While the West Asia conflict has led to a drop in patient footfalls, hospitals are seeing higher realisations as international patients increasingly travel for complex, high-end procedures.
Listed hospital companies reported an increase in revenue from medical value tourism (MVT) in financial year 2026 (FY26), despite a decline in international patient volumes due to disruptions arising from the West Asia conflict and political unrest in Bangladesh.
Several hospital chains reported declines in international patient inflows, particularly in March, even as annual international business revenues remained strong.
Key Points
- Listed hospital chains reported higher medical tourism revenues despite lower international patient arrivals during geopolitical disruptions in FY26.
- West Asia conflict and Bangladesh political tensions temporarily affected patient inflows and new international registrations across major hospitals.
- Hospitals recorded stronger revenues from complex procedures including oncology, transplants, robotic surgeries and advanced cardiac treatments.
- Indian hospital chains are expanding patient outreach across Africa, CIS countries, Southeast Asia and newer international healthcare markets.
Medical Tourism Revenues Rise
Fortis Healthcare, for example, experienced a temporary decline in patient flow at the onset of the conflict due to the non-availability of flights, which disrupted the inflow of international patients.
"During initial period of the conflict, the hospital largely catered to patients who had already travelled and were present in India," Anil Vinayak, group chief operating officer at Fortis Healthcare.
"As a result, the business recorded a drop of around 7 per cent for the month," Vinayak added.
It reported an 18.5 per cent year-on-year rise in MVT revenues to Rs 639 crore (Rs 6.39 billion) in FY26, up from Rs 539 crore (Rs 5.39 billion) in FY25.
Similarly, other large hospital chains, such as Max Healthcare and Medanta, reported strong growth in their international business during the year.
West Asia Conflict Impacts Patients
While the West Asia conflict has led to a drop in patient footfalls, hospitals are seeing higher realisations as international patients increasingly travel for complex, high-end procedures.
Patients from West Asia depend on Indian hospitals for heart surgeries, oncology procedures, transplants and orthopaedic treatments.
A Max Healthcare spokesperson said the chain delivered robust year-on-year growth in international patient revenues in FY26, driven by a higher inflow of patients seeking complex, high-end tertiary and quaternary care treatments.
"This includes oncology, transplants and robotic surgeries, along with improved capacity utilisation and its new and modern infrastructure," the spokesperson added.
Hospitals Target New Markets
Market watchers said hospital chains have also started expanding across international markets while reinforcing their presence in established regions.
"Fortis Healthcare continues to receive international patients from diverse regions, including Africa, the Commonwealth of Independent States countries, the Middle East, SAARC nations and Southeast Asia," Vinayak added.
He noted that the highest patient inflows within this are from Iraq and Uzbekistan, along with strong contributions from East African countries such as Kenya, Tanzania, Ethiopia and Uganda.
"This progress was supported by initiatives to strengthen brand visibility and enhance digital and online engagement," an official from a Gurugram-based hospital chain told Business Standard.
Executives said such steps have helped offset the softness from two key markets for medical tourism into India: West Asia and Bangladesh.
Bangladesh Patient Flow Declines
According to government data on foreign tourist arrivals until 2024, 75 per cent of tourists coming to India for medical treatment were from Bangladesh.
However, bilateral issues between India and Bangladesh last year led to a fall in the numbers, forcing Indian hospital chains to look at markets of Africa and Southeast Asia.
Apollo Hospitals, for example, has seen its share of patients from Africa, West Asia and Southeast Asia increase even as arrivals from Bangladesh dipped.
While the firm did not share MVT revenue, its Managing Director Suneeta Reddy said in an earnings call that Apollo's strong FY26 performance came despite lower seasonal medical admissions alongside moderation in international patient volumes, particularly from Bangladesh.
FY27 Growth Outlook Positive
Hospitals remain optimistic about international patient revenue growth in FY27, even as geopolitical uncertainties in key West Asian markets may continue to affect short-term performance.
"With improving market penetration, enhanced regional partnerships, and continued focus on patient acquisition, the international business is expected to regain momentum during FY27, subject to geopolitical stability in key markets," Vinayak said.
A Max spokesperson added that while the ongoing West Asia crisis has led to a decline in patient volumes from the region, the company's overall growth remains resilient due to strong traction across emerging markets in the CIS, Africa and Southeast Asia.
Some hospital companies have also said they are not seeing any significant impact on the current flow of international patients from West Asia, even though the number of new registrations from the region may decline if the conflict persists.
Alisha Moopen, deputy managing director at Aster DM Healthcare, said in an earnings call that the MVT segment maintained strong momentum, growing 41 per cent Y-o-Y on the back of increased international patient footfall.
'Within Kerala, MVT revenues grew 51 per cent with stronger inflows from Maldives helping offset macro-related softness from West Asia, demonstrating the resilience and diversification of the platform,' Moopen added.
Addressing Medanta's earnings call, the company's Group Chief Executive Officer and Director Pankaj Prakash Sahni said the challenges in West Asia would eventually taper off, adding that Bangladesh, as an international market, would return eventually.
Feature Presentation: Ashish Narsale/Rediff
