Soon, district government hospitals could be taken over by private players

Soon, district government hospitals across country could be taken over by private players as Government is working on a plan to leverage public private model in order to improve healthcare infrastructure in these hospitals i.e address shortage of qualifies doctors and bridge gap in medical education.


As per various reports doing rounds, Niti Aayog, the Government’s think tank has unveiled PPP model to link new or existing private medical colleges with functional district hospital to augment medical seats.

The 250-page draft ‘Model Concession Agreement for Setting up Medical Colleges under the Public Private Partnership’ guideline document has been released for feedback from stakeholders.

“India has a dire shortage of qualified doctors. It is practically not possible for the Central/state government to bridge the gaps in the medical education with their limited resources and finances.


“This necessitates formulating a public private partnership (PPP) model by combining the strengths of public and private sectors. Accordingly, a scheme to link new and/or existing private medical colleges with functional district hospitals through PPP would augment medical seats and also rationalise the costs of medical education,” the document said.

It further said that under this envisioned model, a concessionaire shall design, build, finance, operate and maintain the medical college and also upgrade, operate and maintain the associated district hospital with a minimum annual student intake of 150 MBBS seats.

“In consideration of making available the healthcare services, to the category of patients other than free patients, the concessionaire shall have the right to collect, appropriate and demand hospital charges…the concessionaire shall display the rates for the healthcare services, including the daily rate, for the bed occupancy in the district hospital at a place where it is visible to all,” according to the guideline document.

It further said the concessionaire shall be allowed to charge Rs 10 as registration fees from the free patients.

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