Healthcare firms in India may have gone on an overdrive expansion mode on a huge demand- supply gap in services, but their profitability could be under tremendous pressure owing to the ever rising operating costs.

According to consultancy and advisory firm Feedback Ventures, increasing human resources costs and pressure on pricing from medical insurers and third party payers could impact profitability of the country's private healthcare players.

"Salaries across the medical staff from technicians to nurses and doctors have increased tremendously. With a shortage of talent, specially doctors and nurses being attracted overseas, companies are having to pay more to retain them," Feedback Ventures Vice-President Monica Sood said.

Moreover, with healthcare also requiring large scale marketing in the wake of heightened competition, the firms are finding it struggling to land right people to sell their brands.

"Today there is a dearth of talent in the market for healthcare marketing managers," Sood added citing a study done by the firm. She also said with medical insurers and third party payers asking hospital chains to keep prices low, the healthcare firms are under pressure.
The opportunities, however, are umpteen in this sector. "A minimalistic calculation would put the bed requirement for the country at about 30,000 as against the current availability of 7,000-8,000," she said.

Going forward, patients would prefer institutional brands over individual doctors, with the firms trying to offer more comprehensive team of doctors, Sood said.