Delhi Public Hospitals to Boost Diagnostic with Public-Private Partnership

To address the diagnostic gap in government hospitals, the Delhi cabinet last month decided to install MRI, CT, and Ultrasound machines via PPP.

The Delhi government has planned to hire a consultant to outline the framework for commissioning and operating radiological diagnostic services at state-run hospitals under a PPP model.

According to the officials, the consultant will assess shortlisted hospitals for location, accessibility, population served, demand for radiological services, nearby lab offerings, and service gaps that PPP can address.

This step came into view after Delhi Health Minister Pankaj Singh announced the government plan to start MRI and CT scan services in state-run hospitals at subsidised rates to make it affordable for patients in need.

The consultant will also carry out a financial analysis of the project and will help in the legal onboarding of the service provider.

Moreover, the consultant will look into capital and operational expenditure estimates, and revenue, and will also carry out cash flow analysis, requirement of the viability gap funding and other parameters.

The official added, “Commercial arrangements, profit and cost-sharing, identifying potential risks in the PPP model, and developing a risk mitigation strategy will be done by the consultant.”

In response to inadequate diagnostic infrastructure, the Delhi cabinet has approved a PPP initiative to install MRI, CT scan, and ultrasound equipment in 35 state hospitals, where only Lok Nayak, GB Pant, and Indira Gandhi Hospitals are currently equipped with MRI machines.

The consultant, or the transaction advisor, will assist in selecting credible private partners for operating and maintaining the services.

“From preparing and submitting the inception report to working out an integrated plan that covers detailed tasks and activities, and a resource deployment strategy, the transaction advisor will help at every stage,” said the official.