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Massive shift happening for “economics of hospitals” in India, says Narayana Health
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Summary
There is a massive shift happening for the “economics of hospitals” in India, said Viren Shetty, executive director and group COO, Narayana Health. “We are seeing that there is going to be a lot more price control not just in drugs, in consumables but also across margin control for every input cost of ours,” he …
There is a massive shift happening for the “economics of hospitals” in India, said Viren Shetty, executive director and group COO, Narayana Health. “We are seeing that there is going to be a lot more price control not just in drugs, in consumables but also across margin control for every input cost of ours,” he said in an interview with CNBC-TV18.
CNBC-TV18’s ‘Riders in the Storm’ identifies companies that are bucking the slowdown trend and Narayana Health is the company that is weathering the storm in the healthcare sector.
“Fortunately, our numbers have been looking good and the year does look quite positive for us. There does exist seasonal variations. Generally, Q3 is a depressed quarter for most healthcare companies given that it coincides with both Diwali and Eid but we believe it will pick up in Q4. So we are quite positive for the rest of the year,” said Shetty.
“For the next year at least, we aren’t looking at expanding any more. We recently commissioned three hospitals, two in Delhi and one in Bombay. We have enough latent capacity within the group. We have 6,000 operational beds but we also have 7,000 capacity beds. So a lot of our efforts will go towards operationalising those beds,” Shetty added.
However, he did not rule out the expansion plans going forward.
On the expansion front, he said, “We are taking this pause to look at our operations and focus a lot more on additional transformation so that we are able to run things more efficiently within the existing infrastructure. Once we feel confident that this is something that is replicable is when we would be more confident about scaling because, at this point, a greenfield hospital simply is not able to generate an adequate return on capital.”
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