Five states are now in the process of finding private players for running state-sponsored district hospitals. States including Uttar Pradesh, Maharashtra, Karnataka, Gujarat, and Meghalaya are handing over district hospitals to private healthcare companies to run attached medical colleges on a public-private-partnership (PPP) basis.
This is a part of Niti Aayog’s decision to privatise government hospitals that was taken in January 2020. The think tank had already developed the Concession Agreement Guiding Principles for Setting up Medical Colleges, which was drawn up based on models tried in Gujarat and Karnataka earlier.
Madhya Pradesh plans to set up medical colleges in Bhopal, Jabalpur, Katni, Balaghat and Indore in the first phase under a DBFOT (Design, Build, Finance, Operate and Transfer) basis, according to a press report.
Under the plan, the state government will provide land to the private partner on a 99-year (60 years + 39 years) lease to set up a medical college and in addition, will provide a 300-bed district hospital to the partner.
In Uttar Pradesh, 16 medical colleges are to be developed under the state government’s one-district-one-medical-college initiative, which is being financed by the Viability Gap Funding scheme of the Central government. UP government will provide a district hospital and the land for medical colleges on a 33-year lease.
Meghalaya has invited bidders to develop Shillong Medical College and Hospital and similar plans are afoot in Karnataka and Maharashtra as well. Punjab is another state that has expressed an interest to join the initiative.
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