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Hospital Stocks Surge After CGHS Rate Revision: Buy or Hold?
Hospital stocks are in focus today following the biggest revision in Central Government Health Scheme (CGHS) package rates in 15 years. The new rates, covering nearly 2,000 medical procedures, will come into effect on October 13, 2025.
Impact on Hospital Revenues
Analysts estimate the rate revision could lift hospital revenues by around 2.5% and boost EBITDA by up to 10% for companies with significant government exposure.
Shares of Apollo Hospitals, Max Healthcare, Fortis, and Narayana Health have all responded positively, trading higher in early market action.
Expert Opinion
Market expert Avinash Gorakshakar said the move is a clear positive for the sector:
“Larger players like Apollo, Fortis, Narayana Health, and even smaller ones like Yatharth Hospital will be in the limelight today. Investors should look at this as a long-term portfolio choice. Any dip is a good opportunity to accumulate because Q2 will be stronger than Q1. We are structurally positive on hospital stocks.”
Investment Takeaways
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Long-term potential: With rising government reimbursements and steady patient volumes, hospital stocks may deliver sustainable returns.
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Short-term trading: Positive sentiment could fuel near-term price gains, especially for companies with higher CGHS exposure.
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Dip accumulation: Analysts suggest using market dips as an entry point for long-term investments.
(Disclaimer: The views and recommendations in this article are for informational purposes only. Consult a qualified financial advisor before making investment decisions.)
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Published: Oct 06, 2025
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