Tag: Narayana Health

Narayana Health forays into insurance, planning comprehensive healthcare coverage

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Bengaluru-based private hospital network Narayana Health has received approval from the Insurance Regulatory and Development Authority (IRDAI) to set up its wholly-owned subsidiary Narayana Health Insurance.

Sharing details on the new venture with CNBC-TV18, Viren Shetty, Executive VC at Narayana Health, said the company plans to start with a small launch in Mysore sometime in May.

The plan is to run a targeted, narrow network, which will cover a very large spectrum of care.

“As a healthcare provider, when we think of insurance, we think health services first, not about selling our plan,” he stated.

The announcement comes at a time when the Supreme Court is contemplating measures to standardise hospital rates and ensure price transparency under the Clinical Establishments Act.

Consumer Affairs Secretary Rohit Kumar Singh also recently told CNBC-TV18 about concerns over unfair practices in healthcare and pharma and the need for systemic changes.

He also talked about the need for changes in mandatory 24 hours hospitalisation clause.

Shetty acknowledged the necessity of transparency in healthcare pricing, but cautioned against a one-size-fits-all approach.

He said the complexities of India’s healthcare landscape with its diverse patient demographics and payer categories needs to be considered before making any major changes.

Shetty also highlighted the evolving nature of healthcare delivery, citing advancements such as robotic surgeries and enhanced ICU care that have significantly reduced hospitalisation durations.

He underscored the need for insurance policies to adapt to these changes, recognising day-care procedures as a substantial component of modern healthcare delivery.

Narayana Health has a market capitalisation of ₹25,443.94 crore. Its shares have gained 63% over the last year

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Narayana Health says it is growing without passing on higher costs to patients

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Narayana Health, a leading private hospital network, has managed to grow without raising the average revenue per patient. This approach reflects the company’s commitment to not burden patients with additional costs, even when facing industry headwinds.

Sandhya J, Group CFO of the company formerly known as Narayana Hrudayalaya, pointed out to CNBC-TV18, “We do not take up prices during the year. At the beginning of the year, on January 1, we publish our prices on our website, and that remains the price for the rest of the year.”

The CFO added that under very unusual circumstances, the company might consider a price adjustment, although it has never done so in the past. Historically, Narayana Health has adopted a policy of minimal price increases, typically opting for low single-digit hikes annually.

In terms of growth though, she noted that Narayana Health has achieved significant progress without resorting to raising the average revenue per patient.

A key factor contributing to this growth is the improvement in the surgical mix, which has enhanced the hospital’s service offerings. Additionally, the company is doubling down on expanding its capacity, actively exploring inorganic opportunities to bolster its healthcare services.

Narayana Health has applied for an insurance license, a process that is currently underway and is also actively exploring inorganic opportunities as part of its broader strategy to enhance its footprint.

“We have built a very strong portfolio of services, and we are doubling down on our capacity strength. We look at inorganic assets from time to time opportunistically,” stated Sandhya J.

Also Read | Rising popularity of high-cost robotic surgeries to boost revenue per bed: Max Healthcare

Also Read | Narayana Health looks forward to IRDAI approval for insurance business by end of 2023

Operating multiple hospitals and heart centres in key Indian cities including Bangalore, Delhi, Gurugram, Kolkata, Ahmedabad, Raipur, Jaipur, Mumbai, and Mysore, and with an international subsidiary in the Cayman Islands, Narayana Health has a widespread presence.

Shares of Narayana hit a record high of ₹1,182 apiece on November 15 after its second-quarter profit beat Street estimates. The company’s net profit rose over 34% year-on-year (YoY) to ₹226.7 crore in the quarter ended September.

Bengaluru-based Narayana Health, established in the year 2000 by Devi Shetty, currently has a market capitalisation of ₹22,165.99 crore.

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Narayana Health looks forward to IRDAI approval for insurance business by end of 2023

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Bangalore-based multispecialty hospital chain Narayana Hrudayalaya Ltd or Narayana Health has taken significant strides towards diversifying its portfolio by submitting an application to the Insurance Regulatory and Development Authority of India (IRDAI) for its bundled insurance plans.

This strategic move aims to bridge the gap between healthcare services and insurance, bringing more comprehensive and integrated solutions to patients and healthcare customers.

Viren Shetty, the Executive Vice-Chairman of Narayana Health, in an interview with CNBC-TV18, said that the group is soon expecting the approval for its  insurance business, to be started by the end of the calendar year 2023.

Narayana Health’s vision of an integrated healthcare and insurance system is a promising development in the Indian healthcare industry. It has the potential to redefine how healthcare services are accessed and financed.

“Our idea for health insurance is one that combines a huge amount of healthcare services on one end, as well as providing a plan that covers comprehensive health care,” Shetty said.

This approach represents a paradigm shift in the way healthcare and insurance are traditionally perceived and offered.

While the timeline for IRDAI approval remains contingent on regulatory processes, he said, “This calendar year is the hope but more likely it will be by the time we are ready to roll this out by the end of the fiscal year or sometime next calendar year.”

Additionally, the integration of healthcare services and insurance can contribute to better health outcomes. Patients may have access to a wider range of preventive and diagnostic services, resulting in early detection and treatment of health issues. This proactive approach aligns with Narayana Health’s mission of promoting overall well-being and longevity.

The company has recently launched a new logo and is currently engaged in a rebranding campaign with the aim of consolidating all its portfolios under a single name, a shared mission, and a common purpose. According to Shetty,  this rebranding effort involves bringing all the hospitals under the Narayana brand, promoting unity.

Founded by Dr Devi Shetty, a well known heart surgeon, Narayana Health has a network of 24 hospitals across India at present. This includes several multispecialty hospitals, 7 heart hospitals and a couple of eye hospitals.

For more details, watch the accompanying video

Also, catch all the live updates on markets with CNBC-TV18.com’s blog

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Narayana Health announces planned price hike for next year, says single-digit correction based on inflation

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Every year, on January 1st, they implement pricing revisions. For the current year, the price adjustment has already been made, reflecting a modest single-digit increase. This change primarily accounts for inflationary pressures.

“Our price increase for this year has already done, and we have taken a very low single digit price correction mainly to account for inflation partially. So our next correction will come only at the beginning of next year.”

In terms of pricing strategy, Sandhya underlined the company’s intention not to adopt an overly aggressive stance. This Bengaluru-based private hospital is committed to maintaining a specific price range, with the possibility of slight enhancements.

However, the company does not aim to achieve substantial profit margins of around 20 percent. Such margins would necessitate significant adjustments to pricing, which would not align with their desired operating model and service quality standards.

Read Here | Narayana Hrudayalaya Q1 Results | Net profit zooms by 66% to Rs 184 crore, revenue up by 19%

She noted that a substantial portion of their improvements is coming from enhanced efficiencies in operations.

“We would probably operate at this margin, maybe slight improvement coming out of efficiencies, we obviously are focusing on efficiencies, but we don’t exercise the price lever, so as aggressively, so therefore, I am not going to give you an extremely optimistic view saying we will go on late 20s on the margin side.”

Discussing the demand landscape, Sandhya noted that the demand for Narayana Health’s services remained robust even after the challenges posed by COVID-19. Initially, there was a resurgence of pent-up demand, which has now subsided. The sustained demand is seen as a result of improved healthcare awareness among the population rather than a temporary post-COVID surge.

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Sandhya highlighted the advancements in medical practices, using the example of simplifying complex surgeries like knee replacements through innovative approaches.

Looking ahead, the group CFO shared the company’s strategic plan to elevate its position in the value chain.

The stock was trading at Rs 996.40 on the NSE, up by 0.69 percent. It has lost over 3 percent in the last one months.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Narayana Health wants to expand further in core markets, including Bengaluru and Kolkata

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Bengaluru-based hospital chain Narayana Health plans to expand further in its core markets and will undertake greenfield expansion in cities, including Bengaluru and Kolkata.

Narayana Health group CFO Sandhya J said that since India is an underserved market, there is ample room for growth and expansion.

“Narayana Health intends to focus on expanding in core markets where the company already enjoys significant brand dominance,” she said.

“As far as where we want to spend, one we want to first expand in our core markets, where we have a significant brand dominance and we also need capacity. So, in Bangalore and Kolkata, we will expand through new Greenfield projects,” Sandhya said.

“We will acquire land in Kolkata and in Bangalore we already have land available,” she added.

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According to May 2023 Equirus Healthcare tracker, there is strong interest seen in the hospital space when it comes to M&A and deal activity. In terms of deal value, in CY2023, investments in hospital sector is leading the space.

However, Sandhya said the group has a cautious approach to M&A, emphasising the need for careful consideration.

She said, “From our point of view, we are cautious on the M&A front. The assets are fairly high priced at the moment. We are an affordable healthcare player and every day we strive to bring the lowest cost or the most affordable cost for our patients at the highest possible quality. So therefore, while we are not averse to M&A, we will be very careful.”

Lastly, addressing the issue of stake sales, the CFO categorically stated that Narayana Health has no intention to sell its stake.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

No COVID case load yet, well prepared to tackle: Narayana Health

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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[wealthdesk shortname=”Narayana Hruda” isinid=”INE410P01011″ bseid=”539551″ nseid=”NH” sector=”Hospitals & Medical Services” exchange=”nse”]

Though there are concerns about COVID-19 cases rising again and states like Delhi, Goa and Bihar etc. already in preparation mode, on-ground it has not started to take a toll on the hospital infrastructure yet. Speaking to CNBC-TV18, Narayana Health’s Group CFO Sandhya J, said that they are well prepared to tackle the situation.

India logged 163 new coronavirus infections, while the active cases declined to 3,380, according to the Union Health Ministry data updated on Friday.

“We have beds that can be converted into ICU and we have adequate manpower,” she added.

According to the hospital, a level of hybrid immunity is helping because of vaccinations.

“We do not know if it is that state that we should start panicking. I think there is some level of hybrid immunity, which is there, one because of the vaccination coverage and second because most of India has got infected with COVID in some form or the other, and therefore there is some natural immunity,” she said.

Also Read: PM reviews Covid situation; cautions against complacency, directs officials to strengthen surveillance measures

The Union Health Minister Mansukh Mandaviya will hold a meeting with state health ministers on Friday to discuss rising COVID cases in parts of the world. The meeting comes a day after the government urged people across states to wear masks, practice social distancing and take precautionary doses.

New travel guidelines were also issued after Prime Minister Narendra Modi held a high-level meeting on Thursday.

Also Read: Air travel guidelines amid COVID surge: Health ministry could mandate ‘Air Suvidha’ form, vaccination again

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Follow LIVE updates on COVID-19 situation in India here.

Also, catch all the live updates on markets with CNBC-TV18.com’s blog

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

COVID booster shots to help vaccine revenue uptick; increasing online diabetic clinics: Narayana Health

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Sandhya J, Group Chief Financial Officer, Narayana Health, on Monday, said that COVID booster shot is likely to result in an uptick in vaccine revenue. However, she shared that overall, the company isn’t looking at vaccines as a profit generating opportunity.

Sandhya said, “We don’t look at vaccination as a profit generating opportunity. We have taken a call that we would do vaccinations at cost so therefore, we are not tracking vaccination as a revenue metric. We do it as our give back to society and therefore, yes, with the booster shots coming in, there will be an uptick in vaccination revenue. However, we are not tracking it as a revenue line item.”

She mentioned that they are looking at various initiatives via digital platforms such as increasing the number of online diabetic clinics and other measures to remain connected with the patients.

She said, “Like every other hospital chain, we have also been looking at various initiatives. We continue to invest in our NH Care app to be digitally connected with our patients. Our online diabetic clinic has picked up a lot of traction. We have also been adding clinics, mainly to reach out to patients who cannot reach the hospital. So there is a lot of investments that are going into new business models, digitally connecting with the patients, etc.”

Narayana Health recently posted its Q3 earnings. On its quarterly performance, she said that this quarter is generally a festive quarter however this time has been an exception. She explained that average revenue per patient has remained constant. She also mentioned that the company saw positive movement in footfalls both for in and out-patients. Additionally, she shared that COVID revenue remained small in the previous quarter.

She said, “This quarter has been an exception, maybe because there was pent-up demand in Q1. I think that effect has come through. Our average revenue per patient has been more or less constant, but we have seen a very positive movement in our in-patients and out-patients footfall. So if I give a year-on-year number, our in-patient (IP) footfall would have gone up by some 20 percent, out-patient (OP) footfall would have gone up by some 50 percent so we are seeing a flow through into the revenue numbers of the quarter.”

On business operations excluding the new units, she mentioned that they have hit a threshold. She explained that the company will go with the continued run rate for Cayman Island unit. She said, “Similar run rate like you have seen is what we are continuing to expect. I think going into next quarter, we will hold the run rate.”

Watch the video for the full interview.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Omicron threat: Fortis Healthcare, Narayana Health say India better prepared; oxygen infra ready

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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At a time when the number of cases of the Omicron COVID-19 variant has surged past 40 in India and several experts suggest the cases are going to spike further, two major hospital companies Fortis Healthcare and Narayana Health are of the view that the nation is better prepared to deal with the fresh wave, if any.

Ashutosh Raghuvanshi, MD and CEO at Fortis Healthcare, told CNBC-TV18 that he is not witnessing any increase in the number of cases as of now. He said that non-COVID occupancies have gradually improved and are near normal levels. Nonetheless, oxygen infra has been prepared and the availability of drugs and pharma is better too, he said.

Viren Shetty, ED and Group COO of Narayana Health too said he is not seeing many COVID-19 patients as of now. However, there have been a lot of queries on booster doses.

Also Read: Global hotel cancellations rise ahead of holidays due to Omicron, says Trivago

Earlier on Tuesday, a large-scale analysis in South Africa was released, according to which a two-dose Pfizer/BioNTech vaccination provides just 33 percent protection against infection by the Omicron variant of the coronavirus, but 70 percent protection against hospitalisation.

Speaking about vaccines, Shetty said some people who have recently travelled have got booster doses. However, it is likely that a large number of people have antibodies to fight the disease.

Also Read: India needs to set policy for boosters as Omicron cases likely to rise significantly, says Dr Shahid Jameel

Raghuvanshi, on the other hand, reflected on the business aspect of vaccines and said that revenue from vaccination has been low. He acknowledged that the immunisation campaign was a social programme and not necessarily a revenue driver.

Watch the accompanying video for more details 

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

COVID scare: No increase in demand for hospital beds, says Fortis Healthcare

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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As fear of COVID returns with the emergence of Omicron variant, the focus has once again shifted to the hospitals and diagnostics space with respect to not only their revenue generation but also in terms of their preparation to handle a third wave, should there be one caused by the new variant.

CNBC-TV18 spoke to Ashutosh Raghuvanshi, MD & CEO of Fortis Healthcare, and Viren Shetty, ED & Group COO at Narayana Health, to take stock of the on-ground preparation of hospitals in case of a surge in cases caused by the Omicron variant.

Raghuvanshi said, “Though the situation had improved considerably but I think the guards should not be lowered, that is the approach Fortis has taken. We have kept ourselves prepared both in terms of infrastructure as well as protocols.”

He added, “So the repurposing of areas in order to accommodate patients if and when required, is always there. However, we are not seeing any increased demand for hospital beds at the moment, the number still remains very low.”

He mentioned, “We don’t know the behaviour of the mutated strain and maybe it will not require that much of hospitalisation. But I can assure you that the hospitals are much better prepared than what they were during the Delta wave, both in terms of infrastructure as well as protocols. So I think as a nation, we are well prepared to handle any situation.”

Read Here: India’s resilience to COVID variants high; Omicron’s impact likely to be less severe: Citi Private Bank

Meanwhile, Shetty said, “As much as one can be prepared for another massive wave, we have everything but the fact is the virus mutates and it could be very different. If it behaves in the same way as Delta does, hospitals such as ours and all other hospitals across the country are prepared to deal with it. If it turns out to be a very different picture, well then it can be treated very differently.”

“Everything we have been told about the Omicron variant from South Africa is that it causes relatively mild symptoms that can be managed at home, which again, is not too bad a picture for us,” he said.

In the wake of reports of Omicron variant having emerged from South Africa, a senior official of the city civic body confirmed that at least 1,000 travellers  have landed in Mumbai from African countries in the last fortnight alone.

Swab samples of at least 100 travellers have been collected out of the 466, whose list has been received so far, Brihanmumbai Municipal Corporation’s (BMC) Additional Municipal Commissioner Suresh Kakani, said.

Read Here: India’s COVID-19 tally lowest in 551 days at 6,990; Kerala reports backlog of 58 deaths

As far as cases go, India logged 6,990 new coronavirus infections, the lowest in 551 days, taking the country’s total tally of COVID-19 cases to 3,45,87,822.

The active cases have declined to 1,00,543, the lowest in 546 days, according to the Union Health Ministry’s updated data as of today, November 30. The daily rise in new coronavirus infections has been below 20,000 for 53 straight days and less than 50,000 daily new cases have been reported for 155 consecutive days now.

A decrease of 3,316 cases has been recorded in the active COVID-19 caseload in a span of 24 hours. The daily positivity rate was recorded at 0.69 percent. It has been less than 2 percent for the last 57 days.

The death toll numbers have climbed to 4,68,980 with 190 fresh fatalities, according to the Union Health Ministry’s data updated at 8 am today.

(With text inputs from PTI)

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow