Delhi govt plans feasibility studies for 11 under-construction hospitals in PPP model

The Delhi government is planning feasibility studies to operationalise 11 under-construction hospitals through the Public-Private Partnership (PPP) mode, officials said. This initiative aims to expedite the functioning of key healthcare infrastructure projects across the national capital.

The 11 hospitals include Jwalapuri Hospital with 691 beds, Madipur Hospital with 691 beds, Hastsal Hospital with 691 beds, Siraspur Hospital with 1,164 beds, an ICU-bedded hospital at Shalimar Bagh with 1,430 beds, an ICU-bedded hospital at Sultanpuri with 525 beds, CNBC Hospital at Geeta Colony with 610 beds, Guru Teg Bahadur Hospital with 1,912 beds, an ICU-bedded hospital at Sarita Vihar with 336 beds, an ICU-bedded hospital at Raghubir Nagar with 1,565 beds, and an ICU-bedded hospital at Kirari with 458 beds.

The Directorate General of Health Services, Delhi, has issued a Request for Proposal (RFP), inviting proposals from Transaction Advisors empanelled with the Department of Economic Affairs, Ministry of Finance.

Each hospital has been identified as a unique project due to variations in location, shape, size, capacity, and likely clinical services. The Transaction Advisor will conduct studies for each hospital individually and submit detailed reports. Notably, the proposed ICU-bedded hospital at Kirari, which is still in the planning phase, will also address aspects related to the initiation of construction and subsequent operationalisation.

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The consultancy will begin by preparing an Inception Report, which will serve as the foundation for all related activities. This report will include an integrated plan covering detailed tasks, activities, and a phase-wise resource deployment plan.

The Transaction Advisor will present case studies on hospital PPP projects in India and abroad, analyzing techno-commercial structures, pros and cons, and key learnings. The advisor will also prepare a Technical and Transaction Structuring Report, which will cover site and land use assessment, review of documentation, assessment of regulatory compliance, evaluation of construction progress, legal considerations, risk identification, utility service analysis, and expansion possibilities.

The infrastructure use assessment will evaluate hospital facilities against applicable norms such as the Clinical Establishments Act, NMC guidelines, Indian Public Health Standards, and NABH standards. This assessment will also consider the scope for expanding clinical services, modifications required for support infrastructure, parking and ambulance access, and phased development plans.

A healthcare demand assessment will involve a catchment area analysis, review of existing hospitals, identification of service gaps, and the definition of an appropriate service mix and hospital configuration, including bed allocation, OT, ICU, and OPD services.

Financial analysis will address revenue models, cost estimates, financial statements, funding and financing mechanisms, and safeguards for cashless treatment for referred patients.

The PPP option analysis will define the roles and responsibilities of the involved parties, identify suitable PPP models, outline commercial arrangements, and determine patient mix, including both free and paid patients.