Government hospitals to go private in UP

May 4, 2010

It is aimed at improving health care services in the state under the

public-private-partnership (PPP) model

Published on 05/03/2010 - 11:14:35 AM

Lucknow: The Uttar Pradesh government has decided to hand over public hospitals

to private chains like Apollo and Fortis under the public-private-partnership

(PPP) model to improve health care services in the state, an official said.

Fifty per cent of the beds in these hospitals will be kept for free patients,

reports IANS.

" Since we have already taken a policy decision to enter into a

public-private-partnership (PPP) to improve health services in the state, we

propose to start with the handing over of a few hospitals in private hands in

four districts of the state " , a Health Department spokesman said.

It is learnt that the state government initially proposes to hand over its

hospitals in four districts — Kanpur (Urban), Allahabad, Firozabad and Basti.

" Leading hospital chains like Apollo, Fortis and Max were among the nine health

care companies short-listed as the potential players for the proposed takeover, "

the spokesman said.

The final selection would be made by a committee that will evaluate the bids on

May 10.

Besides the district hospitals, the administration of 8 community health

centres, 23 primary health centres and 210 sub-centres would be transferred to

the private players.

Under the proposed contract, 50 per cent of the beds in these hospitals would be

reserved for free services, wherein priority would be given to those living

below the poverty line.

The private player would be entitled to fix its own charges for the remaining 50

per cent beds.

" Wherever the private partner adds new beds and facilities, it would be entitled

to a higher share of 75 per cent, leaving the remaining 25 per cent open for

free services, " the spokesman said.

The free services will include all diagnostic facilities as well as medicine.

According to the contract, the administration of these hospitals would be

entrusted to the private partners for a period of 33 years.

And a six-month period has been prescribed for the handing over process.

The existing government staff would be given the option to switch over to the

private employer or continue to be in government service.

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