They recommended X-ray, MRI scan (Rs. 8,000) and deluxe room (obviously). Add doctor consultancy fees and orthoscopy surgery to the bill - and now the insurance company will end up paying Rs. 60,000 - just for a knee fracture.

 

Applying the gory version of Peter Lynch's principles, I'm wondering if it makes sense to buy Wockhardt Hospitals stock after it gets listed (IPO coming in the next few weeks).

 

With the spread of health insurance and rise in lifestyle diseases like Diabetes, I'm thinking branded hospitals like Wockhardt can make good money.

 

Good case to avoid companies that are majorly into health insurance ..as for hospitals yes there is a good case in terms of no of beds /1000 , no of people dependant on quality healthcare etc etc ..but the point is most of these business have huge capital requirements right from buildings upto the expensive equipment that they need to buy and refurbish every now and then ..the capex plans could hurt their earnings for quite some time .

 

Even in the long term we need to see what kind of model they operate in whether its the build and own model or the lease model or the franchise model ...

carol info holds approx 70 lakhs shares of WockHardt Hospitals .