Centre includes PSUs and other govt agencies in PPP model

With the Centre aiming for at least one major hospital in each of the 761 districts of the country, it has roped in public sector undertakings (PSUs) and other government agencies to expand their hospital capacity in partnership with the private sector and throw them open for use of the general public as well.

Currently, the facilities of PSU-run hospitals operate within the premises of the entities and the facilities are largely restricted to the staff, and their close relatives, although there are cases where the public have restricted access to out-patient counters and pharmacies, and for emergency reasons.

Recently, the government has given the nod to the entities in the port sector, including Paradip Port, Chidambaranar Port Trust (formerly Tuticorin Port), Visakhapatnam Port and Mumbai Port to expand their hospital capacities for this purpose.

Under Public Private Partnership (PPP), Paradip Port would establish a 400-bed Super-specialty Hospital at Paradip with the option of developing a Medical College and further expanding the hospital on a PPP basis. Besides the port staff and their families, the general public would also be given access to the services in the hospital on a chargeable basis.

Mumbai Port Trust is converting its 241-bed hospital into a 600-bed super speciality hospital to provide improved healthcare facilities to some 45,000 port employees and dependents and the general public in the catchment area on a PPP basis with an investment of about Rs 700 crore.

“Besides PSUs in the port sector, other state-run firms and agencies like the railways are likely to expand their hospitals on PPP mode to cater to the general public as well,” a senior official said. Some are in the bidding stage, some are awarded, some are being appraised, the official added.

India needs an additional 2.4 million hospital beds to reach the recommended ratio of 3 beds per 1,000 people, fuelling the demand for healthcare-related real estate space, Global real estate consultant Knight Frank said in a report. India’s existing bed-to-population ratio is 1.3/1000 population (both private and public hospitals included).

The Centre has plans to build at least one major hospital in each of India’s 761 districts to improve healthcare access in smaller towns.

There was a nearly 80% shortage of surgeons, physicians, gynaecologists and paediatricians at community health centres in rural India as of March 2022, according to a government report.

Under the Ayushman Bharat Scheme, which offers Rs 5 lakh health cover/annum to poor families and senior citizens above 70 years (irrespective of income status), poor families have approximately saved Rs 1.25 lakh crore in healthcare expenses. Opening up the CPSE hospitals for the general public would boost the Ayushman Bharat Scheme as well as general public would have access to these hospitals. Financial Express