KOCHI: The decline in the number of surgeries and transplants along with the increasing competition meted out by the nearby hospitals in Kochi has impacted the operating income of Lakeshore Hospital and Research Centre (LHRC) in 2023-24 (FY24).
Lakeshore’s net profit for FY24 has declined to Rs43.86 crore compared with Rs57.52 crore in the previous year.
The total operating income too witnessed a drop during the period from Rs419.04 crore to Rs396.22 crore.
In fact, the operating income had grown at a compound annual growth rate (CAGR) of 8.12 per cent in the last two years ended FY23, and had seen improved profitability due to increased number of surgeries.
“Kochi has lately become a hub for several well-equipped hospitals that offer medical services at competitive rates, and this is giving the reputed hospital chains a run for their money,” a healthcare industry expert told businessbenchmark.news.
Growing competition
A rating agency has noted that due to competition from nearby hospitals providing relatively low-cost services, and increased focus on complex treatment procedures, Lakeshore’s occupancy levels remained moderate at 53 per cent in FY24 against 57 per cent in FY23.
“Occupancy rates are expected to improve in current year as the hospital started accepting government health insurance such as ex-servicemen contributory health scheme (ECHS) in the last two months,” the report further stated.
Lakeshore Hospital had a team of 277 doctors, nursing staff strength of about 692 nurses, over 530 medical support staff and close to 432 support staff as on March 31, 2024.
Diversified revenue stream
The hospital’s total income is spread across specialities with medical oncology and nephrology contributing to major source of revenue at 27.5 per cent in FY24.
“Each speciality contributes less than 15 per cent of total revenue and top five departments contributed 43.2 per cent of the total revenue in FY24,” the agency explained.
VPS Group
Dr VP Shamsheer is the main shareholder holding 42.62 per cent of the stake, and is the company’s chairman. He worked with radiology department at Sheikh Khalifa Medical City in Abu Dhabi, prior to promoting the VPS group in 2007.
VPS Healthcare is an integrated healthcare service provider with 23 operational hospitals, over 125 medical centers, 13,000 employees and medical support services across the Middle East, Europe and India.
Established in 1996
LHRC was incorporated as a public Ltd company in 1996 by Dr Philip Augustine, specialist in gastrointestinal endoscopy and Dr Peter John, a senior physician.
In 1999, Yusuff Ali, Promoter of the Lulu Group of companies, acquired a major stake in the hospital and became the chairman. In 2016, the company’s major stake was acquired by Dr V P Shamsheer, promoter of the VPS Healthcare group, Dubai.
LHRC is a multi-specialty hospital consisting of 582 beds providing services such as wireless capsule endoscopy, endoscopic ultrasonography, and double balloon enteroscopy, among others and handles liver, kidney, pancreas, intestine, heart and bone marrow transplantations under one roof.
