A growing trend in India’s healthcare sector has raised eyebrows as nearly half of the country’s top hospitals are now controlled by private equity (PE) firms. With ownership stakes ranging from 50% to 100%, PE investors are increasingly influencing key decisions, from operational policies to patient care strategies.
According to data compiled from Grant Thornton and various industry reports, prominent hospital chains like Sahyadri, Sterling, Motherhood, KIMS Health, CARE Hospitals, Ujala Cygnus, BMH, HCG, and Indira IVF are now backed by major PE players such as OTPP (Ontario Teacher’s Pension Plan), Arpwood Partners, TPG Growth & GIC, Blackstone, General Atlantic, KKR, and others.
Some of the highest stakeholdings include:
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Sahyadri Hospitals and Sterling Hospitals, each with 100% ownership by PE firms.
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Motherhood Women & Children’s Hospital at 98%.
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KIMS Health at 80%, and CARE Hospitals at 73%.
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Manipal Hospitals and Indira IVF are among those with significant minority stakes.
PE investments have surged as healthcare services expand rapidly across urban and semi-urban areas. Investors are drawn to the sector’s steady demand, technological integration, and rising healthcare expenditure.
However, concerns are mounting over patient welfare and service priorities. With profit-driven firms steering hospital policies, experts fear that healthcare affordability, treatment accessibility, and ethical standards may take a back seat to financial returns.
Industry insiders argue that PE firms bring much-needed capital, infrastructure upgrades, and managerial expertise. But critics warn that long-term care and patient trust could be compromised if commercial interests override healthcare’s foundational mission.
This shift comes at a time when India’s healthcare ecosystem is grappling with staffing shortages, rising chronic diseases, and uneven rural healthcare delivery. As more hospitals move under investor-driven management, stakeholders are calling for stricter regulatory frameworks to ensure quality care and ethical governance.
As the sector continues to evolve, one thing is clear: the future of healthcare in India will be shaped as much by financial markets as by medical expertise.
