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Further Consolidation of Healthcare Sector in 2019

Healthcare sector is expected to witness further consolidation in 2019. The tightening of regulatory environment is set to make it difficult for small players to stay afloat in a highly competitive market. This year, industry players expect more partnerships between public and private sector in the healthcare space, which they feel is ‘under-invested’. 

After months of intense competition, Malaysia’s IHH Healthcare has scalped 31.1 per cent stake in Fortis for Rs 4,000 crore and is in process of taking another 26 per cent stake. In other development, KKR-backed hospital management firm Radiant Life Care has announced acquisition of a majority stake in Max Healthcare through a merger to create a combined entity valued at Rs 7,242 crore. Apart from these, we will probably see the consolidation of health care by a few large players like other fields in business.

Government actions like demonetisation, GST, tightening of cash transactions and regulatory issues have certainly impacted some of the smaller establishments making them unviable. The future healthcare will be a low-margin venture, high-volume, and inching towards universal health care with an active role played by the government. It will also be a highly regulated accountable system and people and organisations that do not adapt to this new philosophy will perish. Taking these circumstances into consideration, consolidation of health care by large chains and closure of some individual-driven smaller facilities is likely to happen.

We are pleased to announce 3rd Healthcare Digital Innovation Summit 2019 on 15th Feb 2019 at Ahmedabad. The Healthcare IT Summit will be the premier conference and expo for exploring innovations in eHealth, mHealth, TeleHealth and IT implementation in Government organization and hospitals.

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