New Delhi: Apollo Hospitals reported a 60% rise in consolidated net profit to Rs 245 crore in the quarter ended December 31, driven by better payer mix and higher volumes in the hospital business as well as stronger pharmacy and diagnostics operations.
The ‘cashless everywhere’ initiative launched last month will not affect the hospital’s business for now, its chief financial officer said. Krishnan Akhileshwaran told TOI in a conversation after the results on Thursday.
Consolidated revenues grew 14% year-on-year to Rs 4,851 crore, healthcare (hospitals) grew 12% to Rs 2,464 crore, Apollo Healthco (omnichannel pharmacy) grew 17% to Rs 2,049 crore, and Apollo Health & Lifestyle (Diagnostics and Retail) revenue grew 8% to Rs 338 crore.
“Apollo is neutral towards it because we are completely cashless in all our hospitals. It is more at a fragmented level – in nursing homes and smaller hospitals, where cashless facility was not there, and many of them were working on reimbursements. “There will be a change in the way people access healthcare.” Akhileshwaran Said.
“Our payer mix is 50% from retail or out-of-pocket payments, while the rest is from insurance,” he said.
This is the right step in the right direction. He said that insurance companies will have to ensure that payment is made between 15-30 days.
Medical value tourism now contributes 7% to hospital turnover, 4% more than pre-Covid levels. The company plans to take it to 10% in the next few years.
The average ARPOB (average revenue per bed) of the hospital chain present in metros and non-metros is Rs 56,000, with an average length of stay of 3.3 days.
The average ARPOB is Rs 69,000 higher than metropolitan hospitals.
About 30% of the hospital’s business comes from non-metros.
During the quarter, Apollo Health Company, which has a pharmacy delivery and digital healthcare services platform, Apollo 24/7, achieved EBITDA break-even. As of December, it had 5,790 stores, with digital business contributing about 10% of sales. The group will continue to focus on an omni-channel strategy.
GMV He said the investment on digital this year is around Rs 2500-3000 crore, the company plans to double it in 12-18 months.
The ‘cashless everywhere’ initiative launched last month will not affect the hospital’s business for now, its chief financial officer said. Krishnan Akhileshwaran told TOI in a conversation after the results on Thursday.
Consolidated revenues grew 14% year-on-year to Rs 4,851 crore, healthcare (hospitals) grew 12% to Rs 2,464 crore, Apollo Healthco (omnichannel pharmacy) grew 17% to Rs 2,049 crore, and Apollo Health & Lifestyle (Diagnostics and Retail) revenue grew 8% to Rs 338 crore.
“Apollo is neutral towards it because we are completely cashless in all our hospitals. It is more at a fragmented level – in nursing homes and smaller hospitals, where cashless facility was not there, and many of them were working on reimbursements. “There will be a change in the way people access healthcare.” Akhileshwaran Said.
“Our payer mix is 50% from retail or out-of-pocket payments, while the rest is from insurance,” he said.
This is the right step in the right direction. He said that insurance companies will have to ensure that payment is made between 15-30 days.
Medical value tourism now contributes 7% to hospital turnover, 4% more than pre-Covid levels. The company plans to take it to 10% in the next few years.
The average ARPOB (average revenue per bed) of the hospital chain present in metros and non-metros is Rs 56,000, with an average length of stay of 3.3 days.
The average ARPOB is Rs 69,000 higher than metropolitan hospitals.
About 30% of the hospital’s business comes from non-metros.
During the quarter, Apollo Health Company, which has a pharmacy delivery and digital healthcare services platform, Apollo 24/7, achieved EBITDA break-even. As of December, it had 5,790 stores, with digital business contributing about 10% of sales. The group will continue to focus on an omni-channel strategy.
GMV He said the investment on digital this year is around Rs 2500-3000 crore, the company plans to double it in 12-18 months.
