Mumbai: BMC has initiated a tendering process to appoint a private operator to run the newly redeveloped 490-bed Bhagwati Hospital in Borivli on a public-private partnership (PPP) model for 30 years. But the move comes as a U-turn, taken just a year after assurances from Union minister Piyush Goyal that the hospital would not be privatised.BMC said while the hospital would be operated by a private partner, it would still be under the ownership of the civic body. As part of the agreement, the private operator will have to invest at least Rs 150 crore in hospital infrastructure. The operator will also have to pay BMC an annual lease rent of at least Rs 6.6 crore in advance. With a 10% rent increase every 10 years, BMC plans to generate a recurring revenue stream without the additional financial responsibility of running a hospital.There are fixed fines set for payment delays, and the contract would be terminated if inpatient department (IPD) services were not launched within 240 days.Last year, there were multiple protests against the move from doctors, health activists and BMC unions.In light of those protests, Goyal, who is also the MP for Mumbai North, had said, “No privatisation of Bhagwati Hospital will be done and services to patients will be offered under the Ayushman Bharat scheme. It will be run on a no-profit, no-loss basis by BMC or a charitable organisation, with services for the poor available under the Ayushman Bharat scheme.”While the tender will be restricted to eligible non-profit organisations, the argument made against such a model is that most of the city’s top private hospitals are run by non-profit organisations themselves. BMC will be appointing an officer on special duty to monitor the hospital’s day-to-day functioning and audit patient treatment and billing records.Under the proposed agreement, at least 50% of the beds will be reserved for BMC patients and beneficiaries of govt health schemes, including Mahatma Jyotirao Phule Jan Arogya Yojana (MJPJAY) and Ayushman Bharat.BMC has also proposed a cap on treatment charges under its Hospital Service Rate (HSR) framework. According to the civic body’s announcement, general outpatient department (OPD) consultation will cost Rs 10, speciality OPD consultation Rs 293, while operation theatre charges for major surgeries will be capped at Rs 1,200. The administration said the rates would be at or below those prescribed under Central Government Health Scheme, MJPJAY and BMC’s own rate structure.Health economist Dr Ravi Duggal said nowhere in the country has a healthcare PPP model benefited patients, except for ambulance services in a few states. “PPP models are proven to fail. We have the example of the SevenHills Hospital project, which had very similar terms like an ‘officer on special duty’. These conditions simply do not work on the ground,” he said.Dr Duggal added that hospitals are civic assets built using taxpayer money and BMC is obligated to run them directly through public funds to ensure there is no profiteering. “It is another way to just sell off public assets,” he said.
