Virendra Pandit

`No move to "privatise" hospitals as they serve the poor'

Gandhinagar , Sept. 3

This may be one of those rare Government offers to woo the private sector no one seems to be interested in taking up!

Months after it took a policy decision to entrust the management of Government-run hospitals and those linked with half-a-dozen medical colleges, the Gujarat Government is still waiting for the private sector to respond positively to the offer that has the potential to change the very face of health sector in the State.

Reacting to reports in a section of the media that the Gujarat Government has decided to "privatise" Government-run hospitals, top official sources clarified today that, first of all, there was no move to "privatise" these hospitals as they primarily serve the poor.

Policy decision

"We had taken a policy decision to entrust only the management of these hospitals to the private sector, particularly the pharmaceutical companies, and we are awaiting response from them. As and when we receive it, we would entrust management to the private service providers," a top official source told Business Line here. A Minister said the move had started as early as three years ago!

There could be no privatisation in this area as the Government-run hospitals provide only an essential service to the needy who cannot be described as customers or buyers as they pay nothing or very little for the service they get. There was no question of any disinvestments either as the Government had not made any investments in this essential service, per se, as the hospitals are not factories expected to manufacture any products, other than providing for human health, the sources said.

Outsourcing move

The Government move was merely to outsource management of the hospital facility to private hands. Once entrusted, the service providers would have to provide quality management, efficiency, modernisation and expertise in the Government-run hospitals. They would also have to set up super-specialty centres.

The State Government would continue to provide funds to these hospitals as usual. The new management would have to provide all those services and treatment available at present to the poor, who constitute almost 95 per cent of patients in such hospitals, without escalation of costs. "The free treatment available to the poor at all Government-run hospitals, or with a nominal fee, would continue. However, if the private players so desire, they could provide for air-conditioned wards, more beds and other facilities for the rich."

Provided, of course, they come forward to take up the challenge in an enterprise with philanthropic satisfaction as the only possible return.

Gujarat has 23 district-level civil hospitals, with about 4,100 beds, besides half-a-dozen medical college-associated hospitals. In addition to these, the State Government runs 270-odd community health centres and about 1000 primary health centres across the State.

© Copyright 2000 - 2009 The Hindu Business Line