India’s first major overhaul of the Central Government Health Scheme (CGHS) since 2014 has brought renewed investor focus to hospital stocks like Apollo Hospitals, Max Healthcare, Global Health, Narayana Health, Yatharth Hospitals, and Fortis Healthcare. On Monday, October 6, these stocks rose up to 6% after the government announced revised rates for nearly 2,000 procedures, effective from October 13.
Apollo Hospitals gained over 2%, Max Healthcare—recently added to the Nifty 50—rose nearly 4%, while Yatharth Hospitals and Healthcare Global jumped over 4% each. Fortis shares surged as much as 6%.
The new CGHS structure introduces a multi-layered pricing model based on hospital accreditation, type, city tier, and ward entitlement. NABH-accredited hospitals will follow standard base rates, while non-accredited facilities will receive 15% lower rates. Pricing will be 10–20% lower in tier-2 and tier-3 cities compared to tier-1.
Hospitals expect improved receivables under the revised framework. DAM Capital estimates a 25–30% rate hike across key procedures, benefiting players like Fortis, Max, Narayana, and Yatharth—especially those with higher exposure to CGHS. Despite recent stock declines, the outlook remains positive.
