Eye on India: Merger pill for healthcare

As suitors line up for Fortis Healthcare, consolidation could emerge as the biggest game changer for India's private healthcare industry. However, the sector remains fragmented with the organised sector taking up only 5-6 percent of the total market in the top-13 hospital chains constituting about 25 percent of the market. To add to that, the industry is facing regulatory headwinds and cost pressures with states moving towards standardisation of treatment rates and the NPPA  imposing price caps.