Bengaluru: India’s hospital sector is expected to continue its growth trajectory over the next few years, with patients likely to see greater access to specialty care, advanced technologies and hospitals beyond metropolitan cities. However, industry leaders warn that a shortage of skilled healthcare professionals, coupled with evolving regulations and reimbursement pressures, could determine how quickly these benefits reach patients.These are among the key findings of Deloitte’s India Hospital Survey: FY27 Outlook, which surveyed CXOs from hospitals with annual revenues exceeding Rs 500 crore and more than 500 beds. The report found that a majority of hospital executives expect the sector to grow by 10-15% in FY27, driven by rising insurance coverage, increasing demand for tertiary care, and continued capacity expansion.But growth alone is no longer the focus. Hospitals are increasingly investing in artificial intelligence (AI), cybersecurity, electronic health records and advanced specialties such as oncology, robotic surgery and organ transplantation to improve both clinical outcomes and operational efficiency, the report finds.According to Joydeep Ghosh, Partner and Life Sciences & Health Care Leader, Deloitte South Asia, the healthcare sector is moving beyond experimentation with technology.“AI is rapidly moving from experimentation to execution. Hospitals are already generating tangible benefits through AI-assisted documentation, workflow automation, advanced analytics, and patient engagement platforms. These applications help improve productivity, reduce administrative burden, and support clinicians,” he told TOI.The report also suggests hospitals are increasingly looking beyond metro cities for future growth. About 46% of the executives surveyed said expansion into Tier-2 and Tier-3 cities would be a strategic priority, reflecting growing insurance penetration and rising demand for advanced healthcare outside traditional urban centres.Ghosh said these markets present an opportunity to improve access to specialised treatment but require careful execution.“Expansion beyond metros offers opportunities to build specialty care networks, capture rising insurance-led demand and improve access to advanced treatments in Tier-2 and Tier-3 markets. But entering new markets is not just about adding capacity; it requires the right talent, digital capabilities and operational readiness,” he said.Despite the optimism, workforce shortages remain the sector’s biggest concern. The report identifies shortages of doctors, nurses and other specialised professionals as one of the top challenges facing hospitals, alongside cybersecurity risks, government reimbursement pressures, and the slow adoption of digital tools. Hospitals are responding by investing in leadership development, simulation-based learning, and digital upskilling programmes, the report says.The report also highlights a broader shift in Indian healthcare—from high-volume general care towards specialised, technology-enabled treatment.“Patients will be able to take advantage of more advanced treatments, more accurate diagnoses, better clinical outcomes and less reliance on seeking care abroad for complicated procedures. However, the success of this transition will depend on balancing innovation and accessibility,” Ghosh said.While hospitals expect steady revenue growth, they are also tightening control over procurement, workforce expenses and operational efficiency to sustain profitability amid inflation and pricing pressures.On what is next, Ghosh said: “Developing skilled talent, accelerating regulatory processes, strengthening digital infrastructure and moving further up the value chain will be critical to maintaining global competitiveness. At the same time, organisations will need to balance growth ambitions with resilience, compliance, technological transformation and continuous innovation, ensuring that future growth is more sustainable and globally competitive.”
