India’s leading private hospitals are reporting a sharp rise in revenue per bed, driven by a surge in high-tech treatments and a growing base of patients ability to pay through insurance coverage. Data for 2024–25 show that average revenue per occupied bed (ARPOB) across 10 major hospital chains rose 23 percent to Rs 49,304 per day, up from Rs 40,015 per day in the previous year, according to company annual reports and analyst estimates.
Experts say the trend reflects a broader shift in India’s healthcare sector, with expensive procedures such as cancer treatments, heart surgeries and robotic operations becoming more common. “The increase is led by progress in technology in oncology, cardiac and robotic surgeries that increase the realisation per patient,” said Mythri Macherla, vice-president and sector head, corporate ratings, ICRA.
ARPOB, which measures how much hospitals earn daily from each bed in use, can rise even if total bills remain similar when patients undergo complex procedures but are discharged sooner. “If the patient stays for a shorter period of time for complex procedures across various therapies, the ARPOB goes up because of how it is derived,” explained Nitin Agarwal, analyst, DAM Capital Advisors.
Among individual hospital chains, Fortis Healthcare reported an ARPOB of Rs 66,301 for 2024–25, up 9 per cent year-on-year, while Apollo Hospitals’ ARPOB rose to Rs 60,588 from Rs 57,488. Krishna Institute of Medical Sciences posted the highest jump, with ARPOB climbing nearly 23 per cent to Rs 39,158 from Rs 31,916, and others showing gains included Aster (excluding QCIL, in which it acquired a 5 per cent stake during 2024–25), Krishna Institute of Medical Sciences, Narayana Health and Yatharth Hospitals.
Not all large players saw an increase, however. Max Healthcare’s ARPOB declined to Rs 73,000 from Rs 78,000, though the company said the figure would be Rs 83,000 if newly acquired hospitals in Noida, Nagpur, Lucknow and Dwarka were excluded. Rainbow Children’s Hospital reported a 3 per cent dip in ARPOB over the same period.
According to experts, rising per-bed revenue also reflects deeper shifts in how patients access care. “The reach of individuals has possibly changed due to increasing insurance coverage, which has resulted in more health-seeking and private care utilisation across the country,” said Pretesh R Kiran, who focuses on community geriatrics and public health at St John’s Medical College in Bengaluru.
The ARPOB trend comes amid a strong wave of consolidation in India’s hospital sector, with standalone and single-region players increasingly being acquired by regional and national chains. A recent KPMG report cited in the analysis suggests this consolidation is likely to continue as larger groups seek to strengthen their presence, particularly in tier-2 and tier-3 cities, supported by growing interest from global investors such as KKR and Blackstone.
