Apollo, Fortis, Max Healthcare Share Price: Hospital Stocks Rally Up To 8% After CGHS Rate Revision

Shares of hospitals like Apollo Hospitals, Max Healthcare, Fortis Healthcare among others rallied up to 8 per cent on October 6 after the government announced a major revision of the Central Government Health Services (CGHS) package rates, the first major revision in more than a decade.

Among major hospital stocks, Fortis Healthcare shares led the rally, gaining as much as 8.13 per cent. Max Healthcare followed with over 6.33 per cent jump. Apollo Hospitals shares rose up to 3.76 per cent, Krishna Institute of Medical Sciences (KIMS) advanced as much as 6 per cent, Narayana Hrudayalaya surged as hugh as 5.65 per cent, and Aster DM Healthcare rallied up to 4.14 per cent during the session.

Other hospital stocks such as Global Healthcare, Metropolis Healthcare, Yatharth Hospital & Trauma Care Services, Artemis Medicare Services, GPT Healthcare, Family Care Hospitals, Dhanvantri Jeevan Rekha, and KMC Speciality Hospitals also traded higher.

CGHS Rate Revision 2025: What Changes Now

The new rates, covering nearly 2,000 medical procedures, will come into effect from October 13, 2025. “All existing Memoranda of Agreement (MoAs) executed with private empanelled hospitals shall cease to be valid with effect from 13.10.2025 12 AM," said an update dated October 3 from Ministry of Health and Family Welfare. Hospitals will need to seek fresh empanelment, sign new agreements within 90 days, and file undertakings to continue offering services under the new system.

As per the new rules, CGHS rates will vary by ward type. Rates will be 5 per cent lower for general wards and 5 per cent higher for private wards. Charges for diagnostics and minor procedures will remain the same for all. Cancer surgeries will continue under old rules, but chemotherapy, radiotherapy and related tests will now follow the revised rates.

Super-specialty hospitals will face tighter norms, requiring at least 200 beds and accreditation from NABH or equivalent bodies. The revised package rates are all-inclusive, covering admission to discharge. Implants like stents and lenses will be reimbursed separately, while consumables are included in the package. In case of multiple surgeries, the primary procedure will be reimbursed in full, with subsequent ones partly covered.

CGHS Rate Revision 2025: How Big Is The Impact

The CGHS scheme covers 4.26 million beneficiaries across 80 cities, with over 2,000 empanelled hospitals and diagnostic centres.

Between FY20 and FY24, reimbursements to private hospitals under CGHS jumped from Rs 935 crore to Rs 3,646 crore, nearly 300 per cent increase. This surge came on account of a 39 per cent increase in the number of CGHS beneficiaries, from 3.42 million in FY20 to 4.76 million in FY24. Consequently, private hospitals’ share of CGHS spending jumped from 24 per cent in FY20 to nearly 60 per cent in FY24, as shared by Ministry of Health and Family Welfare in response to a parliamentary question.

Analysts at DAM Capital estimate the revised package rates could boost revenues for key procedures by 25 per cent to 30 per cent.