The healthcare services sector is in focus after a recent HSBC note maintaining its positive view, saying the recovery would continue.
Ashutosh Raghuvanshi, MD & CEO, Fortis Healthcare and Viren Shetty, Executive Director and Group COO, Narayana Health spoke to CNBC-TV18 on recent trends.
On occupancy, Raghuvanshi said, “Q2 saw a very healthy performance where the occupancy levels went up to about 57 percent. We see the trend of recovery going on through the month of October as well where the occupancy rates overall were about 65 percent in most of our hospitals. We are seeing the gradual recovery in the non-COVID work across the regions of the country.”
Shetty said, “COVID occupancy across our hospitals hover between 10-15 percent, occupancy has dipped quite a bit with an exception of a hospitals in Delhi.”
On elective surgeries he said, “During the peak of the pandemic lot of the people were not opting to get surgeries done and were postponing specifically around the cardiac. With time and as cases continue to decline and hopes of a vaccine coming here we expect the normalcy to resume within the first quarter of next year.”
On cost savings Raghuvanshi said, “Lot of emergency measures were taken for cost containment. My expectation is about 90 percent of the cost saving which we did in the first quarter would come back however 10 percent is likely to stay. Lot of structural changes have been made in the organisational structure and many other activities such as marketing and sales activity, we are moving to more of a digital channel etc. So many of these measures will remain sustained and I would expect that 5-10 percent of cost saving should be sustainable.”
“Currently we are at about 80 percent of the pre-COVID levels as far as elective work is concerned so that is still short by 20 percent and I think 10 percent of our volumes came from international patients so that volume is totally depleted at the same time in country also there are patients who travel from one region to other that part also is significantly affected. So we still see bout a 20 percent lag in the elective work.”
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(Edited by: By Santosh Nair)