A lower-than-expected government-prescribed rate of procedures under the Ayushman Bharat scheme
Dear Balbir Singh,
It has been a double whammy for the private-hospital business. A lower-than-expected government-prescribed rate of procedures under the Ayushman Bharat scheme, followed by a pandemic outbreak has robbed the sector of its sheen. With many stocks underperforming the benchmark index, there has been a dwindling investor interest. However, Apollo Hospitals has been an exception, with the stock being an outperformer. What helped it stay resilient? Our first story of the edition takes a closer look.
MARKETS
Apollo banking on digital infrastructure
Lower footfalls and under-utilisation during the viral outbreak resulted in most hospitals reporting sharp revenue decline and operational losses. However, Apollo managed to curtail losses due to a good revenue mix and its hospitals’ locations. While the hospital chain had large physical facilities, just before the pandemic, it developed a digital infrastructure, which helped it tide over the crisis.
ECONOMY
A doomy message for demographic dividend
The time’s running out for India before it can take advantage of a young population. It will have a smaller dependent population and a larger working-age population until 2031. However, this trend would reverse from 2041. India can take advantage of a young populace if those in the working age-group are actually working and have the right education and skills.
PHARMA
Ending the pandemic through concerted testing
Increasing test-kit production and implementing a universal testing strategy is feasible. At USD5 per unit, the cost of testing the world’s population every week would come to around USD2 trillion. That is far less than the pandemic-related loss of global income during this period. The missing pieces are the industrial policies and other government measures to coordinate and steer production.
Regards,
ET Prime Team