In an interview to CNBC-TV18, Viren Shetty, executive director & group COO of Narayana Health and Ashutosh Raghuvanshi, MD & CEO of Fortis Healthcare spoke at length about what lies ahead for the hospital business.
The exuberance seen in the hospital stocks is on the back of factors such as growing healthcare awareness post-COVID-19 and recovery in earnings as seen in Q1, according to analysts. In an interview with CNBC-TV18, Viren Shetty, executive director & group COO of Narayana Health and Ashutosh Raghuvanshi, MD & CEO of Fortis Healthcare spoke at length about what lies ahead for the hospital business.
First up, Shetty said that COVID-19 will not be a big pie of hospital revenues going forth. “As it gets minor, the need for hospitalisation isn’t that much except for very severe cases and vaccinations have never been a big part of hospital revenues,” he said.
Coining similar views, Raghuvanshi of Fortis Healthcare said that the vaccine and COVID-related revenues had limited potential.
"COVID, as it becomes an endemic illness, will be just like any other infectious disease and that will form not so significant part of revenue if we have to look at it as a stream. Similar is the situation with vaccines as well,” said Raghuvanshi.
On expansion, he added that the company was focusing on brownfield expansion in its hospitals.
“We are focusing on increasing brownfield expansion in our given hospitals to the tune of 1,300 beds over the next 3 years and then a further 1000 beds in next 2 years. So in next 5 years, it becomes about 2,400 beds and other than that we will look for inorganic expansion which would be brownfield kind of expansion and not necessarily greenfield, but we are bullish about growth at the moment,” said Raghuvanshi.
For the entire discussion, watch the video