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Government hospitals to go private in UP

By jpgupta |

3rd May 2010

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.

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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