Healthcare sector revenue likely to slip by 15-20 pc in FY21: Icra

Following the spread of Covid-19 pandemic, the revenues of healthcare entities is likely to fall by 15-20 per cent in FY21, rating agency Icra said on Wednesday.

The entities in healthcare sector are expected to report an over 50 per cent drop in revenues in April and May with a gradual pick-up thereafter, the agency said in a statement.

The monthly revenue run rate is expected to reach the pre-Covid-19 levels in the second half of FY21, subject to the return to normalcy and revival of medical tourism, it added.

However, the performance in H2FY2021 will not be adequate to compensate for the drop in H1FY2021, leading to a full-year drop of 15-20 per cent, Icra said.

Similarly, the occupancies that have currently dropped to 25-30 per cent are likely to inch up gradually as people stay cautious in visiting hospitals and the hospitals themselves remain selective while taking in more patients, it added.

"The performance has taken a hit due to the impact of the COVID-19 pandemic. The ...