Rainbow Children’s Medicare adding 930 beds in phased manner across 5 clusters

Rainbow Childrens Medicare Ltd. is one of the largest hospital chains in India with pure-play focus on pediatric needs. It operates through a hub and spoke model and its operations are spread across six cities including key metro towns like Hyderabad, Chennai, Bengaluru and New Delhi.

Its network includes 16 hospitals which house ~1,655 beds and three outpatient clinics.

Rainbow is widening its reach in existing cities by adding 930 beds in a phased manner across five clusters in next four years. Most of the new beds will be a spoke to the existing hub hospital in the cluster and help raise occupancy and surgical revenue at the hub hospital.

Focus on tier-I cities and better payor mix (cash and insurance at 99% of revenue) has helped the company garner margins of 33.8% and average revenue per occupied bed of Rs 48,932 even when occupancy was lower at 55.4% in FY23.

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