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.