Centre pushes PPP model to boost healthcare infrastructure

The Union government has urged State governments to increase the use of the Public–Private Partnership (PPP) model to expand healthcare infrastructure and improve medical services.

States have been asked to prepare project plans for the next three years. The Centre said the health sector has strong potential for PPP-based development.

Union Health Minister J.P. Nadda has written to Andhra Pradesh Health Minister Satya Kumar Yadav in this regard. He cited the success of PPP projects in other sectors and said the model should now be extended to healthcare.

To encourage private participation, the Centre has offered financial support under the Viability Gap Funding (VGF) scheme. Up to 60 per cent of project costs will be provided for medical colleges and healthcare infrastructure. For pilot projects, support can go up to 80 per cent.

The Centre will also provide 50 per cent support for operational expenses for the first five years. The VGF assistance will be shared equally by the Centre and the States.

Mr. Nadda said the PPP model would help expand healthcare facilities and improve the quality and accessibility of services. He added that it would also improve transparency and efficiency.

He noted that projects worth over Rs 2,000 crore had already been approved under the scheme. At present, 919 dialysis centres are operating under the PPP model across 20 States.

The Andhra Pradesh government has been advised to set up a dedicated PPP Cell. Responding to the letter, Mr. Satya Kumar said the State was working to develop 10 medical colleges under the PPP model.