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Odisha offers VGF to develop hospitals in PPP mode

Odisha is planning to develop 19 hospitals under public-private-partnership (PPP) mode to provide healthcare services at affordable rates across the State.

These hospitals, planned to be developed based on a hub and spoke model, will add 2,600 beds under PPP mode and augment equitable access to quality health care services at reasonable price.

The Health and Family Welfare Department in association with International Finance Corporation (IFC), which is the transaction adviser of this project, recently organised a meeting with prospective leading hospitals of the country on the feasibility of such a project in Odisha and to devise further strategies to implement it. Industry and skill development departments are also roped in to develop the plan to attract investors.

As per the official document shared by the Health Department, these new hospitals will be set up on Design, Build, Finance, Operate and Transfer (DBFOT) model for which the State Government will provide Viability Grant Funding (VGF).

The health units will provide secondary, and basic tertiary care services and be organically integrated with the public health system through the hub and spoke model.

“Since private health care facilities comprise of only 27.59 per cent of the total health facilities in the State, there is enormous scope for growth of the private sector. Such an initiative will encourage investors to set up their ventures here,” Dr Pramod Kumar Meherda, Secretary of Health & Family Welfare Department, said.

“As per the estimation under this PPP mode, health sector of the State is expected to see investment of about Rs 1,200 crores for development of hospitals and each bed will see an investment of about Rs 40 lakhs”, said Pranav Mohan, Investment Officer (Health) of IFC. More than 40 leading healthcare groups across the country attended the Affordable Health Project Conference.

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