Indian hospital sector's CAGR to grow 12% in the next three fiscal years: report

Health insurance expansion and medical tourism will support the hospital industry's growth.

Hospitals in India will experience a CAGR growth of 12% over the next three fiscal years driven by the growing oldest population, expansion of health insurance coverage, and improved disposable income, according to CareEdge Ratings.

In a report, CareEdge said the hospital industry remained robust due to the expansion of Average Revenue Per Occupied Bed (ARPOB), amplified occupancy rates, augmented operational bed capacity, and reduced average length of patient stays (ALOS).

The report showed that the growth of hospitals revived and reported a CAGR of 11% from 2020 to 2023. CareEdge also indicated that this revival stemmed from the subsided increase of infections and the return of elective surgeries.

"As per the Organisation for Economic Cooperation and Development data for 2020, it is observed that the healthcare penetration in India is considerably low as evidenced by less than 1 bed or doctors per 1000 people, indicating a high scope for improvement," read the statement.