Private hospitals in India demand timely reimbursements under nation’s largest health insurance scheme

India's Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (PM-JAY), the largest government-funded health insurance scheme, has enrolled 27,742 hospitals, 43% of which (11,973) are private hospitals, with 1.3 million beds. However, private hospitals are struggling financially under the scheme, citing delays and inadequate reimbursement rates. Introduced in 2018, PM-JAY aims to provide Rs. 5 lakh (~$6,100) per family annually for secondary and tertiary care hospitalisation, covering pre-hospitalisation and 15 days of post-hospitalisation expenses including diagnostics and medicines. Reports indicate that many private hospitals are lately reluctant to admit patients despite having available beds, primarily due to delays in government reimbursement of insurance claims.

KKR acquires Kerala-based hospital fuelling surge in India’s healthcare PE deal activity

India saw a ~35% drop in private equity and venture capital deal activity in 2023, with investments falling from $62 billion in 2022 to $39 billion. However, healthcare investments hit a record $5.5 billion, driven by a tripling of provider investments, multi-specialty provider consolidation, and the rise of attractive single-specialty assets. Reflecting this trend, on July 1, the US private equity firm KKR has announced an acquisition of a controlling stake in Baby Memorial Hospital (BMH), a multi-specialty hospital chain in Kerala, India.

Top Indian university joins forces with Roche Diagnostics amid thriving diagnostic market

The Indian diagnostic market, predominantly driven by private players, is facing intense competition. Valued at approximately $9.59 billion in FY21, the market is projected to grow to $25 billion by FY28. In recent news, the Manipal Academy of Higher Education (MAHE), one of India's top private universities, signed a Memorandum of Understanding (MoU) with Roche Diagnostics India, a leading biotechnology company, to establish a Centre of Excellence (CoE).

Paras Health expected to file for $120 million IPO

Northern India-based hospital chain Paras Health is set to file a Draft Red Herring Prospectus (DRHP), or offer document, with the Securities and Exchange Board of India (SEBI) by the end of June for an initial public offering (IPO) worth INR 1000-1200 crore (~$120-144 million) according to India’s The Economic Times.

KKR makes AI investment in India’s Infinx Services

AI continues to make inroads in healthcare. Digitalisation and the use of AI were prominent topics in nearly every panel discussion at the recent HBI 2024 conference, held from June 10 to 12, with 580 delegates from 40 countries in attendance.

India’s journey from a nurse-surplus country to nurse-deficient country

The world is facing a major healthcare workforce crisis. The effects of shortages are already being felt across both developed and developing countries. By 2030, the World Health Organisation (WHO) predicts a shortage of 10 million health workers globally, predominantly in low and lower-middle-income countries.

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