“VIP occupancy” is one of the three reasons Apollo Hospitals Enterprises has cited for the steep drop in profits during the third quarter of 2016-17.
Late Tamil Nadu Chief Minister J Jayalalithaa was admitted to Apollo Hospitals, Chennai, from September 22, 2016 to December 5, 2016, when she passed away.
According to an Apollo statement, the Chennai cluster was hit by one-off events — demonetisation, the ‘VIP admission’ and Cyclone Vardah.
The healthcare major’s standalone profits crashed 40 per cent to ₹73 crore for the third quarter (₹122 crore in the same quarter last year). Standalone revenues, however, increased 18 per cent to ₹1,681 crore compared to ₹1,425 crore in the previous period.
A senior Apollo executive said the “VIP occupancy” and the ban of high-value currency notes did hit the Chennai cluster’s occupancy and profit levels.
Occupancy was down 60 beds at 906 by the end of September 2016 compared with 969 beds in September 2015, and by 40 beds between October and December.
He said: “People did not want to come in because of the heavy security arrangements when the VIP was admitted there...
“Over 35 per cent of patients in Chennai come from other States like Assam for medical help. Since they are cash dependant, the impact was felt more in Chennai than other cities.”
He said the company expects to recoup the loss in the quarter ending June 2017.