Private Equity in Indian Healthcare: A Case for Regulatory Safeguards

• PE investment in Indian healthcare has surged, with significant stakes held by global and domestic investors like Temasek, Blackstone, and KKR.
• The Sahyadri Hospitals case study shows rapid financialisation, with the hospital changing hands three times in six years at sharply higher valuations.
• International evidence suggests PE ownership can lead to rising costs, increased procedure volumes, aggressive billing, and debt-driven acquisitions that compromise patient care.
• India is more vulnerable due to high out-of-pocket expenditure, uneven insurance, and weak consumer protection, risking healthcare becoming an extractive industry.
• Proposed safeguards include prohibiting leveraged buyouts, mandating price bands, ring-fencing essential services, transparently disclosing PE ownership, and strengthening public hospitals.