Brace yourselves, treatment in private hospitals may get costlier

Apollo and Fortis are mulling increasing their pacakage rates

Private hospital chains including Apollo and Fortis might revise their package rates by the end of this year or in 2022, Economic Times reported, as a result of which, their medical services may become more pricey.

Apollo and Fortis are mulling increasing their package rates by 5-10 per cent amid rising overhead costs, according to the publication.

"Though we are a large multispeciality hospital chain with significant overheads, we continue to treat patients at the same rates since 2019 despite non-Covid revenues being affected by the pandemic, rising manpower costs, and other operating costs," a Fortis Healthcare spokesperson was quoted saying by The Economic Times. "We are evaluating the situation and will decide about package tariff correction at an appropriate time", they added.

According to officials, both private hospitals are 5-6 per cent away from complete business recovery to pre-Covid levels.

"The cost of sanitation, consumables, human resources and general inflation are eating into our margins, so at some point, we have to pass on the cost," Group Chief Financial Officer of Apollo Hospitals Krishnan Akhileswaran is quoted as saying in the report.

While a 5 per cent average yearly increase is not out of the ordinary, it may be a little higher this time, Akhileswaran further explained.

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