State government plans to usher in PPP model in healthcare | Economic Times

BENGALURU: Karnataka has planned to bring in public-private-partnership in healthcare by allowing private players to invest in district government medical colleges and hospitals, in the backdrop of the state reeling under fiscal stress.“There are no government medical colleges in about 10 districts. To begin with, we want to let private healthcare investors establish and run medical colleges in these districts and use our existing district public hospitals as teaching centres to their colleges,” health and medical education minister K Sudhakar told ET.He said it will save a huge amount to the state exchequer, while also benefiting private players and people. “Investors can get returns through admission in colleges and also by charging private patients in government hospitals. As for the government, it will save the capital investment and the recurring cost of running hospitals and medical colleges. Since the private players have accountability to the state, we are of the view that it will also lead to better services,” the minister said.The state could reserve 30% of the seats in the new medical colleges to students from the government quota and is hoping that this could add 500 more seats.Karnataka spends about Rs 600 crore to establish a new medical college and the annual recurring cost to run government medical colleges is close to Rs 1,000 crore. Although government hospitals are located in all 30 districts, less than 20 districts have state-run medical colleges. Districts like Vijayapura, Bagalkot, Tumakuru and Davangere lack medical teaching institutes.The government may offer to give land to set up colleges depending on the availability. “But private partners should invest, maintain and manage our colleges and hospitals,” Sudhakar said, adding that the government may invite expressions of interest soon. At present, the state has partnered with private firms to provide dialysis services.Manipal Hospitals chairman Dr H Sudarshan Ballal said the initiative will create more doctors and also result in improved services. “The government and private establishments joining hands to run 300 beds district hospitals, can improve the healthcare of the district,” Dr Ballal said, citing the example of an already existing arrangement between the government Wenlock Hospital and Kasturba Medical College in Mangaluru.Besides public-private-partnership, he said there was also a great opportunity for private-private-partnership, where private medical colleges can sign up with charitable hospitals to provide healthcare services.