Mumbai: India’s leading private hospitals are seeing an increase in revenue per bed amid a surge in high-tech treatments and patients who can afford them through insurance coverage, according to analysts.
Data for 2024-25 reflects this trend, with revenue per bed at 10 major hospital chains increasing 23% to Rs 49,304 per day on average, from Rs 40,015 per day in the previous year, according to their annual reports and analyst reports.
The growth reflects a broad shift in India’s healthcare sector, according to experts. Expensive procedures, cancer treatments, heart surgeries and robotic operations are becoming more common and an increasing number of patients are able to pay for them through insurance.
The year-on-year growth averaged nearly 10% between 2022-23 and 2024-25, according to credit rating firm ICRA.
“The increase is led by progress in technology in oncology, cardiac and robotic surgeries that increase the realisation per patient,” said Mythri Macherla, vice-president and sector head, corporate ratings, ICRA.
The metric average revenue per occupied bed (ARPOB) captures how much hospitals earn daily from each bed in use.
When patients undergo complex procedures but recover quickly enough to leave sooner, the daily revenue figure rises even if total bills stay similar.
“If the patient stays for a shorter period of time for complex procedures across various therapies, the ARPOB goes up because of how it is derived,” said Nitin Agarwal, analyst, DAM Capital Advisors.
Fortis Healthcare reported an ARPOB of Rs 66,301 for 2024-25, up 9% year-on-year. Apollo Hospitals reported Rs 60,588, up from Rs 57,488, while Krishna Institute of Medical Sciences posted the highest jump of nearly 23% to Rs 39,158 from Rs 31,916. Others showing gains included Aster (excluding QCIL, in which Aster acquired 5% stake during 2024-25), Krishna Institute of Medical Sciences, Narayana Health and Yatharth Hospitals.
Not every major hospital chain saw increases. Max Healthcare’s ARPOB fell to Rs 73,000 from Rs 78,000, though the company said the figure would be Rs 83,000 excluding newly brought hospitals in Noida, Nagpur, Lucknow and Dwarka. While Rainbow Children’s Hospital reported a 3% dip.
Experts said the figures underscore that more Indians are getting diagnosed at specialised centres and then heading to large private hospitals for treatment.
“The reach of individuals has possibly changed due to increasing insurance coverage, which has resulted in more health seeking and private care utilisation across the country,” said Pretesh R Kiran, who focuses on community geriatrician and public health at St John’s Medical College in Bengaluru.
It comes amid a strong wave of consolidation in the sector, with standalone and single-region players increasingly being acquired by regional and national chains. According to a recent KPMG report, the trend is expected to continue as larger chains seek to improve their presence, especially in tier-2 and tier-3 cities.
The industry is also seeing growing interest from global funds such as KKR and Blackstone, which are providing a large capital pool to accelerate the growth. Kerala has emerged as a key anchor state for these investors, as recently reported by ET.
