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 has urged a review and rationalisation of Foreign Direct Investment (FDI) regulations governing private hospital operations and acquisitions, warning that aggressive corporatisation and international capital influx could drive up healthcare expenses and erode affordability. The committee's report highlights the transformation of healthcare from a public service to a purely capitalistic enterprise, driven by foreign investment in hospital chains.
The report suggests encouraging foreign investment in medical device manufacturing and specialised medicines, while scrutinising its role in direct hospital operations and acquisitions. The government is recommended to strictly review FDI limits for operational management and hospital acquisitions, while incentivising foreign investment in domestic medical technology and pharmaceutical production.
The committee proposes establishing efficiently managed public multi-speciality hospitals in every revenue division to reduce patients' dependence on major cities and minimise travel for tertiary care. In addition, it calls for mechanisms to standardise and cap costs of essential treatments and diagnostics in private hospitals, and incentivise private investment in multi-speciality hospitals in tier-2, tier-3, and rural areas.
The committee also suggests raising bed reservation for Below Poverty Line (BPL), Economically Weaker Section (EWS), and AB-PMJAY beneficiaries from 10% to 20%, and implementing stronger regulatory oversight of public-private partnerships to ensure commitments to affordable care are upheld.
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