Hospitals grow bigger for better health amid falling margins, rising costs

There are long-term gains to be had for bigger players and that explains the interest from new investors

A rash of hospital deals is set to remake India's fragmented healthcare landscape, with many old players exiting the market and new ones taking their place.  

Just last week, private equity firm KKR announced plans to buy a 49.7 per cent stake in Max Healthcare from South Africa's Life Healthcare for $293 million. The deal, struck at a premium of 26 per cent, would give KKR joint control of the 2,500-bed Delhi-based hospital chain along with its founder-chairman Analjit Singh. 

With this, KKR has overtaken Bengaluru-based Manipal Hospitals in terms of the number of beds. The PE fund, which