Hospital stocks surged up to 6% on October 6 after the Central Government Health Scheme (CGHS) announced a revision in rates for nearly 2,000 medical procedures, effective October 13, 2025. Fortis Healthcare, Apollo Hospitals, and Max Healthcare gained 7%, 2.3%, and 4.3%, respectively, with Max Healthcare emerging as the top Nifty 50 gainer. The Nifty Healthcare index rose 0.6%, while Narayana Hrudalaya and Yatharth Hospitals climbed 5% and 4%.
Macquarie expects procedure rates in key areas like cardiology, oncology, neurology, and orthopedics to increase by 5–30%, potentially boosting EBITDA for Max and Apollo by mid-single digits. CGHS, which serves over 4.26 million central government employees, pensioners, and dependents in 80 cities, will now operate under updated rates closer to market standards.
DAM Capital anticipates a 25–30% average rate hike, leading to around 10% EBITDA growth. Fortis also received SEBI approval for IHH Healthcare to raise its stake by 26.1%. Hospitals with high CGHS exposure—like Fortis, Max, and Narayana—stand to benefit most from this long-awaited revision.