Private hospital chains push back on proposed cap for room charges
A Parliamentary panel has proposed capping private-hospital room tariffs at nearby three-star hotel rates. Apollo Hospitals, Fortis, Max and Paras Healthcare-backed industry body NATHEALTH say the measure could constrain investment, urging tax and insurance reforms instead.
What happened
Apollo Hospitals · Indian private hospital chains oppose a Parliamentary panel proposal to cap room charges at local three-star hotel tariffs, arguing it could
Key facts
- Room charges proposed to be capped at the average tariff of three-star hotels nearby
- Apollo average revenue per admission rose 8%
- Apollo price increase: 4%
- Apollo consolidated net profit: ₹136 crore in FY21; ₹1,505 crore in FY25; ₹1,493 crore in FY26
- Apollo Q1 FY27 PAT: ₹581 crore, up 34%
- Fortis profit: ₹789.95 crore FY22; ₹632.98 crore FY23; ₹645.22 crore FY24; ₹809.38 crore FY25
- Max Healthcare PAT: ₹331 crore FY22; about ₹1,631 crore FY26; cumulative profits about ₹5,716 crore
Why this matters
Potential tariff restrictions could lower the attractiveness of premium-hospital acquisitions and shift deal focus toward scalable networks, insurance partnerships and lower-cost care formats.