Private hospitals saw bed occupancy levels plunge in the first quarter of this fiscal due to reduced elective surgeries, preventive care, and medical tourism. And though footfalls have improved since the pandemic-related lockdowns started getting relaxed, recovery is expected to be only gradual.
This sets private hospital firms up for a double-digit decline in revenue this fiscal - for the first time in over a decade. The players have adopted cost-reduction measures and also pruned capital spending. However, their cash flows are expected to be materially impacted because of high operating leverage.
That being said, the structural drivers remain intact and the sector is expected to post a sharp recovery next fiscal, assuming the impact of the pandemic wanes.
In this context, CRISIL is hosting a webinar on private hospitals, which will cover:
Revenue outlook in the near to medium term
Cost reduction strategies and profitability expectations
Capital spending and credit quality outlook
This will be followed by a panel discussion with industry experts and a Q&A session.
