The rapid influx of private capital into Asia’s healthcare sector has triggered concerns among analysts about potential overvaluation risks. With private equity funds and institutional investors aggressively acquiring hospitals, clinics, and service providers, asset prices have soared beyond traditional valuation metrics. This surge is partly driven by the region’s growing demand for quality healthcare and demographic trends, but experts warn that the current valuation multiples may not be sustainable if market growth fails to meet inflated expectations.

Industry insiders highlight several factors amplifying these risks, including:

  • Regulatory uncertainties that could impact operating margins
  • Rising operational costs due to talent shortages and technological investments
  • Competitive pressures from new entrants and digital health…