Healthcare clocked $30 billion investment in 2 years, says report

India’s healthcare and pharma sector recorded 594 merger and acquisition (M&A) and private equity (PE) transactions worth over $30 billion in deal value between 2022 and 2024, with the hospital sector emerging as a preferred investment destination, according to a joint report by consultancy firm Grant Thornton Bharat and the Association of Healthcare Providers of India (AHPI).

 

The report states that hospitals in India undertook M&A deals worth $6.74 billion and attracted $4.96 billion from private equity (PE) investors, accounting for 40 per cent and 38 per cent of such deals between 2022 and 2024, respectively.

 

During the period, hospitals also raised $466 million through initial public offerings (IPOs).

 

 

“Valuation multiples range between 20 and 30 times earnings before interest, tax, depreciation, and amortisation (Ebitda), particularly in high-demand specialties such as oncology, cardiology, and mother-and-child care,” the report stated.

 

Similarly, foreign direct investments (FDI) in healthcare and diagnostics reached $3.2 billion during the two-year period. Moreover, in FY24-25 until September, hospitals and diagnostics players generated $931.46 million through FDI inflows.

 

Highlighting the key drivers of investment, the report stated that consolidation in multispecialty hospitals and technology integration underscore efforts to scale operations and strengthen market presence.

 

Similarly, investor focus on single-specialty hospital segments such as nephrology, in-vitro fertilisation (IVF), and oncology has attracted $1.4 billion in PE investments over two years due to their asset-light, scalable models.

 

Commenting on the findings, Bhanu Prakash Kalmath S J, partner and healthcare industry leader, Grant Thornton Bharat, said that India’s healthcare landscape is being reshaped by shifting demographics, increasing cases of chronic lifestyle diseases, and a rising emphasis on preventive care and quality healthcare services.

 

These structural shifts, coupled with growing insurance penetration and post-pandemic resilience, are redefining patient expectations and healthcare delivery models.

 

“Simultaneously, investor interest in value-based care models and efficiently run hospitals continues to grow, supported by strong market fundamentals and a favourable investment climate,” he added.

 

Highlighting the urban-rural bed disparity as a future challenge for the sector, Girdhar Gyani, director general, AHPI, said that 60 per cent of hospital beds are concentrated in metro cities, while 70 per cent of the population resides in non-metro regions.

 

“The increasing cost of medical treatments and high out-of-pocket expenditures further necessitate innovative financing models," he added.

 

He stated that addressing these concerns through enhanced medical training programmes, incentives for rural healthcare expansion, and digital health adoption will be pivotal in ensuring equitable access to care across all regions of India.