I am arguing for ignoring the opportunity cost of land in this context. A typical healthcare provider will have its WACC close to 12%. Not to mention the returns that private equity players expect, if we want international capital to build healthcare infrastructure. Private Sector firms will not enjoy the same economies of scale as the government in buying and building the required infrastructure. Private Sector is expected to have higher nominal wage cost, though its productivity is expected compensate and lower the final cost of service.

Source: Economic Times June 04, 2021 06:25 UTC