With large multi-specialty hospital chains slowing down in deals, investors are now turning their attention to single-specialty hospitals (SSHs). These hospitals, which focus on one specific area of care, are becoming the next big growth area in India’s healthcare industry.
Experts say SSHs are attractive because they provide focused treatment, run operations more efficiently, and expand faster. Data from Grant Thornton Bharat shows that SSHs now make up more than half of all hospital deals in India, with private equity (PE) firms investing around $2.3 billion in the past three years.
In 2023 alone, the sector saw its highest-ever deal value of $1.2 billion, led by big investments like BPEA EQT’s deal with Indira IVF and Quadria Capital’s investments in Maxivision and NephroPlus.
According to Sunil Thakur of Quadria Capital, the SSH market is expected to double to $9 billion by 2028, offering strong profits (over 20% earnings) and better returns compared to multi-specialty hospitals. In recent years, more than $3.5 billion has flowed into this segment, showing strong investor trust.
Currently, SSHs are growing at a rate of 24% every year, much faster than the 15–17% growth of multi-specialty hospitals. Popular areas attracting investments include IVF, women’s and child care, eye care, kidney treatment, and cancer care.
Although no major high-value deals have been seen in 2025 yet, experts believe SSHs remain attractive because of their healthy profits, quicker break-even, and asset-light business models. They are also helping healthcare expand beyond metro cities by becoming effective platforms for regional growth.
The SSH market is valued at about $15 billion, with the organised segment (worth around $4 billion) growing steadily through consolidation and network expansion. Globally, too, the focus is shifting towards specialised hospitals as a more efficient way of delivering healthcare.
Vishal Bali, Executive Chairman of Asia Healthcare Holdings, summed it up: “One of the key ways to bridge India’s healthcare demand-supply gap is through single-specialty hospitals.”
