India plans to add over 22,000 hospital beds in private hospitals within the next 3–5 years. The report highlights that hospitals will triple the 4,000 beds added between FY19-24. Currently in a consolidation phase, most hospitals aim to expand and capitalize on growth opportunities after benefiting from low capex between FY19-24.

New Delhi: The increasing prevalence of lifestyle diseases and rising demand for affordable healthcare are driving the growth of India's healthcare market. A recent HSBC Global Research report reveals that seven listed hospitals will add 14,000 new beds over the next 3-5 years. In total, private hospitals will introduce 22,000 new beds.

The report emphasizes that even with these planned additions, hospitals will not face an oversupply of beds. India will continue to see a strong demand for hospital beds due to the rise in lifestyle diseases and demand for affordable healthcare services. The World Health Organization (WHO) report notes that India has only 16 beds per 10,000 people, which is considerably lower than most developed and emerging markets.

The report explains that as India's population ages, healthcare needs will grow due to increasing healthcare insurance penetration, rising income levels, and a higher incidence of lifestyle-related diseases. "We believe demand will remain robust, driven by demographic shifts like an aging population and increasing lifestyle diseases, combined with growing insurance coverage and income levels," the report states, predicting that new beds will be absorbed easily.

India needs to add 100,000 more beds over the next 5-7 years to meet healthcare demand, which is growing due to the rise in non-communicable diseases (NCDs) like diabetes, cardiac disorders, and cancer. Seven listed hospitals have already committed to investing in projects that will add more than 22,000 beds within the next 3-5 years.

The report also underscores India's increasing popularity as a medical tourism destination, thanks to the availability of high-end clinical procedures at significantly lower costs than in countries like the U.S., Singapore, Korea, and Thailand. The report cites Ministry of Tourism data, noting that medical tourism in India grew from 0.18 million in 2014 to 0.73 million in 2024.

Hospitals in India have experienced a 7-15% increase in average revenue per occupied bed (ARPOB) between FY2019-24. Most hospitals reported a rise in occupancy rates post-COVID-19. With advancements in operational efficiency and technology, hospitals expect their revenues to grow at a mid- to high-single-digit rate in the coming years. Additionally, listed hospitals in India saw their share prices increase by 55–20% over the past three years (ANI).