Max Healthcare reported a 20 per cent year-on-year (Y-o-Y) increase in revenue to Rs 1,543 crore in the June quarter, while Fortis Healthcare saw a 12.2 per cent increase in revenue to Rs 1,859 crore.
Similarly, Apollo Hospitals Enterprise reported a 15 per cent Y-o-Y increase in revenue for Q1FY25, amounting to Rs 5,086 crore.
This growth comes after specialties such as oncology, gastroenterology, neurosciences, renal sciences, orthopaedics, and cardiac sciences recorded notable increases across all hospital networks in Q1FY25, contributing significantly to the overall rise in revenues.
According to figures released in their investor presentations, cardiac sciences and oncology (with radiotherapy) led the revenue growth, with Fortis reporting 22 per cent and 12 per cent Y-o-Y increases in these specialties, respectively, while Max reported 7 per cent and 21 per cent increases in the same areas.
These two specialties also accounted for around 36 per cent of Apollo Hospitals’ revenue mix for the June quarter.
Highlighting the importance of growth in high-end specialties, Ashutosh Raghuvanshi, managing director (MD) and chief executive officer (CEO) of Fortis Healthcare, stated that the shift towards high-growth specialties has been instrumental in driving overall revenue growth.
“The six main specialties—oncology, gastroenterology, neurosciences, renal sciences, orthopaedics, and cardiac sciences—consistently contribute 63 per cent to Fortis’s hospital business revenues,” he added.
Similarly, Apollo Hospitals and Max Healthcare’s top six specialties contributed 70 per cent and 73.1 per cent to their inpatient revenues in the June quarter, respectively, according to data released in their investor presentations.
The robust growth in key medical specialties has also led to a rise in the Average Revenue Per Occupied Bed (ARPOB) per day and increased occupancy rates for these hospital networks.
Speaking in an investor call for the June quarter, Abhay Soi, chairman and managing director of Max Healthcare, said that ARPOB per day for the quarter improved to Rs 80,100, growing by 7 per cent Y-o-Y, with the improvement largely due to growth in oncology, orthopaedics, and renal sciences, as well as an increased number of robotic procedures.
“This was coupled with tariff revisions for self-pay, insurance, and institutional segments,” he added.
Commenting on the same, Raghuvanshi said Fortis’s 9.7 per cent Y-o-Y rise in ARPOB can be attributed to the high proportion of complex procedures, particularly in high-end specialties, and the introduction of new medical technologies.
“Fortis has focused on enhancing its service offerings, including a higher proportion of complex and specialised procedures, which naturally command higher prices. The company has also seen a rise in patient inflow for advanced treatments, particularly in specialties like oncology and neurosciences, which are higher-revenue segments,” he said.
“Additionally, there has been a notable increase in key surgical procedures, particularly in neurosciences and robotic surgeries, which have seen Y-o-Y growth of 23 per cent and 59 per cent, respectively,” Raghuvanshi said.
Hospitals are also planning to pursue growth in these specialties, which will ultimately lead to higher ARPOB and Earnings before Interest, Tax, Depreciation, and Amortisation (Ebitda) per bed margins.
Speaking on Max’s plans during an investor call, Yogesh Sareen, senior director and Chief Financial Officer (CFO) of Max Healthcare, said, “Our focus is to move up the value chain. So, we will be pursuing liver transplants, oncology, neuro, cardiology, cardiac surgeries, etc.”
Commenting on Fortis’s plans to increase such procedures, leading to higher ARPOB, Ashutosh Raghuvanshi said that given the current trends, such as the rising demand for high-value, complex procedures, the ongoing expansion of their specialty mix, and the integration of advanced medical technologies, they expect ARPOB to maintain an upward trajectory.
“We are optimistic that these drivers will enable Fortis to achieve strong growth in ARPOB by the end of FY25, further strengthening our financial performance,” he added.
