India’s hospital sector is booming, making up about 80% of the $638 billion healthcare market in 2025 and expanding at an 8% CAGR. The country has over 31,800 hospitals and faces growing demand driven by rising population and chronic diseases, yet a shortage in bed capacity presents both challenges and opportunities for further investment.
Today, hospital stocks rallied sharply following the government’s revision of CGHS rates for nearly 2,000 medical procedures, effective October 13. The update addresses long-standing concerns where hospitals, due to outdated 2014 rates, often denied cashless treatment, forcing patients to pay upfront and face delayed reimbursements. This move is expected to improve hospital cash flows, enhance patient access to timely care, and strengthen investor confidence in healthcare equities.
Furthermore, Hospital rates under CGHS have been restructured for the first time since 2014, introducing a multi-dimensional system based on accreditation, hospital type, city tier, and ward entitlement. NABH-accredited hospitals set the base rate, with non-accredited facilities at 15% lower. Tier-2 and tier-3 cities will have rates 10–20% below tier-1, while general ward rates drop by 5%, ensuring fairer, more differentiated pricing.
The CGHS rate revision is expected to significantly boost hospital finances, improving receivables and cash flows. DAM Capital notes an average 25–30% hike across key procedures. Listed hospitals with high government scheme exposure Fortis, Max, Narayana Health, and Yatharth—stand to gain the most, while Apollo, Max, Global Health, and Narayana Health may also see positive market reactions.
Also read: Infra stock under ₹100 jumps 8% after receiving work orders under PM-eBus Seva scheme
Here are the hospital stocks in focus:
| Company Name | CMP | Increased % |
| Apollo Hospitals Enterprise Ltd | 7,632.50 | 2.46 |
| Max Healthcare Institute Ltd | 1,120.50 | 5 |
| Global Health Ltd | 1,358.40 | 2.23 |
| Narayana Hrudayalaya Ltd | 1,842.30 | 5.16 |
| Yatharth Hospital & Trauma Care Services Ltd | 778.65 | 4.52 |
| Fortis Healthcare Ltd | 1,046.05 | 6.73 |
Written by Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
