Govt to back pvt hospitals abroad

The central government is considering tapping private Indian healthcare majors to develop and operate hospitals and healthcare facilities in foreign countries, particularly in Africa, two people aware of the matter said on the condition of anonymity.

- Shashank Mattoo & Somrita Ghosh

Under the proposal, the government can utilize its lines of credit (LoCs) to assist the construction of health facilities in foreign countries, said the first of the two people. The second person said that once built, these facilities can then be turned over to private Indian healthcare providers to run on commercial terms.

Such efforts in strategically important developing countries have been a key part of India's diplomacy, and the current proposal to involve private healthcare entities is expected to improve the effectiveness of these efforts. In addition, private companies will acquire a better foothold in developing country markets.

Queries mailed to the external affairs ministry and health ministry remained unanswered till press time.

Earlier, LoCs provided by government agencies like EXIM Bank would be used by partner countries to contract Indian service providers for construction of hospitals and other health infrastructure. The hospitals would then be operated by the host country, but this model hasn't worked very well.