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EHM Home > HospiUpdate Home > Full Story

BMC seeks revival of yet another hospital

Soumya Viswanathan

The Brihan Mumbai Corporation (BMC)’s privatization initiative cell is on a fast track, having identified several centers for dose of private medicine. While it is seeking aid for Cooper Hospital, Vile Parle, from private players, it is considering handing over around 10 maternity homes, recently built, for private management. The BMC, which runs 4 major medical college-attached hospitals, 26 maternity homes and 169 dispensaries, created its privatization initiative cell in December 1999 due to its ailing financial position.

Chief superintendent Dr W S Bhatki, peripheral hospitals requests that privatization initiative not be misunderstood as privatizing existing hospitals. He says, “We are not privatizing our existing municipal hospitals. The policy is to invite private participation only when upgradation for existing hospitals runs into huge sums. The hospitals will be upgraded against some land offered for healthcare purpose.”

He clarified that only new hospitals, where there is no staff, will be handed over for private management after charging some premium and condition that around 30 per cent of beds are reserved for free treatment. Dr Bhatki says that paucity of funds is mainly because 70 per cent of their resources go into salaries.

Following this policy, it has put Cooper Hospital building, which is in a bad condition, on its revival agenda. Cooper Hospital is one of its 16 peripheral hospitals, for which the BMC will invite Expression of Interest (EOI) from private parties in a month.

Sources say that 90 per cent of the 520-bed old hospital building has been vacated and services have been shifted to other wings in the same compound and two peripheral municipal hospitals. The demolition of the building and construction of a new building would cost around Rs 15 crore. The private player will be required to construct this building and hand it over to the BMC in return for some FSI in the premises that can be utilized for setting up any kind of healthcare centre for commercial purpose.

The FSI that is available is 4 out of which 1.5 is being used by BMC for the hospital. The rest would be available to the private player. The building that the private player would build would be charged property tax and a one-time premium. The terms and conditions would depend on the bidder, clarified a senior official.

Centinary Hospital, Kandivali is being resurrected on similar lines. The building will be demolished and run as a municipal hospital in return for some FSI in the premises being given for commercial healthcare purpose. The Marol Cancer Hospital is a partially built structure, which the private participant will have to complete and pay a premium of Rs 35 lakh that has been spent by BMC in construction. A portion of beds will be reserved for poor. The selection process of partners for both these hospitals has been going on since early this year. Besides Cooper Hospital, BMC has also identified premises in Siddharth Hospital and Centinary Hospital, Govandi, where private players will run blood banks on a no-profit no-loss basis. The annual rent will be Re 1. The bidders’ suggestion in the pre-bid meeting that the contract with the BMC, who will own the land be renewed after 30 years instead of 10 years due to an investment of nearly Rs 30 lakh, has been accepted by BMC. The BMC advisory committee will oversee the running of these blood banks to ensure that they follow blood policy and keep prices at an optimum level. Talks are also on to build a hi-tech trauma unit in Bhagwati Hospital which would incur an expense of around Rs 50 lakh with the help of private participant against offer of land to run chemist shop. BMC’s first privatization initiative, handing over its newly built hospital in Andheri to the charitable Bramhakumari Trust Hospital was completed with the inauguration of hospital in May this year.

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