Covid-19 impact: Hospital stocks take a hit as number of patients falls

While elective surgeries that form 60-70 per cent of volumes are getting postponed, revenue from medical tourism too, is at a standstill

Hospital operators, which have always been considered steady revenue and cash generators, have not been spared by the pandemic.

 Stocks of Apollo Hospitals, Fortis Healthcare, Narayana Hrudayalaya, and Aster DM, which were trading near their all-time highs in January and February, have corrected by 23-42 per cent since. 

Investor sentiment has been significantly hit after the outbreak and the lockdown is hurting business prospects of private health care services providers even more.

Visits to doctors and hospitals by people have declined significantly during the lockdown. While outpatient department (OPD) services are suspended, elective surgeries —ones planned in advance (excluding emergencies)