Apollo Hospitals Enterprise Limited CC-Mar24.pdf · 2024-05-31
So let me start with Healthcare Services ; so, we are looking at a growth of beyond 15%. This growth will be driven by volume, and we say this with confidence because as we look at part by our network expansion and better asset utilization, we also looked at our payer mix within these markets. There is a significant growth in the penetration of private insurance. And this is enabling people who would, otherwise, go to smaller nursing homes to come into the Apollo system, and I think it's creating access, and this is really driving volumes. Transcript of AHEL Q4 FY24 Earnings Call The second aspect of this is we have been focused on international patients. However, all of the connectivity was not as good last year as it is this year. And with that, international patient revenue is currently at 7% of total revenue. But in Delhi, it's at 20% of total revenue. So, we do hope that this will again move up the occupancy and ARPOB. The third is Centers of Excellence. We've made investments in Onco and neuro, but beyond that we've been able to attract the best doctors in these fields. And with that, we are seeing a growth of about 20%. I think we ended the year with close to INR 2,300 crore of revenue in Onco alone as an example. So, there's also cardiac. So, we've on-boarded 150 new doctors who you know this year is like a cost and really took away from margin. But as we go forward, these doctors have already started contributing, they will contribute. And some of them will be moved into our new hospitals so that we can achieve breakeven faster as we open these new hospitals.
Yes, I think the doctors are important. But second, I think the insurance penetration, including into the tier 1 and 2 cities is really going to improve occupancy. And I have to state at this time that in our metro cities, we're about 70%, average is 69%, for some hospitals already at 80%. So , when they are at 80%, their ALOS is at 4. So, there is a direct correlation between ALOS and occupancy, and therefore, that's why we say that we focus on the volumes. And we're quite sure that in this year, we have budgeted 68% to 70% volume. Transcript of AHEL Q4 FY24 Earnings Call So, we are really focusing on improving volume, improving case mix, and that's why we have on -boarded these doctors. We've also got tie -ups with private insurance that will make sure that it creates access with tier 1, tier 2 cities besides the metro. All of these efforts will result in even higher occupancy.