Mumbai Healthcare Sector Accelerates Hospital Expansion

Mumbai’s leading hospitals are expanding their capacity through collaborations, acquisitions and redevelopment projects as the city continues to face a shortage of hospital beds. Between 2023 and 2026, the number of beds increased only marginally from 3.5 to 3.7 per 1,000 people, according to healthcare consultant N Santhanam.

Shift Towards Brownfield Expansion

High land prices and limited space, particularly in South and Central Mumbai, are making new hospital projects increasingly expensive. Therefore, hospitals are turning to brownfield expansion, redevelopment and optimisation of existing campuses.

As per Hindustan Times, building a hospital in Mumbai can cost around ₹2 crore per bed, compared with approximately ₹75 lakh per bed in a tier-2 city.

Hospitals Expand Across Mumbai and Beyond

Several healthcare groups are now increasing capacity through strategic partnerships and acquisitions. For instance, the HCG Cancer Hospital–Asian Cancer Institute partnership aims to expand the Cumballa Hill facility from 52 to 200 beds. Meanwhile, Nanavati Max is investing ₹700 crore in expanding its Vile Parle campus and developing a 500-bed hospital in Thane.

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Focus Shifts to Tier-2 Cities

Because expansion costs remain high in Mumbai, hospital groups are also exploring tier-2 cities. Bombay Hospital, for example, plans facilities in Jaipur, Indore and Raipur, while other healthcare groups are looking towards emerging areas of the Mumbai Metropolitan Region.