Government lures private sector with land and funding sops to set up hospitals in tier 2 and 3 cities

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Government lures private sector with land and funding sops to set up hospitals in tier 2 and 3 cities

The government on January 8 released the much-awaited guidelines that outline incentives to attract private investments in hospitals in Tier 2 and Tier 3 cities, to support its ambitious Pradhan Mantri Jan Arogya Yojana (PMJAY) or Ayushman Bharat.

As per the guidelines, the government will allocate land on lease or through bidding, facilitate various permissions and clearances through a special window with timelines.

In addition, the government guarantees compulsory empanelment of the hospitals for PMJAY and other government schemes, timely payments for services, viability gap funding up to 40 percent of the total cost of the project and gap funding up to 50 percent of tax on capital cost.

The government also assured restoration of the status of a hospital as the industry for getting the benefit of VGF.

The private sector will have to build, design, finance, manage, operate and maintain quality standards, take the market risk and provide services at PMJAY rates.

The government outlined three models – Doctor Owner (30 to 50 beds), Doctor Manager Partnership-Multispecialty (100 beds) and Multispecialty (100 beds or more) to extend incentives.

“The objective of the broad guidelines is to improve the supply of healthcare services in the underserved areas to ensure maximum utilisation of the benefits under PMJAY and to improve the demand for quality healthcare services at affordable prices to the general public,” said a statement of Ministry of Health and Family Welfare.

Ayushman Bharat provides hospitalisation cover of up to Rs 5 lakh per family per year to over 10 crore poor families in the empanelled hospitals throughout the country.

So far 33 states and union territories have come on board, out of which 29 have already launched the scheme.

With the scheme providing health coverage to 40 percent of country’s population, it is expected to create a huge demand for secondary and tertiary healthcare facilities that are mostly concentrated in metro cities.

In India, there are over 23,000 hospitals with around seven lakh beds.

Almost 20,000 hospitals are in the rural area with close to three lakh beds. Urban areas have fewer hospitals, around 3,700, but the majority of the beds totalling above 4.3 lakh, as per the data released by the Health Ministry, under the National Health Profile

“Over the last decade, India was adding 1 lakh hospital beds annually, but this will need to increase by almost 1.8 times if we are to reach the target of 3.6 million beds by 2034. PMJAY will catalyse these changes,” Amitabh Kant, CEO of Niti Aayog and Indu Bhushan, CEO of National Health Authority (NHA), wrote for the in-house bulletin of NHA, the implementing agency of the scheme.

Images are for reference only.Images gathered automatic from google.All rights on the images are with their original owners.

2019-01-12 04:36:30

Images are for reference only.Images gathered automatic from google.All rights on the images are with their original owners.

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