India's hospital sector recovering; patients relying on large hospitals: Report
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As per a report by HDFC Securities, India's hospital sector is witnessing a promising recovery trend as large hospitals gain market share.
"Post Covid, recovery trends are promising with large players gaining share after a severe impact in 1HFY21; the industry witnessed healthy recovery trends in the past quarter," reads the report.
"Large players have gained market share as patients preferred visiting corporate chains or quality healthcare providers in the crisis time. We expect a gradual recovery in mature or flagship units of our covered companies as the international patient segment remains impacted," it added.
The report, reflecting on the greater acceptance of digital intervention into healthcare post-Covid, reads, "We believe the integrated offerings of digital platform (e-pharmacies, teleconsultation, diagnostics) and physical network could present meaningful synergies for players like Apollo (Apollo 24/7)." The port further cited secular growth, asset-light models, India's huge demand-supply gap, rising health insurance penetration, high out-of-pocket spending, increase in medical tourism as growth prospects for the industry.