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Centre to Regulate Private, Public Clinics

As the kidney racket throws light on illegal clinics running across the country, the Centre issued a statement saying it would soon bring in a law to regulate both private and public clinics.

“The Clinical Establishment Act is before a standing committee of Parliament and would be soon introduced,” Union Health and Family Welfare Minister Anbumani Ramadoss said.

Under the act, all public and private clinics across the country will have to register themselves.

“All the clinics across the country should improve the quality and standard of the services,” Ramadoss said while inaugurating a Diagnostic Centre set up as a public private partnership venture between Hindustan Latex, a mini ratna enterprise under the Ministry of Health and Central Government Health Scheme (CGHS).

Ramadoss said his ministry wanted to provide quality care and health related services to the beneficiaries of CHGS.

HINDLABS is equipped with the most modern lab facility and will deliver reliable, accurate and quality diagnostic services to CGHS beneficiaries at CHGS rates. The same services will also be provided to patients outside the CGHS at affordable rates.

CGHS is one of the primary health care delivery networks of the Ministry of Health and Family welfare, which delivers economical and quality medical care facilities to Central government employees across the country.

The project, if successful, will be scaled up in the coming six months period in the national capital. 

Budget Booster for Healthcare Industry

The recently announced Union Budget 2008 must have been music to the ears of healthcare service providers in the country. Taking cognizance of the tremendous potential of this rapidly growing sector and its impact on the society at large, Finance Minister, P Chidambaram doled out a five-year tax holiday for hospitals in tier II & III cities. Such a move is expected to trigger a surge of new healthcare facilities in non-metro cities/towns, which are currently in dire need of quality healthcare.

With a five year long tax-vacation, it might be an economical proposition for private players to spread beyond metro cities, and still remain profitable. At the same time, this will give a financial bandwidth for existing providers to revamp services and modernise their facilities.

Ripple effects of the Budget announcement was quite evident at the stock market, with healthcare majors gaining a handsome rise in stock prices over the day. While Fortis Healthcare seem to have gained the most with a stock appreciation of 7.4%, Wockhardt and Apollo also made their mark with an increase of 1.3% and 1.2% respectively.

Some of the other highlights for healthcare sector in the recent budget includes – INR 16,000 crore allocation for public health, 15% hike in outlay for NRHM, INR 30,000 insurance cover for BPL workers and INR 1,000 crore allocation for polio eradication in Bihar.

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