Lets say the government and court allows Hospitals to even charge higher than CGHS rates as hospitals will not bow down easily. They will use different techniques to maintain premium pricing power.
Even then margins will drop. Ebidta margins of 30%+ and 20%+ NPM will be unsustainable. Look to it dropping to more sustainable rates. 10-15% NPM are global average. So, it would settle there.
But since the government depends on high FDI and investments from PE and SWF capital to boost the sector, it’s also possible it may drop just a few points and not drastically.
All depends on how seriously government manages the contradictons.
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