homehealthcare NewsOccupancy levels normalising at 70 73%; Max Lab seeing traction in non COVID biz: Max Healthcare
Occupancy levels normalising at 70-73%; Max Lab seeing traction in non-COVID biz: Max Healthcare
Abhay Soi, CMD, Max Healthcare, on Thursday, said that occupancy levels are normalising at around 70-73 percent. On Max Lab, he shared that the segment is seeing traction in non-COVID business. He also mentioned that the segment added a lot of channel partners recently.
Abhay Soi, CMD, Max Healthcare, on Thursday, said that occupancy levels are normalising at around 70-73 percent. He also mentioned that occupancies in some hospitals are in fact beyond 80 percent. Additionally, he explained that elective surgeries saw a reduction due to Omicron wave.
"In January, when the Omicron wave came in, we didn't see too many hospitalizations, but we saw a reduction in elective surgeries. So the occupancies that come down to 60 percent. Since the fear of Omicron has subsided, the numbers have gone up and as we speak, we are at about 70-73 percent occupancy levels. Things seem to be easing back to normalcy," he said.
On Max Lab, he shared that the segment is seeing traction in non-COVID business.
"As far as Max Lab is concerned, we've been doubling down in this business. We've added more and more channel partners, about 40 percent in the last two quarters alone. As COVID-19 businesses came down, we've seen a massive buildup as far as the non-COVID business is concerned. So it is seeing very good traction. In the last two quarters, to a base of 440 channel partners, we have added another 260," he said.
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On its home care segment, Soi said that the business is now profitable.
"We started home care business about five years ago, and we got 650 people doing this business; it's amongst the largest, if not the largest home care business in the country as we speak and yet perhaps, the only profitable one," he said.
On acquisitions, he said that they announced 4 of them. Max Healthcare is looking to double its capacity in 4 years and for this purpose, the company will use less than 50 percent of its internal accruals.
"All of these acquisitions that we have announced over the last six months - that's for acquisitions, essentially - that along with the two imbedded brownfield projects that we have, should almost double our capacity over the next four years. However, the most interesting part is that we're going to be using less than 50 percent of our estimated internal accruals over the next four years to fund this entire brownfield, Greenfield build-outs that we are doing. That leaves us with about half of our internal accruals free cash flows, as well as our entire balance sheet," he explained.
Also Read: Pharmacy biz growing at 20%; will announce investors for Apollo HealthCo by March: Apollo Hospitals
Watch the video for the full interview.
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