In a concerning development, the closure of small-scale hospitals is escalating at an alarming rate across Kerala. This trend, which has been brewing for some time, has become more pronounced in recent years as corporate hospital chains and large private players expand their presence in the state’s health sector.
According to reports, around five to ten hospitals have closed down in Palakkad alone in north Kerala over the past few years. A seasoned doctor practicing in the region explains that this is not due to a decline in morbidity but rather a multitude of factors causing small hospitals and clinics to shutter their doors.
The Indian Medical Association (IMA) has estimated that over 1,000 clinics have closed across Kerala in recent years, with approximately 400 small hospitals ceasing operations during the same period. Despite this apparent retreat of private healthcare from the state, there has been a significant growth in large private super-specialty hospitals. The total number of hospitals in Kerala has risen from 3,677 in 2021 to 5,402 in 2025.
The expansion of large private hospitals coincides with an influx of international capital into Kerala’s health sector. This structural churn within the state’s healthcare landscape is not solely attributed to the closure of neighborhood hospitals and clinics but serves as a visible symptom of broader shifts in the sector.
The IMA’s recent assessment reveals that 1,306 clinics and 444 small hospitals have shut down in Kerala over the past five years. These figures underscore the challenges faced by small-scale healthcare providers in an increasingly competitive landscape dominated by corporate entities.
As this issue continues to unfold, it remains crucial for policymakers to address the unique needs of smaller hospitals and clinics to ensure accessibility and affordability of healthcare services for all residents of Kerala.
