New Delhi, Nov 11 (NationPress) The private hospital sector in India is on track to achieve $202.5 billion by 2030, a significant increase from the projected $122.3 billion in 2025. This growth is driven by factors such as rising demand, increased private investment, supportive government initiatives, and advancements in technology, including AI and telemedicine, according to a report released on Tuesday.

The report by credit rating agency Brickwork Ratings highlights that India requires 2.4 million additional hospital beds, translating to a need for 2 billion square feet of healthcare infrastructure.

In Q3 2025, the sector witnessed 72 deals amounting to $3.5 billion, marking a remarkable increase of 166 percent in deal value compared to the previous quarter.

Furthermore, 2024 saw significant mergers and acquisitions (M&A) in India's hospital sector, showcasing robust investor interest and a strategic focus on expanding healthcare services nationwide, the report noted.

Rajeev Sharan, Head of Research at Brickwork Ratings, stated, “The credit rating outlook for the private hospital industry in India is Positive due to strong demand, solid financial performance, effective risk management, and aggressive expansion strategies by major hospital chains.”

The report also indicates that India’s medical tourism market, valued at $8.7 billion in 2025, is projected to nearly double to $16.2 billion by 2030, supported by affordable, high-quality medical care and improved visa processing.

Ranking 10th on the Medical Tourism Index, India welcomed 7.3 million foreign patients in 2023-24, with increasing demand for specialized treatments and strong international collaborations fueling growth.

Leading hospitals have reported an increase in ARPOB (average revenue per occupied bed), which currently varies between approximately Rs 38,000 to over Rs 74,000 per bed daily, as noted in the report.

ARPOB is anticipated to rise in the coming years due to improvements in specialty care and billing practices, alongside growing demand for high-value procedures.

Moreover, the report predicts that the average length of stay (ALOS) will remain low at around 3.4 days through 2030, enhancing bed utilization. This reduction in ALOS is attributed to ongoing operational enhancements, technological improvements, and quicker patient turnover.