figure has touched an estimated Rs 49,800 per bed per day compared to Rs 45,800 per bed per day in the financial year 2022-23 (FY23). This comes as hospitals expand their bed capacity also.

According to ratings agency ICRA, ARPOB per day is expected to increase by 5 to 6 per cent in the financial year 2024-25 (FY25).

ICRA’s sample set of companies added 545 beds in FY22 and 1,043 beds in FY23. These companies added an estimated 1,591 beds in FY24.

The growth in ARPOB in FY24 is largely attributed to an improved specialty and case mix, a better payor mix, and a healthy recovery in footfalls from international patients.

This is in addition to annual price revisions by companies to offset cost inflation.

For the full FY24, Max Healthcare reported a 12 per cent increase in ARPOB to Rs 76,000 per bed per day from Rs 67,000 per bed per day in FY23.

Similarly, the FY24 ARPOB for Apollo Hospitals Enterprise reflects a growth of 11.3 per cent, reaching Rs 57,488 per bed per day from Rs 51,668 in the last financial year.

Fortis Healthcare also reported a 10.7 per cent increase, with ARPOB reaching Rs 60,887 in FY24 from Rs 54,954 in FY23.

Speaking to Business Standard, Ashutosh Raghvanshi, managing director (MD) and chief executive officer (CEO) of Fortis Healthcare, said the increase is mainly due to growth in core specialties, particularly oncology and high-end surgeries in various other areas.

“Our surgical volumes were slightly higher, at about 58 per cent, and procedures like transplants, robotic surgeries, and radiation therapies saw volume growth exceeding 50 per cent. These procedures have high ticket sizes, resulting in higher ARPOB,” he said.

Yogesh Sareen, senior director and chief financial officer (CFO) of Max Healthcare said price revisions, including those for institutional segments like the central government health service (CGHS) and insurance companies, also added to the improvement in ARPOB.

“Relatively higher growth in revenue from international patients, upcountry patients, and a steady increase in outpatient department (OPD) footfalls contributed to ARPOB growth,” he added.

ICRA’s sample set includes the hospital business of nine listed companies. They are 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 Hospitals.

For FY25, Max Healthcare has announced plans to add 443 beds, while Fortis Healthcare will add around 700 beds. Apollo Hospitals Enterprise plans to add 1,170 beds in FY25, according to its Q3FY24 investor presentation. Business Standard

Copyright © 2024 Medical Buyer

error: Content is protected !!