The Business Model of Indian Hospitals Simplified.
“We are blessed to be living in a country where the cost of healthcare is the lowest in the world.” ~Dr. Devi Shetty, Narayana Health
A thread 🧵👇
1/ In the Indian healthcare delivery market; the pharmaceuticals market is 20% of the pie. While Hospitals market is 3x that of theirs.
Big opportunity size, however, is it investment-worthy? Let's see.
2/ Before we get into the details:
Do brush up on the different abbreviations associated with the Hospitals & the Pharmaceuticals industry in General, for example ALOS, ARPOB, NABH, etc.
Inpatient (IPD): Need to get hospitalized
Outpatient (OPD): No need to get hospitalized
3/ The hospitals are of basically 3 types:
Primary: For OPD only (no beds), sends to below hospitals for further treatment
Secondary: IPD & OPD in medium-sized general hospitals
Tertiary: Can treat all complex ailments & huge in size, Major listed companies are focused here.
4/ Hospitals can also be classified based on Ownership & management:
Here, the listed companies either are in private or manage hospitals owned by others (Asset light business, due to the very high land prices in metro cities)