9 in 10 private hospitals anticipate positive EBITDA in the next 3 years: report

For the public sector, 54% of hospitals expect a budget surplus over the next three years.

Both public and private hospitals in APAC reported a growing trend of profitability and surpluses, adding that they see a positive financial outlook by 2026, said L.E.K. Consulting.

In a report, L.E.K. Consulting said 92% of private hospitals in the region said they expect a positive EBITDA in the next three years whilst 54% in the public sector anticipate a budget surplus over the next three years.

Per country, private hospitals in Japan, SEA and India have improved markedly post-pandemic, with 80% reporting profitability in each region, forecast to increase to above 90% by 2026.

"The financial outlook of public hospitals across the three regions has similarly exhibited an upward trend, with more than five times the number of respondents in each region expecting a budget surplus by 2026 compared to those reporting actual surpluses in the past three years," read the report.

Despite slow procedure volumes, South Korean hospitals experienced solid financial recovery, with most respondents in both the public and private sectors expecting a budget surplus or profitable margin over the next three years.

In China, the financial outlook is more mixed. Public hospitals reporting budget surpluses tripled to 31% from 10% in the past three years, a figure that is expected to exceed 50% in the next three years.

Private hospitals in China, however, will see more tempered financial improvements. Only 79% of respondents expect to be profitable in the next three years, a level that remains virtually unchanged from the 78% currently reporting profitability

L.E.K. Consulting gathered data from more than 600 hospital executives in five regions.