IndiGlobal Bureau
Global investors are making a bee-line and investing in the private healthcare industry. The global consultancy PwC forecast 12-14% annual growth for the private healthcare market currently worth $48 billion.
According to Rana Mehta who heads the PwC’s India’s healthcare practice, there is heightened activity in the healthcare segment. There are several players looking out for a stake in major firms. According to reliable sources, U.S. investment giant Blackstone is in talks with CARE Hospitals Group. It may be mentioned that CARE is one of the leading group in healthcare space with 16 hospitals in seven cities.
The demand for private hospitals is increasing with rise in incomes, double income i.e. by couples and general growth in the economy. Another factor for people to look towards private hospitals is the latest equipment that private players possess.
Last year, Clove Dental chain received $67 million. Indian private equity firm Kedaara Capital invested $150 million. According to a report in Reuters, Centre for Sight, is in talks to sell a stake at a valuation of $200 million. Singapore’s state investor Temasek spent $2 billion in April lifting its stake in Manipal Hospitals, one of largest multispecialty chains whose services include cardio and neuro surgeries, by 41% to 59%.
In 2022, PE investors spent $3.2 billion buying stakes in hospitals in India. Within the country, several hospitals are either buying out each other or are merging. KIMS acquired Sunshine Hospital in Hyderabad.
Health insurance too is growing. In 2020/21, regulatory data shows that premiums for health insurance policies rose 25% to $8.8 billion – the highest for at least five years. With growing awareness, people no longer invest in health insurance as a means to save tax but for a good future.
