The government’s long-awaited revision in Central Government Health Scheme (CGHS) package rates is set to give a strong earnings boost to India’s private hospital sector, sector analysts have said.

The Centre has announced a comprehensive overhaul of rates for nearly 2,000 procedures under CGHS, the first such revision in 15 years, effective October 13, 2025. The new framework links reimbursement to hospital quality and city tier, aligning prices with current medical costs and incentivising compliance with quality norms. Advertisement

“Preliminary analysis suggests an overall price hike of 25 to 30 percent across most procedures,” said Nitin Agarwal, Research Analyst at DAM Capital. For instance, coronary artery bypass graft (CABG) rates have increased from ₹1.46 lakh to ₹2.36 lakh, ₹2.

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