Summary:

According to a joint analysis by LoEstro Advisors and Medium Healthcare, the SME hospital industry in India is projected to be worth Rs. 5 trillion (US$ 60.08 billion) by FY 2026-27, driven by localized demand and niche specialization. Despite catering to 60% of healthcare needs and accommodating 90% of hospital beds, SME hospitals face challenges such as lower profitability, longer patient stays, and competition from larger hospital chains and specialized clinics, particularly in Tier-II and Tier-III cities, impacting their sustainability and growth.

SME hospitals generate 40% less revenue per occupied bed due to performing fewer high-value treatments. Their focus on obstetrics and gynecology leads to an average length of stay (ALOS) that is 33% higher than that of larger networks. SME hospitals are also contending with growing competition from expanding hospital chains and specialized local clinics, particularly as large chains establish new locations outside Tier-I cities and clinics cater to middle-income patients.

Source: IBEF

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