Shares of Fortis Healthcare climbed nearly 3.3% on Monday to Rs 1,012.80, marking one of the day’s early gainers on the NSE. The rise comes after the Indian government announced a major revamp of the Central Government Health Services (CGHS) — the first such overhaul since 2014 — which has sparked optimism for hospital stocks.
The CGHS rate revision, effective October 13, updates nearly 2,000 medical procedures and introduces a graded rate structure based on hospital accreditation, type, city classification, and ward entitlement. Accredited hospitals under NABH will now serve as the standard base rate, while non-accredited hospitals will have rates 15% lower. Rates in tier-2 and tier-3 cities will be 10–20% lower compared to tier-1 cities.
This move addresses long-standing hospital complaints that CGHS package rates had not been adjusted for medical inflation since 2014. Hospitals had often refused cashless treatments due to outdated reimbursement rates, forcing patients to pay out of pocket and wait months for refunds.
According to DAM Capital, the revision could lead to an average hike of 25–30% across key procedures. Fortis, with relatively high exposure to government schemes, stands among the biggest potential beneficiaries, alongside Max Healthcare, Narayana Health, and Yatharth Hospitals.
The sentiment has spilled over into the broader hospital sector as well, with Max Healthcare, Apollo Hospitals, and Global Health also trading higher in early deals.
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