Apollo Hospitals is witnessing a strong revival in non-Covid business supported by a significant jump in inpatient (IP) admissions and faster recovery in elective surgeries, which are closer to pre-Covid levels.

“Elective surgeries are close to pre-Covid levels. The volumes and IP admissions are definitely seeing a marked improvement. Broadly, realisation per patient is above pre-Covid levels because of better case mix and patient mix, which are more towards retail, self-pay patients and insurance,” said Krishnan Akhileswaran, Group CFO, Apollo Hospitals.

He was speaking to BusinessLine after the company’s third quarter results last week. Apollo Hospitals on Friday reported a 81 per cent growth in its third quarter net profit at ₹243 crore as against a net profit of ₹134 crore during the corresponding quarter in the previous year. On a sequential basis, the company’s net profit was down from ₹267 crore posted during the second quarter.

Akhileswaran, however, said revenues and net profit appear to have declined on a sequential basis because of a one off spike in vaccination revenue during Q2-FY22. 

“Last quarter, we had ₹215 crore in vaccine revenues, which was one off and for the current quarter, vaccine revenue was only ₹50 crore,” Akhileswaran said, adding, “this is clearly a better quarter than previous quarters. If you take vaccine revenues apart, the overall EBITDA margin of healthcare services have been better.” 

Apollo Hospitals had 8,660 owned hospital beds as on December 2021, of which 7,860 were operational. 65 percent of the operational beds were occupied during Q3-FY22, as compared with 63 per cent occupancy in Q3-FY21. Inpatient Volumes across the group increased by 28 per cent, from 99,197 to 127,441. While the healthcare chain’s Average Revenue Per Occupied bed (ARPOB), excluding vaccination revenue, stood at ₹46,062, 15 percent higher than ₹40,092 in Q3-FY21.

International patient revenue, which was close to 10 percent of total revenues during the pre-Covid times, currently accounts for 2-3 per cent. 

“From Q1-FY23, we must start seeing betterment in international patient revenues. People have started to learn to live with Covid and I think there will be less impact on international patient arrivals as compared with previous waves,” Akhileswaran said.

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