In U-turn, BMC seeks private partner to run revamped Bhagwati Hospital in Mumbai for 30 years

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.