Administrators of major corporate hospitals in Hyderabad said the healthcare ecosystem makes the city a strong contender for a Regional Medical Hub announced in Union Budget 2026-27. The image is used for representative purposes only.

Administrators of major corporate hospitals in Hyderabad said the healthcare ecosystem makes the city a strong contender for a Regional Medical Hub announced in Union Budget 2026-27. The image is used for representative purposes only.
| Photo Credit: GETTY IMAGES

The Union Budget 2026-27 proposal to establish five Regional Medical Hubs to position India as a global medical tourism destination has drawn strong reactions from Hyderabad’s healthcare institutions, with industry heads welcoming the vision while calling for deeper ecosystem reforms and clearer Centre–State coordination.

Announcing the scheme on Sunday (February 1, 2026), Union Finance Minister Nirmala Sitharaman said the Central Government would support States in setting up integrated healthcare complexes in partnership with the private sector. The hubs were envisaged to combine advanced clinical services, medical education and research, along with AYUSH centres, Medical Value Tourism Facilitation Centres and infrastructure for diagnostics, post-care and rehabilitation.

With Hyderabad already witnessing substantial inflows of international patients, hospital administrators said the city is well positioned to emerge as a strong contender if Telangana gets included in the proposed Regional Medical Hubs. In 2025, Telangana Health Secretary Christina Z. Chongthu had stated that the State attracts more than 1 lakh visitors annually from the Middle East, Africa, South Asian Association for Regional Cooperation (SAARC) and Commonwealth of Independent States (CIS) countries.

Vijay Anand Reddy, director, Apollo Cancer Centres, said Hyderabad is already one of the country’s leading destinations for international patients. “We have the infrastructure and manpower to take care of these patients. At Apollo Hyderabad, almost 30% of the patients we see are international patients,” he said. According to him, patients travel from South Asian countries, Africa, parts of Europe and even the United States for cancer treatment, drawn by costs that are nearly one-tenth of what they would spend in many developed countries, coupled with personalised care.

Bhaskar Rao, chairman and managing director of KIMS Hospitals, said the city has the depth and scale required to evolve into a Regional Medical Hub. “Hyderabad combines advanced tertiary care, high patient volumes, medical education and research within a single ecosystem. Skilled clinicians, cost-effective treatment, strong diagnostics and transplant programmes, and experience in managing international patients give it a competitive edge,” he said.

“The ecosystem extends far beyond hospitals. It encompasses rehabilitation services, post-acute care, hospitality and a skilled workforce, all of which are essential for medical tourism. This makes Hyderabad a plug-and-play destination for such a hub,” said P. Hari Krishna, executive director, Medicover Hospitals.

Mallikarjuna C., managing director of Asian Institute of Nephrology and Urology (AINU), welcomed the broader intent but stressed that healthcare remains a State subject and that effective implementation would require close coordination between the Centre and States. “For anything to happen on the ground, there has to be a good handshake between the Central and State Governments. Health is largely looked after by the State,” he said.


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