Indian healthcare giant Narayana Hrudayalaya is on the cusp of a transformative venture, aiming to introduce its insurance service by the first quarter of the financial year 2024-2025 (FY25), as revealed by a senior company official.
Sandhya J, the group CFO at Narayana Health, expressed optimism about the imminent launch, stating, “We hope that in Q1 of the coming financial year we will be able to go live with our first product.”
Having obtained approval from the Insurance Regulatory and Development Authority of India in January 2024, Narayana Health, also known as Narayana Hrudayalaya, is poised to venture into the health insurance sector, with aspirations to challenge conventional norms and usher in transformative change.
Acknowledging potential perceptions of a conflict of interest due to the combination of hospital and insurer roles, Narayana Health remains resolute in its mission to disrupt prevailing practices in healthcare. Sandhya emphasized the company’s vision, stating, “We believe that we will be able to disrupt the way health services are consumed in the country.”
Highlighting the significance of preventive healthcare measures, Sandhya stressed the importance of regular health checkups in curbing future hospitalization expenses.
Narayana Hrudayalaya’s forthcoming foray into the insurance realm signifies a strategic endeavor to enhance accessibility to healthcare services and instigate paradigm shifts in the Indian healthcare landscape. As anticipation mounts for the rollout of its pioneering insurance offerings, Narayana Hrudayalaya is poised to redefine the contours of healthcare delivery in the country.
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In a bid to address the existing gaps in health insurance coverage, Narayana Hrudayalaya is gearing up to introduce a range of innovative insurance products catering to diverse segments of the population. While acknowledging the prevalent trend where most health insurance providers primarily cover illnesses necessitating hospitalization, Narayana Health aims to revolutionize the industry by offering comprehensive coverage that extends beyond hospitalization expenses.
Sandhya J, the group CFO at Narayana Health, highlighted the company’s commitment to inclusivity and accessibility in healthcare. “We will have different products to cater to different segments of the population. Some of these will cover outpatient also,” Sandhya affirmed. Recognizing the importance of addressing outpatient expenses such as doctor consultations and pharmacy spending, Narayana Health is poised to introduce insurance products that provide holistic coverage, meeting the evolving needs of healthcare consumers.
Furthermore, Sandhya emphasized Narayana Health’s strategic focus on delivering economical solutions, particularly targeting the “missing middle” segment—individuals who currently lack access to affordable insurance options. By offering comprehensive coverage across the spectrum of healthcare needs, Narayana Health aims to bridge existing gaps in the healthcare insurance landscape and promote greater financial security and well-being for individuals and families across India.
Narayana Hrudayalaya, a prominent player in the healthcare sector, disclosed its capital expenditure (capex) figures for the financial year 2023-24 (FY24), amounting to approximately Rs 1,000 crore. The company aims to sustain this level of investment over the next few years to fuel its expansion initiatives.
Sandhya, the group CFO at Narayana Health, expressed the company’s intention to maintain capex at around Rs 1,000 crore for the foreseeable future, citing ambitious expansion plans as the driving force behind this decision. Most of the capex in FY24 was allocated to the expansion of the company’s facility in the Cayman Islands, which is nearing completion and will feature enhanced daycare facilities. Going forward, the focus will shift to investments in India, with the completion of the Cayman expansion project.
Notably, Narayana Hrudayalaya secured 7.26 acres of land in Kolkata in February 2024 to establish a healthcare facility. The upcoming capex will be directed towards developing this site, along with investments in the flagship hospital in Bengaluru.
Founded in 2000 by Devi Shetty, Narayana Hrudayalaya initially specialized in cardiac and renal sciences before expanding its services to include cancer care, neurology, neurosurgery, orthopedics, and gastroenterology. The organization rebranded itself as Narayana Health in 2013 to reflect its diversified presence.
With a significant footprint in southern Karnataka and eastern India, Narayana Health is gradually expanding its operations in western, central, and northern regions of the country. In February 2024, ICRA affirmed the company’s stable rating, reflecting expectations of continued benefits from its strong market position, technological investments, and the ramp-up of operations at new centers.
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Sources: moneycontrol.com