India’s listed hospital chains plan to add 20,000 beds over three to five years as proposed price caps raise concerns over revenue growth and margins.

Listed hospital chains have announced about 20,000 more beds in the next five years. India's listed hospital chains are adding thousands of beds, but proposed caps on room rates and standardised procedure pricing could test whether providers can expand while keeping treatment costs down. Major listed hospital groups added, commissioned, or acquired about 2,000 beds in the second quarter and have announced plans to add roughly 20,000 more over the next three to five years, according to a September healthcare update by Ernst & Young Global Ltd. (EY) India.

Hospital chains are expanding capacity…