India Asset Light Hospital Services Market By Services (Telehealth and Virtual Care, Home-based Healthcare, Primary Care Services, Daycare Surgical Services, Specialty & Super-specialty Services), By Business Model (Franchise-based Clinics, Hub-and-Spoke Models, Outsourced Operations, Joint Ventures/PPP Models, Platform-led Aggregators), By Ownership (Start-up and Venture-backed Chains, Hospital-backed Asset-light Expansions, Standalone Physician-run Clinics, Aggregator Platforms), By Region, Competition, Forecast & Opportunities, 2021-2031F

Market Overview

India Asset Light Hospital Services Market was valued at USD 96.32 Million in 2025 and is expected to reach USD 458.63 Million by 2031 with a CAGR of 29.68%.

The India Asset Light Hospital Services Market is witnessing strong growth as healthcare providers increasingly adopt models that minimize investment in physical infrastructure while leveraging partnerships, outsourcing, and technology integration to deliver quality care. This approach allows operators to reduce capital expenditure, improve operational efficiency, and expand into underserved regions without the constraints of building and maintaining large hospital facilities. The rise of value-based care and a growing emphasis on cost optimization are further supporting this shift, making asset-light strategies attractive for both established healthcare players and new entrants. Government initiatives to promote healthcare accessibility and affordability, along with the rise of private sector participation, are enabling rapid market development in India’s evolving healthcare ecosystem.

Key growth drivers include the rising burden of chronic and lifestyle-related diseases, which is increasing the demand for specialized healthcare services delivered in cost-efficient settings. Growing consumer preference for outpatient care, home healthcare, and telemedicine is reshaping how services are provided, reducing the need for extensive hospital stays. The adoption of healthcare IT solutions, digital patient engagement tools, and cloud-based management systems is enabling asset-light hospitals to streamline operations, improve patient outcomes, and ensure better scalability. Trends such as integrated healthcare networks, the rise of multi-specialty day-care centers, and collaboration between hospitals, diagnostics, and pharmacy chains are creating a more interconnected service ecosystem. The increasing role of private equity investment is also providing financial support for rapid network expansion and innovation in service delivery models.

Challenges include maintaining consistent quality standards across dispersed service networks, managing coordination between multiple outsourced service providers, and addressing regulatory compliance in a highly fragmented market. Workforce shortages, particularly in specialized medical fields, can affect service delivery and limit scalability in some regions. Data privacy and cybersecurity concerns are emerging as key risks due to the growing reliance on digital platforms. Despite these hurdles, the market is expected to continue expanding due to rising healthcare demand, technological advancements, and evolving patient expectations. Asset-light models are set to play a critical role in bridging the healthcare access gap while ensuring financial sustainability for providers, paving the way for a more agile and responsive healthcare system in India.

Key Market Drivers

Rising Demand for Affordable and Accessible Healthcare

The rising demand for affordable and accessible healthcare is a pivotal driver of the India Asset Light Hospital Services Market, fueled by demographic, economic, and policy dynamics. According to the National Health Accounts (NHA) estimates, out-of-pocket expenditure (OOPE) as a share of total health expenditure dropped significantly from 64.2% in 2013–14 to 39.4% in 2021–22.

Concurrently, government health spending soared from 29% to 48% of total health expenditure during the same period. This shift has reduced financial strain on households and created a more conducive environment for healthcare delivery models that balance cost and quality.

Asset-light hospital models characterized by leasing infrastructure, outsourcing non-core services, and integrating with existing facilities are ideally suited to leverage this evolving environment. Reduced infrastructure costs allow providers to pass savings to patients, aligning with growing demand from middle- and low-income segments for value-driven care. The expansion of publicly funded insurance schemes, particularly Ayushman Bharat, has further improved affordability and made these leaner care models viable and scalable. Government support for decentralized healthcare delivery, combined with technological enablers like telemedicine and mobile diagnostics, is strengthening the asset-light approach's acceptability and reach.

By minimizing capital intensity and focusing on strategic flexibility, these models ensure that essential healthcare services can reach underserved populations without compromising quality. The convergence of reduced financial burden on families, improved government health financing, and increasing demand for affordable, accessible care is accelerating the adoption and expansion of asset-light hospital services in India’s healthcare landscape.

Increasing Adoption of Public–Private Partnerships (PPPs)

The increasing adoption of Public–Private Partnerships (PPPs) is emerging as a major driver for the India Asset-Light Hospital Services Market, enabling healthcare providers to expand reach without bearing the costs of building new infrastructure. In this collaborative model, the government often provides access to existing facilities or policy support while private operators bring in technical expertise, efficient hospital management, and modern technology. This setup is especially valuable in semi-urban and rural areas, where capital investment for new facilities can be prohibitive. Asset-light operators benefit from steady patient inflow, 37% of the 8.5 crore treatments provided under Ayushman Bharat–PMJAY were administered by private hospitals, indicating strong demand for quality care under public schemes.

These PPP models incorporate performance-based contracts that drive quality and accountability while enabling private players to scale rapidly across multiple geographies. Leasing or operating within government-supported facilities helps reduce financial risk and entry barriers. Policy reforms and incentives such as subsidized leases, streamlined permissions, and tax benefits further improve feasibility for private operators using asset-light strategies. This framework supports a model of care delivery that combines accessibility, cost-efficiency, and sustainability. Through these partnerships, asset-light hospitals can introduce specialized services, attract qualified clinicians, and integrate advanced healthcare technologies without owning real estate.

By aligning operational agility with public health goals, PPPs are fostering a healthcare delivery ecosystem that emphasizes efficient resource utilization, reduced patient costs, and improved care outcomes. Adoption of this model is helping address healthcare gaps faced by underserved regions while delivering services at scale and speed—positioning asset-light hospital services as a vital component of India’s healthcare transformation journey.

Growing Health Insurance Penetration

Growing health insurance penetration is a significant driver of the India Asset-Light Hospital Services Market, profoundly enhancing healthcare affordability and access for diverse demographic groups. According to government-backed estimates, by 2024 nearly 55 percent of India’s population is projected to be covered under some form of health insurance, a notable rise from approximately 51 percent in 2023. Public sector initiatives, notably the Ayushman Bharat – PM-JAY program, have played an essential role in this expansion. As of June 2025, over 410 million Ayushman cards have been issued, boosting cashless coverage across secondary and tertiary care settings. This increased coverage encourages patients to opt for organized healthcare services, often available through asset-light models, because upfront cost barriers are significantly reduced.

Moreover, insurance-backed reimbursements offer predictable revenue flows for asset-light hospital operators, enabling rapid scaling and outreach into underserved areas. These models, which minimize capital expenditure by leveraging leased infrastructure and outsourced clinical services, are particularly suited to emerging environments where healthcare infrastructure is limited but demand is rising. The synergistic growth of health insurance and asset-light hospital services fosters financial resilience for providers while promoting equitable access to care. By aligning insurance penetration with agile service delivery strategies, asset-light operators are well-positioned to capitalize on India’s evolving healthcare ecosystem, promising both sustainability and impact.

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Key Market Challenges

Limited Control Over Infrastructure and Quality

Limited control over infrastructure and quality presents a significant challenge for the India Asset Light Hospital Services Market because the operational model often relies on leased premises, shared facilities, or partnerships with independent healthcare providers. In such arrangements, the hospital operator does not fully own or manage the physical infrastructure, which can lead to variability in maintenance standards, availability of medical equipment, and overall facility readiness.

The absence of direct ownership can make it difficult to enforce uniform quality protocols across all locations, especially in cases where the partner facility has pre-existing systems or differing operational practices. Variations in building design, space allocation, and patient flow can impact efficiency, infection control measures, and overall patient experience. Quality assurance also becomes more complex when the workforce, such as nursing staff or support personnel, is employed by the facility owner rather than the asset-light operator, leading to potential gaps in training, adherence to clinical guidelines, and service consistency.

Patients often associate a hospital’s brand with their experience at the facility, meaning any service lapses or infrastructure shortcomings, even if outside the operator’s direct control, can damage reputation and erode trust. Implementing standardized technology platforms, digital health records, or diagnostic protocols may also face resistance from partner facilities unwilling to invest in upgrades.

This dependency on external stakeholders for critical operational aspects limits the flexibility to scale up services or introduce new specialties quickly. In regions where property owners or partners fail to meet compliance requirements for healthcare facilities, regulatory risks may arise, putting licenses or accreditation at stake for the brand. The challenge extends to situations where sudden termination of lease agreements or changes in partnership terms can disrupt service continuity, leading to financial losses and operational instability, making quality control a persistent concern in this market.

Dependence on External Service Providers

Dependence on external service providers poses a significant challenge for the India Asset Light Hospital Services Market, as it creates a reliance on third-party entities for critical functions such as diagnostics, imaging, specialty consultations, equipment leasing, and facility management. Since asset-light hospitals typically operate without owning substantial infrastructure or high-value medical equipment, they must partner with diagnostic chains, specialty clinics, or equipment suppliers to deliver comprehensive care.

This reliance can lead to operational vulnerabilities, as any delays, quality lapses, or service disruptions from these partners directly impact patient satisfaction and hospital credibility. Quality control becomes complex because clinical outcomes are partially dependent on the capabilities, processes, and standards of external providers, which may vary across locations. Negotiating consistent pricing and service-level agreements across multiple partners can be challenging, affecting cost predictability and profitability.

Limited control over scheduling and availability of specialized services may result in longer patient wait times, reducing competitive advantage in urban and semi-urban markets where patients expect quick turnaround. Inconsistent branding and patient experience across partner facilities can weaken brand perception, especially when services are co-delivered by multiple independent entities. Regulatory compliance risks also increase when multiple vendors are involved, as any non-compliance by a partner could expose the hospital brand to legal or reputational damage.

In a competitive healthcare environment, dependence on external providers may also create strategic risks, as partners might collaborate with competing hospitals or shift focus to their own independent growth. Maintaining trust, consistency, and seamless service delivery across different external relationships requires robust vendor management systems, rigorous quality audits, and continuous alignment of operational standards. Without strong oversight mechanisms, the asset-light model can face challenges in sustaining service excellence, brand integrity, and patient loyalty over the long term.

Key Market Trends

Rapid Expansion into Tier-II and Tier-III Cities

​ The India Asset-Light Hospital Services Market is gaining substantial momentum as providers increasingly leverage leased facilities, service partnerships, and lean operational models to scale care delivery to Tier-II and Tier-III cities. Healthcare demand in these urbanizing areas has intensified; under the Ayushman Bharat–PMJAY scheme, over 36.36 crore Ayushman cards have been issued as of January 2025, enabling 6.5 crore hospital admissions across public and private hospitals.

These numbers reflect the growing accessibility and utilization of hospital services beyond metropolitan hubs, creating attractive opportunities for asset-light providers. Leasing local infrastructure and outsourcing support services allow these operators to enter new markets rapidly and affordably, reducing capital intensity while investing selectively in medical talent, diagnostics, and digital platforms. Lower operational costs in these cities also help maintain competitive pricing, appealing to previously underserved populations.

Government expansion of primary care infrastructure further bolsters this trend. By September 2024, India had operationalized around 1.74 lakh Ayushman Arogya Mandirs, comprising sub-health centers, primary, and urban health facilities. This network strengthens referral chains and helps integrate asset-light hospital services with preventive care systems. Partnering with local physicians and clinics facilitates smoother market entry and builds patient trust. Increased insurance penetration via schemes like PMJAY gives patients financial cover, making them more likely to choose formal healthcare at nearby asset-light facilities. As patient preferences shift toward convenience, affordable and tech-enabled care, this expansion strategy allows providers to capture growing demand and reduce dependency on overloaded tier-I institutions.

Surge in Telemedicine and Remote Consultation Integration

​ The surge in telemedicine and remote consultation integration is reshaping India’s Asset Light Hospital Services Market by significantly expanding access and reducing dependency on physical infrastructure. According to the Ministry of Health and Family Welfare, the government’s telemedicine platform e-Sanjeevani has facilitated over 36 crore (360 million) consultations since its launch in 2020 through more than 17,000 hubs and 2.3 lakh providers nationally. This dramatic uptake demonstrates how asset-light healthcare operators can extensively tap digital channels to deliver services from remote or underserved areas without investing in brick-and-mortar facilities. Integration of virtual care platforms with electronic medical records (EMRs) and the central ABDM digital ecosystem, where over 76 crore ABHA health accounts have been created and 52 crore health records linked, provides a robust backbone for seamless patient management.

Digital consultations paired with video, remote diagnostics, and AI-powered tools are enabling efficient treatment protocols for chronic disease management, follow-up care, second opinions, and mental health services, all manageable through compact, technology-driven setups. Patients benefit from faster access, reduced travel, and lower out-of-pocket costs, while providers can scale service delivery across dispersed catchment areas with reduced capital commitment. As policy frameworks like the Telemedicine Practice Guidelines and tools like e-Sanjeevani continue to mature, telerehabilitation and hybrid care models are becoming integral components of asset-light hospital operations. These developments position telemedicine at the heart of the future of care delivery bridging infrastructure gaps, enhancing reach, and supporting sustainable growth for asset-light healthcare networks across India.

Segmental Insights

Services Insights

Based on the Services, Telehealth and Virtual Care emerged as the dominant segment in the India Asset Light Hospital Services Market in 2025. This is driven by rising digital adoption, improved internet connectivity, and the growing need for accessible healthcare solutions. Asset-light hospitals have increasingly integrated telemedicine platforms to expand their reach beyond physical locations, enabling consultations, follow-ups, and remote monitoring without significant infrastructure investment. The surge in demand for virtual care is supported by the convenience it offers to patients, particularly in tier 2 and tier 3 cities, where specialist availability is limited. This service model allows hospitals to leverage a network of doctors, diagnostic partners, and digital health tools to deliver timely and cost-effective care while reducing the burden on physical facilities. The integration of AI-powered diagnostics, remote patient monitoring devices, and electronic health records further enhances care efficiency and personalization.

Business Model Insights

Based on the Business Model, Platform-led Aggregators emerged as the dominant segment in the India Asset Light Hospital Services Market in 2025. This is driven by their ability to connect patients, healthcare providers, and service partners through a centralized digital ecosystem. These platforms operate without owning extensive physical infrastructure, instead focusing on aggregating services such as consultations, diagnostics, pharmacy deliveries, and wellness programs under one digital interface. This model allows hospitals and healthcare providers to expand their reach, optimize resource utilization, and improve patient engagement while minimizing capital expenditure. The growth of this segment is supported by increasing smartphone penetration, rising internet access, and the preference for on-demand healthcare solutions. Platform-led aggregators leverage advanced technologies such as AI-driven appointment scheduling, teleconsultations, and data analytics to personalize patient care and streamline service delivery.

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Regional Insights

The North India region emerged as the dominant region in the India Asset Light Hospital Services Market in 2025. This is supported by its advanced healthcare infrastructure, large patient population, and rapid adoption of digital health solutions. States such as Delhi, Haryana, Punjab, and Uttar Pradesh have witnessed significant investments in healthcare technology, enabling faster integration of asset-light models such as telehealth, platform-led aggregators, and diagnostic service networks. The presence of major tertiary care hospitals, medical research institutes, and skilled healthcare professionals has facilitated seamless collaborations with technology providers and service aggregators. The region’s high internet penetration and growing awareness about remote healthcare services have further accelerated market adoption.

Additionally, North India benefits from a robust private healthcare sector and supportive state-level initiatives aimed at expanding access to affordable and efficient medical services without heavy infrastructure investments. The increasing demand for specialized care in urban and semi-urban areas, coupled with the convenience of digital healthcare platforms, has reinforced the dominance of this region. With its combination of strong service delivery networks and patient-centric digital adoption, North India is expected to continue leading the asset-light hospital services market over the forecast period.

Recent Developments

• In May 2025, Max Healthcare Institute announced plans to expand capacity to 6,500 beds by FY25-end, targeting 9,000 beds by FY28. The Delhi-based hospital chain is acquiring land in Thane and partnering with a blue-chip firm to establish a hospital under its asset-light model, where a third party builds and leases the facility for 50–60 years. This approach, already implemented in Zirakpur, Mohali, Pitampura, and Dwarka, is aimed at improving capital efficiency and returns. In Q4FY25, the company posted revenue of ₹2,326 crore, a 27.2% margin, and a profit after tax of ₹376 crore.
• In February 2025, Pristyn Care opened its first super-specialty hospital in South Delhi, marking a key expansion for the healthcare startup operating in 25 Indian cities. The facility features four modular operating theatres with advanced technology, a Level 3 Neonatal Intensive Care Unit, and dedicated dermatology and plastic surgery departments equipped with high-end machines.
• In October 2024, A4 Hospitals, a leading women’s healthcare network based in Tamil Nadu, secured significant growth capital from 360 ONE Asset Management through its Healthcare Opportunities Fund. This funding injection is aimed at accelerating the hospital chain’s expansion plans, enhancing its portfolio of specialized women’s health services, and solidifying its competitive position within the Indian healthcare sector. With this capital, A4 Hospitals intends to invest in technology upgrades, expand clinical specialties, and increase its geographic footprint across Tamil Nadu and neighboring regions, meeting rising demand for comprehensive women-centric healthcare.
• In June 2024, Fortis Healthcare unveiled plans to boost its operational capacity by adding 700 beds in the fiscal year 2025, primarily through brownfield expansions. The company’s strategy emphasizes asset-light growth by focusing on optimizing existing facilities and infrastructure rather than investing heavily in new construction. Fortis also divested two underperforming units in Chennai to streamline operations and improve overall profitability.
• In February 2024, Entero Healthcare announced plans to expand further into tier II and tier III cities, backed by a strong anchor book and high-quality investor interest. The company operates primarily on a distribution-led model, with distribution services forming the core of its business. In just about five years, Entero has grown to become one of India’s largest healthcare distributors.

Key Market Players

• Pristyncare
• Vianam Healthtech Private Limited
• Mykare Health Solutions Private Limited
• Glamyo Health Private Limited
• Aster DM Healthcare Limited
• MANIPAL HEALTH ENTERPRISES PVT LTD (Manipal Hospitals)
• Apollo Hospitals
• Fortis Healthcare
• Artemis Hospital (Artemis Medicare Services Ltd)
• GPT Healthcare (GPT Group)

Report Scope:

In this report, the India Asset Light Hospital Services Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• India Asset Light Hospital Services Market, By Services:

o   Telehealth and Virtual Care

o   Home-based Healthcare

o   Primary Care Services

o   Daycare Surgical Services

o   Specialty & Super-specialty Services

• India Asset Light Hospital Services Market, By Business Model:

o   Franchise-based Clinics

o   Hub-and-Spoke Models

o   Outsourced Operations

o   Joint Ventures/PPP Models

o   Platform-led Aggregators

• India Asset Light Hospital Services Market, By Ownership:

o   Start-up and Venture-backed Chains

o   Hospital-backed Asset-light Expansions

o   Standalone Physician-run Clinics

o   Aggregator Platforms

• India Asset Light Hospital Services Market, By Region:

o   North India

o   East India

o   West India

o   South India

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the India Asset Light Hospital Services Market.

Available Customizations:

India Asset Light Hospital Services Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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