Study Reveals Regional Imbalance in India's Healthcare Private Equity Investments

Overview of Healthcare Investment Trends

A recent study conducted by researchers from Brown University and Johns Hopkins Bloomberg School of Public Health has highlighted a significant geographic concentration of private equity (PE) investments in India’s healthcare sector. Data covering the period from January 2007 to May 2025 indicates that capital has primarily flowed into multispecialty hospitals located in the western and southern regions of the country.

Key Findings

• Geographic Disparity: States such as Karnataka (13 deals), Maharashtra, and Telangana (10 each) emerged as the primary hubs for PE activity. Conversely, northern and eastern states received negligible investment.
• Sector Focus: Over 73% of the 70 identified acquisitions were directed toward 45 hospital groups, involving 187 multispecialty hospitals. In the outpatient category, ophthalmology and fertility services were the most common targets.
• Investment Patterns: Deal activity saw a significant acceleration post-2020, reaching a peak in 2023 with 18 deals. Researchers suggest this aligns with global trends where healthcare became an attractive, stable investment during the pandemic.
• Investor Profile: Foreign PE firms, particularly those from the US, Singapore, and Mauritius, financed over 67% of the acquisitions. Domestic Indian investors backed 18 deals.
• Exit Strategies: Secondary sales to other PE firms were the most frequent exit strategy, occurring in 64% of the observed exits.

Notable Hospital Groups

Four major groups—Manipal Health Enterprises, Health Care Global Enterprises, CARE Hospitals, and ASG Eye Hospitals—accounted for one-third of the total deals identified in the study. The findings were published in the *BMC Health Services Research* journal. For further verification or detailed methodology, readers may refer to the full study in the mentioned journal.