In talk with Anil Singhvi, Dr Ashutosh Raghuvanshi, MD and CEO, Fortis Health, says occupancy rate has improved

In talk with Zee Business Managing Editor Anil Singhvi, Dr Ashutosh Raghuvanshi, MD and CEO, Fortis Health made a few revelations about where the company stands and what it is looking at going forward. Notably, he revealed that results of Q2 FY21 have been much better than Q1 FY21, progress has been extremely good. Occupancy levels have improved to 57% from 25%. Current Quarter indicates Occupancy rate has been above 60%.

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He also indicated that occupancy related to Corona cases have increased after Diwali Season. 1300 beds have been fixed and allotted to Corona segment by the company. Occupancy for Corona beds had reached to 90%, however, it has reduced to 80% currently. Delhi Occupancy rate is also near 75%-80%. There are sufficient arrangements of beds in case Corona cases increase.

Raghuvanshi said that 25% of the revenue from Diagnostics is from Covid related business. Non-Covid business (normal tests) has returned 100% back to normalcy (pre-Covid levels). Control in Covid cases will impact the profit rate of Diagnostic business negatively which will be offset by non-Covid business, so overall, the revenue will remain unaffected.

The focus of the company is to improve growth of existing hospitals. Company plans to add capacity of another 1300 beds in their existing hospitals in next 2 to 3 years. At this stage, the company is not thinking of new Greenfields instead they want to improve the growth of their existing resources / portfolio and improve the growth of the existing capacities. Company will focus on providing additional services (for operations) to their patients.

Company may plan to add new projects after 2-3 years down the line, in the same metropolitan areas where they are present already, he added.

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He concluded that 8 to 10 of company’s hospitals have witnessed non-Covid business improving gradually and over the next 2 to 3 months, it is expected to return to normalcy.