The founder of India’s one of the leading hospital chains, Apollo Hospitals Enterprise Limited (AHEL), Dr Prathap C. Reddy, calls his hospital  a “7-star” facility. He says he uses only the best medical infrastruc…

The founder of India’s one of the leading hospital chains, Apollo Hospitals Enterprise Limited (AHEL), Dr Prathap C. Reddy, calls his hospital  a “7-star” facility. He says he uses only the best medical infrastructure, and that “life” has no cost and deserves the best care. But, the top quality care comes at a premium price. The share of healthcare delivery in India is currently dominated by the private sector. More importantly, the treatment in these facilities is roughly five to ten times higher compared to the government facilities. The Parliamentary Standing Committee on Health and Family Welfare, in its 176th report, tabled in the Parliament in August 2026, states that the average cost of hospitalisation is Rs 50,508 in a private setup, compared to Rs 6,631 in a government centre.AHEL’s latest annual report, for the year 2025-26, reflects a similar picture. It stated that the average per-inpatient revenue at the hospital was Rs 1,78,434 in the financial year (FY) 2026, a nine per cent increase when compared to the previous year. Moreover, it has increased each year consecutively since 2024.Harvard stayed in this Andhra Pradesh village to study Apollo’s ‘Total Health’ modelPrivate hospital room cost must not exceed 3-star hotel room tariff in cities: Parliamentary panelApollo Hospitals’ average revenue per in-patient, from FY 2022 till FY 2026On the contrary, the average length of stay at the hospital has remained nearly the same over the last four years. It saw a minimal decrease from 3.32 days in FY 2025 to 3.17 days in FY 2026.Meanwhile, AHEL reported consolidated profit after tax (PAT) of Rs 1,942 crore in FY 2026, a 34 per cent increase compared to the previous year.The increasing profit raises a question: How much of Apollo’s increase in average revenue reflects medical inflation, and how much reflects expensive treatments?When DH asked if the continuously increasing cost of care in private hospitals was making it unaffordable for the majority population, Dr Reddy said it is untrue.Citing an example, Dr Reddy said, “When we started coronal vapour surgery, it used to cost 50,000 US dollars. In India, we started with Rs 2,00,000. Today, after 43 years, it costs around Rs 4,00,000 to Rs 5,00,000. Taking inflation into account, we have increased prices by six per cent every year. Meanwhile, inflation is always nine to ten per cent.”He further added that technology is more expensive now and he only believes in using the best quality of infrastructure. “I never use second-class technology.”The Indian healthcare sector has also seen tremendous growth due to investments by private equity (PE). The influx of capital has facilitated the expansion of infrastructure and improvement in services, particularly in urban and semi-urban areas. However, this transformation raises critical concerns regarding equal healthcare access, rising health costs, and the potential commercialisation of healthcare services.A 2025 review article, published by Global Health Journal, analysing PE’s impact on Indian healthcare stated, “PE investments have led to increased privatisation, rising healthcare costs and a focus on profit-driven models. Despite expanding infrastructure, access to quality healthcare remains inequitable, particularly for marginalised and rural populations.”Commenting on rising PE investments, Dr Reddy said capital investment is needed for hospital growth. The profits made are utilised for research and innovation, corporate social responsibility (CSR) activities, and future expansion.(Dr Prathap C. Reddy was speaking to select journalists on the sidelines of Apollo Hospitals’ “Total Health” initiative in Aragonda, Andhra Pradesh)

Source: Deccan Herald