Mumbai civic body invites bids to run 490-bed Borivali hospital under 30-year PPP model

The Brihanmumbai Municipal Corporation BMC has initiated the tendering process to operate the redeveloped Shri Harilal Bhagwati MultiSpeciality Hospital in Borivali West under a 30year publicprivate partnership PPP model The 490bed facility equipped with 90 intensive care unit ICU beds and advanced medical infrastructure is expected to strengthen healthcare services in Mumbairsquos western suburbsThe civic body said the arrangement would bring in private investment and medical expertise while ensuring that ownership of the hospital remains with the BMC At least 50 per cent of the hospitalrsquos beds will be reserved for BMC patients and beneficiaries of government healthcare schemesBMC to retain full ownershipThe hospital land in Eksar village and the redeveloped building will remain entirely under BMC ownership The private partner will operate the facility for a fixed period under the terms of the agreementThe operator will also be required to display a prominent signboard in Marathi stating that the property belongs to the Mumbai Municipal CorporationThe civic administration clarified that the PPP arrangement should not be viewed as privatisation intended to increase treatment costs for ordinary patients50 per cent of beds reserved for BMC patientsAt least half of the hospitalrsquos total beds will be reserved for BMC patients and beneficiaries of government healthcare schemes including the Mahatma Jyotirao Phule Jan Arogya Yojana MJPJAY and Ayushman Bharat PMJAYABAccording to the BMC patients accessing treatment through these provisions will receive the same standard of care as private patients Admissions and treatment will follow a firstcome firstserved systemA digital display board near the main reception will provide realtime information on reserved beds including occupancy and availabilityOPD and surgery charges cappedThe BMC has prescribed treatment rates under its Hospital Service Rate HSR structure to prevent arbitrary or excessive charges by the private operatorThe rates specified in the release include Rs 10 for a general outpatient department OPD consultation Rs 293 for a speciality OPD consultation and a maximum of Rs 1200 in operating theatre charges for major surgeriesThe civic body said the rates would be lower than or comparable to those under the Central Government Health Scheme CGHS MJPJAY and its existing rate structurePrivate operator to invest at least Rs 150 croreUnder the proposed agreement the private operator will have to invest a minimum of Rs 150 crore of its own funds in medical equipment infrastructure and other hospital facilitiesThe hospital is expected to house a modern catheterisation laboratory Cath Lab MRI and CT scan facilities along with nine advanced operation theatresThe BMC said the investment would help bring in advanced medical infrastructure without requiring the civic body to make an equivalent direct investmentBMC to receive minimum annual rent of Rs 656 croreThe private operator will be required to pay the BMC a minimum annual lease rent of Rs 656 crore in advance The rent will increase by 10 per cent every 10 years according to the civic bodys releaseThe arrangement is expected to generate revenue for the BMC while transferring the financial risks associated with equipment maintenance and clinical operations to the private partnerOnly eligible nonprofit organisations can bidThe tender will not permit large commercial companies to participate independently Eligible bidders must be nonprofit organisations registered under Section 8 of the Companies Act 2013 or authorised public charitable trustsApplicants must also have at least 10 years of experience in social service and an average annual charitable expenditure of Rs 100 crore over the preceding five yearsBMC to monitor hospital operationsThe Municipal Commissioner will appoint an officer on special duty OSD to oversee the hospitals operations The private operator will have to provide an airconditioned office for the officer at its own expenseThe BMCappointed officer will also have access to the hospitals Hospital Management Information System HMIS allowing the civic body to monitor patient treatment and billing recordsThe BMC has prescribed penalties for contractual violations Delayed lease payments will attract annual interest of 15 per cent while delays in commencing services will attract a penalty equivalent to 25 per cent of the annual rent for each year of delayIf inpatient department IPD services are delayed by more than 240 days the contract will be cancelled and the BMC will take back control of the hospitalA dedicated grievance redressal cell will also be set up at the hospital with complaints required to be resolved within 15 daysProject aligned with Maharashtra PPP Policy 2026The BMC said the project was aligned with the Maharashtra governments PublicPrivate Partnership Policy 2026 which encourages local selfgovernment bodies to use privatesector expertise to improve public servicesThe civic body said the model would combine private investment and operational expertise with public ownership and safeguards for patients particularly those from economically weaker sectionsHowever the specific eligibility criteria treatment rates and terms governing the 50 per cent bed reservation will be subject to the tender and the final agreement