Hospital Stocks Surge on CGHS Rate Hike

Hospital shares like

re (+7%), Max Healthcare (+4.3%), and Apollo Hospitals (+2.3%) rallied up to 7% on Oct 6 after CGHS revised rates for ~2,000 procedures, effective Oct 13—the first update in 15 years. Macquarie forecasts 5-30% rises in key areas (cardiology, neurology, oncology, orthopedics), boosting EBITDA mid-single digits for Max and Apollo. DAM Capital eyes 25-30% average hikes, potentially lifting revenues 2.5% and EBITDA 10%, favoring high-CGHS exposure stocks like Fortis, Max, Narayana Hrudalaya (+5%), and Yatharth (+4%). CGHS serves 4.26M beneficiaries; Fortis gains from IHH's approved stake buy. Sector outlook positive for FY27 earnings.