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Credit Metrics of Large Hospitals is in Bad Shape: ICRA

Despite the fact that India has managed to lower the incidence of communicable diseases, the occurrence of lifestyle related diseases (non-communicable) are on the rise and the same are likely to be a major contributor to hospital revenues going forward. Lifestyle diseases are those that are a result of habits/lifestyle related factors such as unhealthy food habits, alcohol consumption, lack of physical activity, stress, age, and urbanisation. As per an  ICRA note, the largest contributor to revenues is cardiology, which accounts for almost 25% of the total income of the hospitals in the sample; the second largest contributor is neurology, accounting for 10% of revenues, followed by orthopaedics (9%), and oncology (8%). ICRA has analysed five of the largest hospital chains in the country, which together operate ~19300 beds. For most of these hospital chains, the income from top five lifestyle specialties currently account for more than 60% of the revenues.

ICRA Limited was set up in 1991 by leading financial/investment institutions, commercial banks and financial services companies as an independent and professional investment Information and Credit Rating Agency.Today, ICRA and its subsidiaries together form the ICRA Group of Companies (Group ICRA). ICRA is a Public Limited Company, with its shares …

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