How Middle East crisis is affecting hospitals in India
What's the story
The ongoing conflict in the Middle East has prompted Indian hospital chains to seek new sources of medical travelers. Apollo Hospitals, Fortis Healthcare, Manipal Hospitals and HealthCare Global Enterprises are among the major players treating a large number of international patients from this region. These patients mainly come for cancer treatment, heart surgeries, transplants and orthopedic procedures from countries like Oman, Saudi Arabia, Iran and Yemen.
Revenue impact
Manipal Hospitals to focus on Africa, Southeast Asia
Karthik Rajagopal, COO of Manipal Hospitals, said the Middle East contributes around 20-25% to their medical value travel (MVT) revenues. He noted that a large number of patients come from countries like Yemen and Oman. If disruptions continue for a long time, this corridor could see some temporary moderation in volumes. In such scenarios, they usually diversify their focus toward Southeast Asia, Africa and certain developed markets.
Strategic shift
Fortis Healthcare eyeing new markets
Fortis Healthcare, which gets most of its international patients from Iran and Iraq, has been seeing five to six new patients daily from the region before the conflict escalated. Ganapati Hegde, cluster head for international markets at Fortis Healthcare, said they are planning fresh market research and new market development. He added that they will likely focus more on Africa and Europe due to long waiting times in those regions.
Market dependency
MVT industry heavily reliant on Middle East
Aryaman Tandon, Managing Partner for healthcare and life sciences at Praxis Global Alliance, said India's $7-8 billion MVT industry heavily relies on patients from the Middle East. He added that India's cost advantage is a key driver with major surgeries being 60 to 80% cheaper than in the region. The ongoing conflict has disrupted airspace and closed vital flight paths across the Gulf region.
Profitability concerns
Temporary disruption can impact revenue mix
Middle Eastern patients usually occupy premium rooms, undergo complex procedures, and pay in foreign currency. This makes them highly profitable for Indian hospitals. Salil Kallianpur, MD of ARKS Knowledge Consulting, said even a temporary disruption can materially impact the revenue mix as a small number of such patients contribute disproportionately to profits. The 500-plus bed KIMSHEALTH Al-Shifa super specialty hospital expects its international revenue could take a hit if the conflict continues.