Hospital stocks surge up to 5% on CGHS rates revision
Shares of Apollo Hospitals, Fortis Healthcare, Max Healthcare, and others climbed up to 5% on Monday.
The boost came after the government announced higher Central Government Health Services (CGHS) package rates for nearly 2,000 medical procedures—set to kick in from October 13.
Investors optimistic about reimbursement rates
This is the first major CGHS price hike in over a decade. For hospitals, it means better reimbursement rates and more incentive to offer cashless treatment.
Accredited hospitals will get standard rates; non-accredited ones will get about 15% less.
Investors are upbeat too—hospitals with lots of CGHS patients like Yatharth and Max could see real gains.
Apollo, Fortis shares gain significantly
The new rates mean an average 25-30% increase across key procedures, according to a preliminary assessment by DAM Capital, which could really help hospital revenues.
On Monday alone, Apollo shares rose 3.7% and Fortis jumped 5%, suggesting positive investor sentiment following the government announcement.