Growth in patient footfall, CAPEX influx and consolidation within the sector were the major trends observed in 2023. Speaking to businessline, Dilip Jose, Managing Director and Chief Executive Officer, Manipal Health Enterprise, expects these trends to continue in the coming year.
What were the major trends in the healthcare industry?
We saw around 7-8 per cent growth in patient footfall this year, primarily due to the increased awareness among the masses and the growth in access and affordability. Moreover, 6-8 per cent growth in patient footfall is estimated in the coming year as well. Even the investment cycle picked up with CAPEX influx activities within the sector. Speaking about Manipal, we are currently investing in building four greenfield projects. We see the creation of capacities beginning with investing in long-term capital. In addition, there was a lot of merger and acquisition activity this year across the country, indicating the start of consolidation in the sector. This trend is expected to continue in the next couple of years.
What is the outlook for the sector?
We see the three trends continuing in the coming year as well. We should also be watchful of the new variant of Covid.
What were the major challenges faced by healthcare providers?
Key challenges observed this year and which the sector will continue to struggle with include soaring medical inflation, which touched 14 per cent this year and the shortage of people. Now, medical inflation is not only affecting consumables and the cost of drugs but also the cost of people. There has been an increase in demand for Indian nurses. Meanwhile, each bed typically needs six people—nurses, technicians and managers—all put together. However, the sector continues to struggle with finding professional human resources. While there are no immediate solutions, however, more investment in technology, particularly in the upgrading of medical technology across the sector, will surely be helpful.
Do you think the sector is witnessing a growth curve?
If the patient volume remains sustained, which is in the range of 7-8 per cent, we should see a 15 per cent increase in revenue without assuming any significant price increase.