PE Investment on Healthcare Sector


Bhubaneswar: The healthcare system in India has becoming an alluring hub for many Private Equity investments in the last few decades. These investors are mainly focusing on hospitals, especially manufacture of medical instruments, etc. There has been an extremely hefty force of investment for list of the leading Indian hospitals. But there is a perplexity about its benefits being equally susceptible to the stakeholders, employees of the hospitals and the doctors other than the founders only.

Usually these PE investments target the health sectors because the hospitals being invariably hungry for money. PE firms increase their business with the help of various strategic partnerships, knowledge on the particular market or industry and material efficiency, which help to enhance the performance of the hospitals on different stages. The reason and intention of the foreign investors behind these robust investments would be to spread their footprints in India with a whopping profit. Investments in Indian hospitals give the PE investors a fast growth in less time, which would lead them to an immediate return on their investments. In the process of their growth the PE investors make the investee hospitals grow in terms of their performance.

There is a flip side to this phenomenon as well.   The kind of healthcare facilities provided by the investee hospitals and the success and failure of this investment are directly connected with each other. The hospital sectors should have been known as a social and welfare enterprise but due to the PE investment processes and money mindedness this sector are depicted as mere profit making businesses which becomes a matter of ambiguousness. Many of the hospitals in India always attempt to grow rapidly eyeing ample scopes for healthcare in the country.  Simultaneously the hospitals would need to be patient centric and prioritise the patients. At the same time he PE firms also need to be considerate about their own service and its impact on the healthcare enterprises.