Apollo Hospitals, Max Healthcare, Fortis, Narayana Hrudayalaya, and KIMS Surge up to 5% after CGHS Rate Revision

Mumbai, October 6, 2025: Shares of major hospital chains such as Apollo Hospitals Enterprise Ltd (NSE: APOLLOHOSP), Max Healthcare Institute Ltd (NSE: MAXHEALTH), Fortis Healthcare Ltd (NSE: FORTIS), Narayana Hrudayalaya Ltd (NSE: NH), and Krishna Institute of Medical Sciences Ltd (NSE: KIMS) surged up to 5% on Monday morning trade after a much-awaited increase in rates under Central Government Health Services (CGHS) Scheme for almost 2,000 medical services, effective from October 13.

It is also a first-ever overall update after more than a decade, which resolved hospitals’ empanelment-related grievances against older package rates that had deterred cashless treatment under the program.

Why Hospital Stocks Are Rallying?

The new CGHS structure implements a multi-level pricing mechanism based on accreditation, category of hospital, level of the city, and type of ward:

• The NABH-recognized hospitals will be benchmarks, while non-recognized hospitals will be provided rates 15% less.
• The rates at Tier-2 and Tier-3 locations should be 10-20% less than at Tier-1 locations.
• 5% discount on general ward treatments will be given.

Broker forecasts 25-30% rise in median rates for procedures, which bolsters margins and receivables for the sector. Hospitals have received the decision positively, declaring that the decision will make joining CGHS less expensive and simplify cashless claims.

Stock Market Snapshot (as of 2:05 PM IST)

As of 2:05 PM IST on 6 October 2025, Apollo Hospitals Enterprise Ltd shares were trading at ₹7,652, up 2.73%. Max Healthcare Institute Ltd rose 6.44%, Fortis Healthcare Ltd gained 6.54%, Narayana Hrudayalaya Ltd increased 2.19%, and Krishna Institute of Medical Sciences Ltd (KIMS) advanced 4.43%.

Hospitals with the Highest Government Exposure

Out of the listed hospital chains of India, the biggest beneficiaries of the recent changes made under the Central Government Health Scheme (CGHS) are Fortis, Max Healthcare, Narayana Health, and Yatharth Hospitals, considering their high revenue exposure towards the government healthcare programs.

• Government schemes contribute up to 35% of Yatharth Hospitals’ revenue.
• Max Healthcare grosses around 21.8% from such revenue streams.
• Global Health as well as Narayana Health both report almost 18% revenue from schemes of the governments.
• Apollo Hospitals also receives correspondingly less revenue from governments at 9%.

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