"In Big Trouble": COVID-19 Lockdown Puts Private Hospitals On Ventilator

Till March 22, the 50-bed Repose Nursing Home in South Kolkata was full. But as the lockdown rolled in, occupancy fell to just 12 patients now. Usually, occupancy is 100 per cent with a waiting list. But all that now seems history and the owner is wondering how long she can keep the shutters up at her 40-year-old facility.

"Patients are not coming because doctors are not attending chambers and also patient parties are panic-stricken and there is no transport at all. But government is saying we have to give salaries. We can't deduct anything. How it is possible, I don't know. If this continues, we have to close down the institution," said Dr Maya Ghosh, the owners of the nursing home.

Bigger hospitals are in bigger trouble with bigger overheads and staff to take care of. The healthcare panel of the industry lobby FICCI has written to Prime Minister Narendra Modi on March 25 for help. They said the healthcare sector needs urgent help because the coronavirus outbreak and the nationwide lockdown have meant almost no patients are coming in for surgeries, footfalls at outpatient clinics are down 70 to 80 per cent and revenue is down 50 to 70 per cent putting private hospitals in total jeopardy.

Dr Alok Roy, chairman of FICCI healthcare panel and of the chain of Medica Superspeciality Hospitals in eastern India, said, "A hospital has 10 to 15 per cent EBITA (Earnings before interest, taxes, and amortization) and a PAT (Profit After Tax) of 3 to 5 per cent. With that money, we have no cash flow. As a result, we have already walked into CCU (Critical Care Unit). We won't be able to pay power bills from May and we will find it very, very difficult to pay salaries. Unless the government comes up with some fiscal support. We need oxygen ourselves. Else we are in big trouble."

"We are the care providers or warriors as the Prime Minister has called us. If this goes on, the healthcare workers will not be available to provide healthcare at a time when you need them and that's a frightening scenario," said Dr Narottam Puri of Fortis Hospital who is also advisor to FICCI's health panel.

At yet another small nursing home in South Kolkata with 50 beds and just 12 patients, staff say their chairman has promised full salaries for all but no escaping the question - for how long.

Sijo PL, Operations Manager, Purnam Medicare, said, "Doctors are not available, patients are worried. The patients coming for admission, their first question is are there any corona patient admitted here? That will be an issue. But I have strict instructions from my chairman that full salary will be paid to the staff in the current scenario. I don't know what will happen in the future."

A terrible uncertainty is gripping the private health sector which has at least 4,000 hospitals with 9 lakh beds directly employing 40 lakh people.

60 to 70 per cent of India's healthcare is provided by the private sector. If private sector hospitals go on life support, the battle against the virus will lose a huge flank of its army, experts say.