Jan 10,2022 | Healthcare Services
Hospitals are the major stakeholders in India’s healthcare ecosystem. Some of the factors driving the expansion of the private hospital market are high disposable income, rise in population and changes in disease profiles. With about 70% of the rural population and 80% of the urban residents rely on private hospitals; the private hospital sector was valued at INR 9,995.06 billion in FY 2021. It is expected to reach INR 25,429.49 billion by FY 2027, expanding at a CAGR of ~20.53% during the FY 2021 ? FY 2027 period.
Furthermore, the Ayushman Bharat initiative has strengthened the healthcare system, from primary to tertiary care. The healthcare industry has three segments – self-pay, government payer, and corporate insurer. Initially at the beginning of 2020, the self-pay segment dominated the market, followed by government payer. However, owing to the expansion of insurance coverage by both government and corporate insurers, the corporate insurer segment is anticipated to experience noticeable growth.
Moreover, the increase in purchasing power, growing demand for quality healthcare, technological advancements, and development of private hospital networks have fuelled the growth of corporate medical insurance. It ensures patients’ entitlement to accidental hospitalization, COVID-19 insurance, daily hospital benefits, critical illness cover, and maternity coverage.
Impact of COVID-19
The second wave of COVID-19 affected the private hospital sector in India because patient footfall, both, domestic and international, declined. High infection rates and lockdowns compelled hospitals to pause non-emergency, and outdoor patient department (OPD) and indoor patient department (IPD) services. Medical tourism also declined due to travel restrictions.
Despite the initial dip in footfall, signs of recovery in patients and relaxed lockdown norms by the end of July 2021 marked an increase in hospital occupancy rate. Although the initial setback caused a nationwide crisis in India’s primary healthcare, key changes in the sector such as flexibility in operations, improved health insurance, and cost-effective medical tourism will strengthen the private hospital sector.
From a wide variety of healthcare market research reports, Bharatbook offers the latest market research analysis on Private Hospital Sector in India. The study covers market definition and structure, socio-economic indicators, market size and growth forecast based on value, impact on key operational metrics, financial performance, pricing and changes ahead. The report also includes market drivers and challenges, competitive landscape and the companies profiled in the analysis.
For more insights, we suggest you to visit Private Hospital Sector in India 2021.