Can hospitals make profit? Top doctors discuss Kerala's medical hub potential

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Kochi: Kerala's potential to become a medical hub was discussed at the Malayala Manorama Sampadyam Kerala Business Summit 2025, with seasoned doctors from diverse backgrounds expressing their views and concerns.
Dr Arun Oommen, a consultant neurosurgeon, exuded confidence that Kerala can become a medical hub with the immense talent available in the state and other favourable conditions. However, he was concerned about the cost of high-quality healthcare.
"This is a changing phase. People from other parts of the world are coming to Kerala for healthcare. However, the major crisis is that people are unable to access quality healthcare due to financial constraints," he said. The doctor urged the government to increase fund allocations for the health sector as a solution. He said comprehensive health insurance should be made compulsory.
Dr Sunny P Orathel, medical superintendent of Rajagiri Hospital, was also confident about Kerala's healthcare sector, saying the government sector in the state has also made huge advancements in terms of speciality treatments.
"Multi-specialty hospitals are a necessity. People think multi-speciality hospitals are coming up only in the private sector, and they have to spend money to get such treatment. In the government sector, also a lot of multi-specialty hospitals are there," he said, citing the facilities in Ernakulam General Hospital.
However, he was sceptical about investments in the healthcare sector. He said healthcare institutions are unlikely to turn profitable because of the higher running costs, including the need to update expensive machinery.
Dr Sabine Sivadasan, founder and MD of Sabine Hospital, had a contradictory view about his venture recently drawing a private investment. He said his hospital has been following the model of serving quality care at an affordable cost. He said the hospital recruits early-stage doctors and gives them advanced training and exposure, offering them a comfortable workplace.
Harikumar, CEO of Kottakkal Aryavaidyasala, sounded not in favour of promoting the concept of medical tourism. He said the focus should be on treatment and not on tourism. Focusing on tourism will dilute medical treatment, he said. He said when the quality of treatment and infrastructure increases, possibilities of tourism will improve naturally. R Krishnaraj, Content Editor, Manorama Online.