By Brazil Stock Guide – Rede D’Or (RDOR3), Brazil’s largest private hospital group, plans to add 2,690 beds between 2026 and 2028, keeping its expansion pipeline largely intact despite higher interest rates, construction-cost pressure and a tougher environment for healthcare assets.
Rede D’Or had 13,555 total beds at the end of the first quarter of 2026, meaning the new pipeline would take the company to roughly 16,200 beds by 2028 — an increase of about 20% from the current base.
Pipeline still intact
In a report, BTG Pactual said the update should not be read as a meaningful cut. Last year’s plan implied 2,712 beds for the 2026–2028 period, only 22 more than the 2,690 now disclosed. On a cumulative 2025–2028 basis, the plan now stands at 3,191 beds, compared with 3,203 previously — a difference of just 12 beds.
That matters because Rede D’Or had already reset its expansion plan last year. The company delivered 501 beds in 2025, slightly above the 491 beds expected in the previous reference form, helping validate the revised plan. For BTG, the latest update suggests that the earlier reset was realistic rather than the beginning of a broader slowdown.
Fewer projects, larger base
Rede D’Or now says it is developing more than 20 greenfield and brownfield projects, down from more than 30 previously. At first glance, the lower number of projects could suggest less activity. BTG reads it differently: because the number of planned beds is virtually unchanged, the pipeline may simply be more concentrated, with fewer but larger or more mature projects.
The expansion also remains mostly brownfield-driven. Around 75% of the planned additions are expected to come from expansions of existing hospitals, compared with about 80% previously. That mix should help reduce execution risk and support faster ramp-up, since brownfield projects usually require less time and uncertainty than hospitals built from scratch.
Capex unchanged
A key positive in the report is cost discipline. Rede D’Or kept average capex per bed unchanged at R$1.4 million, despite Brazil’s higher-for-longer interest rates, construction inflation and a slightly lower brownfield mix.
For investors, that is important because the economics of hospital expansion depend not only on adding beds, but on adding them at returns that justify the capital deployed. Stable capex per bed helps preserve that equation and reduces the risk that growth comes at the expense of profitability.
Bradesco partnership
BTG also highlighted Rede D’Or’s partnership with Bradesco as an increasingly relevant growth platform. Recent joint-venture announcements, including projects in Sorocaba and São Conrado, reinforce the view that Atlântica D’Or can become an important part of the company’s next phase of expansion.
Atlântica D’Or is expected to reach about 2,100 beds once ongoing projects are completed. For Rede D’Or, the partnership adds scale and strategic depth in a market where hospital groups need access to patients, doctors, capital and health plan operators.
Valuation discount
BTG maintained a buy rating on Rede D’Or, with a 12-month price target of R$54. Bank projects revenue rising from R$71.4 billion in 2026 to R$88.5 billion in 2028. EBITDA is expected to grow from R$13.5 billion to R$18.4 billion over the same period, while net income is projected to increase from R$5.2 billion to R$7.4 billion.
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