Panel seeks review of FDI in private hospitals, warns of aggressive corporatisation, rising healthcare costs
Foreign capital should be encouraged in the manufacture of medical devices, consumables and specialised medicines for rare diseases, while its application in the direct operation and acquisition of hospitals needs greater scrutiny, the report by the Parliamentary Standing Committee on Health and Family Welfare says
A parliamentary committee in India has urged a review and rationalisation of Foreign Direct Investment (FDI) limits in the operation and acquisition of private hospitals, expressing concerns that aggressive corporate takeovers and inflows of foreign capital could raise healthcare costs and erode the affordability of medical services.
The committee warned that foreign investment in private hospitals was enabling larger corporations to acquire mid-sized hospitals at lower costs, transforming healthcare into a "purely capitalistic enterprise" and potentially driving up the prices of medical procedures across the entire healthcare system. The report, presented by the Department-related Parliamentary Standing Committee on Health and Family Welfare, distinguished between foreign investment in hospital operations versus investment in healthcare manufacturing.
While encouraging foreign capital in the production of medical devices, consumables, and specialty medicines for rare diseases, the committee recommended stricter scrutiny of its use in direct hospital operations and acquisitions.
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