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Dr Naresh Trehan explains why 20 25% margin is ideal in healthcare sector

healthcare | Dec 16, 2022 3:45 PM IST

Dr Naresh Trehan explains why 20-25% margin is ideal in healthcare sector

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In an interaction to CNBC-TV18’s Ekta Batra, Dr Naresh Trehan, Chairman & MD at Medanta said the focus is to make healthcare as reasonable as possible and keeping that in mind round 20 to 25 percent is the ideal margin to have in healthcare.

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Global Health Ltd, which operates hospitals under the Medanta brand, is focusing on making healthcare as reasonable as possible, said Dr Naresh Trehan in an interview with CNBC-TV18 and added that for doing so a 20 to 25 percent margin is ideal.
Talking from his flagship hospital Medanta Medicity in Gurugram, Dr Trehan explained, "The pricing has to give enough that you can renew yourself, you can pay back your debts, and also leave enough margin for growth. So, putting this together I think around 20 to 25 percent is the ideal margin which you should have in healthcare because I always say it is not a business, it's a business with a soul."
He further added that by principle they don't want to be the most expensive in the market, no matter how good their facilities are.
"We want to make it as real as reasonable as possible,” he said.
Dr Trehan pointed out that India is a growing hub for medical tourism with the country providing quality and cost-effective services. However, the biggest bottleneck for international patients has been visa issues.
“As we speak today, over 140 visas waiting in Iraq to come. The other thing is that the Prime Minister has announced two schemes now 'Heal in India' and 'Heal by India'. That also has triggered all the services. So I think that India has a huge future for actually serving,”
Watch the video for more.
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