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M&A boom sweeps Gujarats healthcare market –

Ahmedabad. The private sector in Gujarat is undergoing a consolidation wave, with mergers and acquisitions as well as operational tie-ups increasing across cities such Ahmedabad Vadodara, and Surat. Recent deals show a clear shift in strategy among the large hospital chains. They are expanding their cacity and strengthening their regional presence more through acquisitions than by launching new projects. Marengo Asia Hospitals acquired a majority stake in Sunshine Global Hospitals which runs two NABH accredited facilities in Surat, Vadodara, with a total cacity of 400 beds. This expansion in western India is being done by Marengo Asia Hospitals. Marengo’s cacity in Gujarat now exceeds 1,150 beds. This places it in the top five hospital networks of the state. “As our expansion in western India continues, we are becoming one of Gujarat’s largest players,” stated Dr Raajiv Singal, founder member, group managing Director and CEO of Marengo Asia Hospitals. Sources from the industry added that consolidations were driven both by the expansion ambitions and operational pressures of smaller, doctor run hospitals. While the larger players strive for scale, multi-city networks and digital infrastructure, smaller hospitals are faced with increasing administrative costs and regulatory compliance.

Today, running a hospital is more than just providing clinical care. A small business owner said that the cost of accreditation standards, administrative systems, and insurance processes are often too high for smaller businesses to afford. Maxivision’s chairman and managing directors, Dr GSK Velu said that Gujarat is a key growth market. After building a solid base in cities such as Rajkot, Morbi and Jamnagar, we are now evaluating opportunities in major centres. Bhailal Amin General Hospital has acquired two hospitals in Vadodara. One is in the old town and another in Gotri. Both are expected to be operational in the near future. Parul Sevashram (PSH) in Vadodara has acquired hospital operations located in Channi and Padra. “We’re also in discussions with other hospitals”, said Dr Geetika Patel, director of PSH, and vice-president at Parul University.

According to industry experts, corporate hospital chains can benefit from improved financial management and standardised clinical protocols, as well as stronger procurement systems. This will improve efficiency and profitability. Due to their limited administrative abilities, standalone hospitals face difficulties in scaling up. Analysts attribute this trend to Gujarat’s industrial base, increasing urbanisation and the growing demand for advanced healthcare.

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Top private hospitals could drop out of government-sponsored health plans.

Bengaluru. The contribution that government health schemes make to the revenues at India’s largest private hospital chains has declined. This may indicate that private healthcare providers are reevaluating their involvement. Experts believe that payment delays, low reimbursements, and price restrictions may have contributed to the squeeze on profitability. Max Healthcare, Narayana Health and Fortis Healthcare are among the hospital chains that have reported revenue impacts and highlighted challenges with managing government health schemes. Data from the business advisory firm PraxisGlobal Alliance shows that, on average, state-backed healthcare schemes like the Central Government Health Scheme, Ex-Servicemen Contributory Health Scheme, and Central Government Health Scheme, account for 25% of revenues at top private hospitals. Praxis Global Alliance said to ET that government schemes’ revenue share could fall by 3-5 percent in the first quarter FY27, due to de-empanelment of selected employees or bed cs.

CGHS provides coverage for central government workers and pensioners while ECHS offers protection to defence personnel, their families and dependents. Both have set rates for private hospitals that are accredited and both have played a central role in the current dispute.

While the signs of unhpiness have been evident since 2020, the voices from the industry have only become louder over the past year. ollo Hospitals is not directly talking about government schemes because they are a very small part of the business. In the third fiscal quarter of FY26 83% of revenue from inpatients came from cash and insurance patients, according to its management. All other categories including government schemes are a smaller portion of the remaining 17%. A query sent via email to

ollo Hospitals was not answered until the time of publication. Experts believe that there are two pressures: low reimbursement rates and slow payment. Akhil Puligadda is a Praxis Global Alliance practice member in healthcare and life science. He said that hospitals were trying to switch their payer mix to payers who have shorter payment periods. This would help them maintain a healthier working cital. Max Healthcare

‘s losses have been quantified. On its Q3 results call, it estimated a Rs. 200-crore impact on revenue from joining CGHS. It must provide a 30% discount for chemothery drugs under its memorandum.

“We discontinued the supply of drugs when the margin was below 30%. In cases where the margin exceeds 30%, we continue to supply but with lower revenues,” said Yogesh Sareen, chief financial officer, in an earnings conference call. Yogesh Sareen estimated that the current hit was Rs 140 crore, after taking into account GST and oncology effects. Abhay Soi, Chairman of

, said: “What they asked was to sell below the purchase cost. Everyone has stopped using it.

A deliberate backwards move Narayana Health took a conscious decision in December to limit scheme volumes for hospitals in the northern region. This was due to late payments and drug coverage cs. The company stated that “this resulted into a conscious decision to control the volume of schemes”. HealthCare Global was under different pressures. The transition of the Odisha State Scheme pushed down average revenue per patient by 3% in its eastern cluster. A dispute in Andhra Pradesh over a state-sponsored scheme led to a strike of nearly 25 days in Vizag. This caused a disruption in volume for several months due to the long cancer treatment cycles. Manish Mattoo, the chief executive officer of , said that “the impact is manageable and structurally insignificant”. Fortis Healthcare has seen positive results with CGHS after rate revisions, but the hospital network said confusion about drug pricing remains under ECHS. Experts in healthcare say hospital chains rely on high-value treatment and private patients for revenue growth. Madhur Singhal is the managing partner of Praxis Global Alliance. He said that on the financing side some hospitals pledge government receivables for short-term loans from non-banking finance companies (NBFC). Max Healthcare says that the longer-term solution lies in revised rates.

Published on May 7, 2026, at 8:06 AM (IST)

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Abbott’s first-quarter results surpassed Wall Street expectations due to its strength in medical devices and cancer diagnostics

Bengaluru, India: Abbott slightly beat Wall Street expectations for quarterly revenue and profit on Thursday. This was partly helped by the newly acquired cancer diagnostics company. The company has also seen continued growth in its medical devices unit, which is its largest by revenue. According to LSEG data, the company recorded a first-quarter adjusted profit per share of 1,15 cents, compared with analysts estimate of $1,14 cents.

The total revenue for the first quarter was $11.16 billion, which is higher than analysts’ expectations of $11billion. Abbott announced in November that it had agreed to purchase cancer-test manufacturer Exact Sciences for $105.25 per share, in a deal worth up to $23 Billion. This was one of Abbott’s largest acquisitions. It also marked a major push in the ridly growing cancer diagnostics market.

(Reporting and editing by Siddhi Mahtole in Bengaluru, Puyaan Singh in New Delhi)

Published On r 17, 2020 at 7:55 AM IST
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AIIMS Launches Low Cost Advanced Test to Make Epilepsy Treatement Safer

New Delhi – All India Institute of Medical Sciences launched an advanced blood test service that will help doctors better treat epilepsy and reduce side effects related to medicine. The AIIMS Neurosciences Centre’s new facility will monitor levels of levetiracetam, a commonly used antiepilepsy medicine, and lamotrigine in the blood of patients. This is because different doses can affect patients in different ways, and incorrect levels of drugs may not control seizures or even cause toxicity. The testing is free and currently offered by TDM, a specialised test. AIIMS officials have said that the tests could be offered later at heavily subsidised rates in accordance with institute policy. Private laboratories charge between Rs 6,000-Rs 10,000 for similar tests. Experts say the test will help doctors to personalise their treatment by adjusting the dose of medicine according to a patient’s response, his body chemistry, and any side effects. It can also be used to determine when medicines aren’t reaching their effective levels, despite being taken regularly. AIIMS officials have said that the AIIMS facility will improve access to precision based epilepsy treatment. Prof S.B. Gaikwad said that advanced neurodiagnostic equipment is helping to improve the diagnosis and treatment for complex neurological disorders. Prof Ashok Sharma is the professor in-charge of Neurobiochemistry Laboratory. He said that a very small blood sample will suffice for the tests and the reports can be accessed online through e-Hospital or ORS portals. Both OPD and admitted AIIMS New Delhi patients can use the facility. The facility is open to both OPD patients and admitted ones at AIIMS New Delhi, and at the NCI AIIMS Jhajjar Campus. Doctors say that epilepsy patients require years of medication, and frequent monitoring. Affordable access to these tests is important.

Published on May 11, 2026, at 7:10 AM (IST)

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Priyank Kharge, IT/BT Minister, said that Siemens Healthineers was looking for collaboration with Karnataka to support upcoming centers of excellence in healthtech, lifesciences and medical products. Kharge wrote on X that he met with the leadership of Siemens Healthineers to discuss the opportunities for skilling, incubation, and partnerships aligned to the state’s Deeptech push. In a post, the minister stated that “we discussed opportunities to work together on skills, joint incubation, and our upcoming centers of excellence in Lifesciences, Healthtech and Medical Products.” “We also explored ways they could work more closely with Karnataka’s ecosystem of startups under our Deeptech Decade initiative.”

The minister added that it was encouraging to see international companies expanding their presence in the State, backed up by the strong talent base and the innovation ecosystem. Siemens Healthineers has a global cability center (GCC) located in Bengaluru, one of its four global innovation centers. The GCC is focused on data , AI and immersive technologies. The company is actively partnering with deeptech startups, especially in the healthcare industry. Kharge stated that the company provided updates during the meeting on its new Bengaluru campus which will integrate R&D, manufacturing, and training functions. He added that the city hosts a significant portion of Siemens Healthineers’ global R&D, engineering and manufacturing talent. This reinforces its position as a key hub.

Published on r 17, 2026, at 7:59 AM (IST)

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India’s hospital sector enters a new growth cycle while AI and capacity expansion reshape the care: Report

New Delhi – According to a report from brokerage firm Miare Asset Sharekhan, India’s hospital sector is poised to expand over the next decade due in part by structural demand, and a renewed investment cycle. After years of balanced-sheet repair, and measured growth, listed chain hospitals are now accelerating their cacity additions. This signals a shift away from ARPOB driven profitability to volume-driven expansion. The report stated that the industry will continue to attract cital long after FY30 due to the increasing private insurance penetration and the acute bed shortage. The report highlighted that the addressable markets are expanding in multiple directions.

Increased per cita income, increased insurance coverage, aging population, and chronic diseases are all factors that contribute to the growing burden of chronic diseases. India’s Hospital Market has grown from USD 75.3 Billion in FY18 to USD 193.4 Billion in FY25, at a CAGR of 14.4 %. It is expected to reach USD 364.6 Billion by 2034, at a CAGR of 7.2 %.

The Private Hospital segment is expected outpace with a Compound Annual Growth rate of 10.6 percent, fueled by a stronger payer mix and increasing Average Revenue per Occupied bed (ARPOBs). Sharekhan noted that cacity is still an issue for the sector. India has only 1.3 hospital beds for every 1,000 people, while the global average is 2.9. In countries such as Brazil or Vietnam, this figure is even higher at 2.5+. This underpenetration allows for the rid absorption of new beds without a drop in demand. The bed utilisation rate is now above 60% across all major chains, and ollo Hospitals are nearing 70%, which supports both margins as well as returns. The report also stated that payers are increasingly in favor of hospitals. Private Insurance now accounts for 30-43 percent of revenue, compared to 20-25 percent a few year ago. Meanwhile, out-of pocket expenses have been steadily declining. Ayushman Bharat and PM-JAY, two government schemes, are increasing market access and volume, especially in Tier-2 and Tier-3 cities. However, they also put pressure on margins because of fixed package pricing. Hospitals that are more than 65 to 70 per cent occupied can still maintain EBITDA for each bed. Those integrated with the National Health Claims Exchange will be better able to manage 60-120 day claim cycles. The cex cycles reflects this change. Hospitals focused on efficiency, speciality mix and reducing leverage between FY19 and ’24 after aggressive expansion before FY19 drove net debt/EBITDA up to 5.0x. In FY25, a new growth phase begins with significant increases in cex that point to a stronger balance sheet and a cycle driven by volume.

The opportunities lie in filling a 2-million-bed deficit, expanding to smaller towns with lower land and competition costs, and implementing technology such as AI diagnostics and Teleconsultations to improve efficiency. Medical tourism is a growing industry that brings in high-margin revenues.

The challenges persist. These include talent shortages as well as regulatory price cs and the delayed reimbursements of public schemes. Private players contribute 60% of the healthcare infrastructure, and insurance penetration is still only 3.7 percent of GDP compared to a global average of 6-7 percent. This means that there’s a lot of room for growth. India’s hospital industry offers investors and operators a unique combination of scale and necessity, as well as long-term structural advantages.

Published May 11, 2026 07:19 AM IST
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