PPP Super Specialty Hospitals in Punjab
Country of Operation
Target income level
- Bottom 20%
- Lower-middle income (20-40%)
- Middle-income (40-60%)
- Higher middle-income (60-80%)
- High-income (80-100%)
- Noncommunicable disease(s)
- Secondary/tertiary care
SummaryGovernment of Punjab and Max Healthcare Institute in Public Private Partnership are setting up a super specialty healthcare facility for cancer and trauma care. They provide healthcare services with focus on treatment for cancer and trauma care in Mohali and cardiac care in Bhatinda.
Key program components
This hospital will meet the growing need for a center for cancer treatment, trauma care, and cardiac treatment. Incidence of cancer in India is increasing due to increased life expectancy, and there are very few treatment centers in the State of Punjab for cancer treatment. The need was felt to develop two hospitals at Mohali and Bhatinda to provide advanced facilities in cancer care for people in Punjab and neighboring states.
Due to the high incidence of traffic accidents, there is also a need for a trauma care facility in Mohali. Setting up a super specialty hospital involves huge capital expenditure, as well as private providers who deliver quality care, so it was considered a good synergy to set up these hospitals in a Public Private Partnership in the vacant land in the premises of an existing public hospital providing secondary care services.
In the present model Max Healthcare Institute Ltd (private provider) shall construct and manage the Greenfield super specialty hospital on Design, Build, Operate and Transfer basis for a period of 50 years (concession period); the Government of Punjab shall provide the land required for hospital to Max Healthcare Institute Ltd, who will provide the healthcare services. Max Healthcare Institute Ltd will pay the Government of Punjab an upfront consideration (bid criteria) and 5% of the Gross Revenue as annual Concession Fee.
Government of Punjab nominates its representative on governing/management board of the Hospital. Max Healthcare Institute Ltd is authorized to provide (without obligation) super specialty services to patients. Whereas provision of Cancer/Cardiac/Trauma care mentioned above are mandatory, Max Healthcare Institute Ltd can determine the charges to be collected for treatment from patients, will conduct awareness programs, cancer detection and screening programs for cancer.
The contract was designed by the Government of Punjab, its contracting organizations Punjab State Health Systems Corporation and Punjab Infrastructure Corporation Limited also availed services of transaction advisor IL and FS Development Corporation Limited, Private providers were consulted at various stages of developing the model and their inputs were considered while drafting the contract. Interested organizations were requested to submit request for proposal with their technical capabilities, The contract was awarded to the private provider submitting request for proposal who is technically qualified and has bid for highest upfront payment.
To incentivize and provide greater autonomy Max Healthcare Institute Ltd was allowed to determine the charges to be collected for treatment of patients. In the event of non fulfillment of conditions laid down for pre implementation phase by the private provider the construction performance security deposit would be forfeited. A steering committee constituted by Government of Punjab will take care of the contract management.