The present government has announced plans to make hospitals into an “industry” under the Ayushman Bharat health insurance scheme and also give help to private hospitals such as land and funding. The government has issued broad guidelines for private investments into setting up hospitals in Tier 2 and Tier 3 cities.
Three categories of hospitals have been defined under these guidelines: Model I: Doctor owner (30-50 beds) Model II: Doctor manager partnership-Multispecialty (100 beds) Model III: Multispecialty (100 or more beds) The government will incentivise setting up of private hospitals like allotting unencumbered land to private hospitals on lease or through bidding, providing funding for projects which are deemed unviable by the private sector and speeding up clearances through special windows with specific timelines, compulsory empanelment of the hospitals for PMJAY and other…