The healthcare sector has been a preferred destination
for Private equity firms in India.
And amidst the ongoing COVI-19 pandemic, its significance has increases
manifolds. There are a lot of opportunities for hospitals, doctors, and other
healthcare service providers to improve productivity and reduce cost, which can
mean huge benefits for private equity firms. Further, private investment in the
Indian health care industry has surged significantly over the last few years
owning to investors who have been keen on stepping into a large, swiftly growing,
and recession-proof market with high returns.
Top Private Equity Firms
Top private equity firms are investing a huge amount of money
in the Indian healthcare sector ranging from health technology startups to
physician practices. While private investment helps improve in health care
through new delivery models, technologies, and operational capabilities, there
is another side to it - whether private equity investments in healthcare is
good or not for the patients and communities.
These investments by private equity firms offer hospitals and
other healthcare start-ups an alternate source to obtain funds and help them
quality healthcare services. But in some cases, the investors’ strategy appears
to increase revenues by price-gouging patients when they are most vulnerable.
Top Private Equity Firms in India
Though it might be profitable in the short run, private
investor-supported healthcare firms that harm consumers are unlikely to do well
financially in the long term. Unlike many other sectors, the health care sector
is highly regulated and highly sensitive to the reality or appearance of
victimizing the sick and helpless. Consumer outrage leads quickly to government
intervention.
Top private equity firms in India will benefit most by
acknowledging the health care system’s needs and by adding true value to our
health system i.e. giving high-quality services at affordable prices and
exterminating waste. Investors trying to maximize their short-term profits by
raising costs without adding any real healthcare benefits are likely to find
that those strategies are unsustainable.
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