SectorWatch

States Look for Private Players to Set-up 20 Medical Colleges

Taking serious note of the acute shortage of healthcare personnel, states like Uttar Pradesh, Bihar, Orissa, Jharkhand, Chhattisgarh and Assam, have begun looking for private partnerships to build up medical colleges. In an attempt to reduce the demand-supply gap, these Governments are in talks with consulting firm Infrastructure Leasing and Financial Services Ltd (IL & FS), to set up 20 medical colleges, each involving an investment of Rs 50 crore. The firm is targeting districts with very poor health indexes. Groups like Apollo Hospitals Group, Max Healthcare, Manipal Hospital and Heart Foundation Private Limited, Fortis Healthcare and have shown interest in partnering in this initiative. "Almost two-thirds of medical colleges are located in southern and western India. There is an acute shortage in the Northern and Eastern regions and they shall be our focus areas," said Narottam Puri, President, Medical Strategy and Quality, Fortis Healthcare. The current Medical Council of India (MCI) guidelines have some barriers that have deterred private sector to participate in this sector. Hence, the private companies may form not-for-profit societies to venture in this sector. Another concern is the state government's expectations and the fee structure. If the private companies follow the MCI guidelines to the book, it will be very difficult for them to make it a profitable endeavor

EH News Bureau