The Rise of Single-Specialty Hospitals in India

With traditional multi-specialty hospital chains nearing deal saturation, investors are increasingly shifting their focus on single-specialty hospitals (SSHs), which are fast emerging as the next growth frontier in India's healthcare landscape.

Investor Confidence and Deal Activity

Offering focused care, operational efficiency and faster scalability, SSHs have become particularly attractive to private equity (PE) firms. This shift is reflected in deal activity: SSHs now account for over half of all hospital transactions by volume, supported by $2.3 billion in PE investments over the past three years.

Key Transactions and Growth Projections

The year 2023 saw the highest deal value of $1.2 billion, largely driven by landmark transactions such as BPEA EQT's investment in Indira IVF and Quadria's strategic investments in Maxivision and NephroPlus. Projected to more than double to $9 billion by 2028, organised single-specialty networks offer compelling economics.

Specialties Driving Growth

The segment is growing at a robust 24% annually - outpacing the 15-17% growth seen in multi-specialty counterparts -indicating strong investor confidence. Key specialties driving this growth include, in vitro fertilisation (IVF), women's and child care, eye care, nephrology, and oncology.

Global Phenomenon and Future Outlook

The focus on single-specialty hospitals is a global phenomenon, reflecting a broader shift towards specialised, efficient healthcare delivery. "We strongly believe that one of the key prescriptions to bridge India's demand-supply gap in healthcare delivery sits with SSH enterprises," says Vishal Bali, executive chairman Asia Healthcare Holdings.