In today’s Finshots, we explain why oncology is turning into a major revenue driver for private hospitals while public cancer care initiatives are failing to keep up.

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The Story

India’s population is growing but so are chronic illnesses. And cancer sits among the top illnesses leading the list. The Indian Council of Medical Research says India saw 8.7 lakh cancer deaths and 15.6 lakh new cases in 2024. And today, the lifetime risk of developing cancer for an average Indian stands at 11%. So yes, India is staring at a growing cancer crisis.

Now, cancer treatment doesn’t come cheap. Depending on the city, the cancer type and stage, treatment can set you back anywhere between ₹1 lakh to ₹27 lakh. That’s because it requires specialised doctors called oncologists, advanced diagnostics, surgeries, chemotherapy, and radiation therapy. The equipment alone is eye-wateringly expensive. A linear accelerator (LINAC), which is used for radiation therapy, can cost up to ₹5.2 crore, while a PET-CT scanner ranges from ₹1.8-3.3 crores.

So there’s a pressing need for access to these treatments. And the government hasn’t ignored the crisis. Over the past few years, it has rolled out schemes like the National Programme for Prevention and Control of Non-Communicable Diseases (NP-NCD), sanctioned up to ₹120 crore for State Cancer Institutes (SCIs) and ₹45 crore for Tertiary Cancer Care Centres, and even promised 200 district cancer day centres by 2026.

But execution is where the cracks show (and we’ll tell you why in a bit).

And that’s the gap private hospital chains have spotted as their opportunity. 

Because today, oncology isn’t just a high demand specialty for hospitals, it’s a key revenue driver.

Take Max Healthcare, India’s largest listed hospital chain. Over a quarter of their ₹2,042 crore revenue last quarter (Q1FY26) was from oncology alone – more than cardiac sciences (10.4%) and orthopedics (11.8%). Fortis Healthcare saw a 28% year on year jump in oncology revenue in the same period, which now contributes over 16% of their total income. And not to forget HCG, which operates the highest number of cancer centres in India, has seen its revenues grow at 19% compounded annual growth rate (CAGR) from FY20 to FY24.

Which makes us ask, why are private hospitals at such an advantage?

Well, it comes down to three main factors, starting with government initiatives.

The NP-NCD initiative we spoke of above shows there have been public investments made for cancer care. However, the benefits rarely flow as intended since the reach for care and talent shortage strains the public health system significantly. Take Kidwai, one of the largest state-run cancer hospitals. It has seen MRI machines break down for weeks. Now, skipping this scan isn’t an option for many patients, which keeps them waiting without an alternative choice. Other SCIs face bed shortages, like Jaipur’s State Cancer Institute, that’s equipped with just 170 beds, far short of demand.

Then there’s the talent crunch. AIIMS, the leading government healthcare institute across India, has been struggling with talent. It’s unable to keep specialists and also fill positions. Around 429 doctors have resigned from 20 AIIMS institutes between 2022-2024, with 1 in 3 faculty posts lying vacant. These exits mean the leading physicians are leaning towards working in the private sector, giving big hospital chains an upper hand.

Punjab is a case in point, where cancer cases rose from 39,521 in 2021 to 42,288 in 2024, but only 19 of 43 sanctioned posts at Government Medical College, Amritsar, are filled.

And finally, access and funding are lopsided. Public centres provide treatment at a fraction of private costs. But that affordability means that government expansion gets slowed down and access to treatment can be stretched. In the North East, over 75% of the population is rural but 95% of cancer care facilities are in urban areas. This forces patients to seek late-stage treatment in overcrowded centres, where survival rates are poor.

Private hospitals, on the other hand, can mobilize capital quickly, bring in the top talent and expand aggressively. Apollo runs 10 dedicated cancer centres across India staffed with 125+ radiation and surgical specialists. Max Healthcare is spending ₹6,000 crore to double its capacity to 9,500 beds by 2028 and expand from 22 to 30 hospitals. Fortis has invested in precision oncology, with its Gurugram centre boasting one of the only two MR-LINAC machines (a fusion of MRI and linear accelerator) in India. Owning similar advanced technology allows hospitals to ask premium pricing from its patients, given how rare the treatment is.

Plus, private players’ access to talent and capital gives them one big advantage above all else: Comprehensive care.

You see, cancer treatment isn’t like cardiology or orthopedics. It’s not one surgery or one procedure but a complex web of diagnostics, surgery, chemo, immunotherapy, radiation, and constant monitoring. Private hospitals package all of this under one roof. That’s a big differentiator because public systems and smaller hospitals often force patients to shuttle between centres.

So put all of it together, and you know how that allows private players to command a bigger market, and set their own prices.

And maybe that’s what matters: Putting oncology at the center of demand, cost and capacity. For patients, it’s a life changing point. And maybe that’s something that the government initiatives can include in their expansion plan.

If public programmes move on par with private institutes, or even pair up with private players in the form of private-public-partnership model, India could move closer to a future where cancer care isn’t a privilege, and every patient regardless of city or income receives comprehensive cancer care.

Until then…

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