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Public Partner: Sawai Man Singh Hospital, Jaipur
Private Partner: Vardhaman Medicare Ltd.
Target Population: Low Income Group
Target Geography: Urban
Sawai Man Singh Hospital (SMS Hospital) in Jaipur, Rajasthan is a government-run tertiary care hospital and medical college. The hospital provides free medical treatment to the poor. In 2004, the hospital entered into a Public Private Partnership (PPP) with Vardhaman Medicare Private Limited to provide Magnetic Resonance Imaging (MRI) and Computerized Tomography (CT) scan facilities to patients at low rates with the objective of providing these facilities at the lowest possible costs to patients within the hospital premises.
SMS hospital previously did not have CT scan and MRI facilities. Given the capital intensive nature of these facilities, and the requirement for efficient management systems to make them financially sustainable, it was a challenge for the Government to invest in these facilities, and operate them efficiently.
Given this context, in August 2004, SMS Hospital issued open tender, inviting applications from interested private agencies to install, operate and maintain CT scan and MRI facilities in its premises. However, political opposition led to delays, and it took two years to resolve the conflict, with the final decision being given by the High Court of Rajasthan. A two stage bidding process was adopted – the first stage involved a technical evaluation, and the agencies which qualified under the technical criteria were then invited to submit financial bids.
In this process Vardhaman Medicare Pvt. Ltd. was selected and the contract was signed for a period of seven years. As per the contract, the hospital would provide the space within its premises for a monthly rent of Rs.5000/-. The private provider is responsible for the installation of the machines and equipment, arrangement of and payment of electricity and water connections, staff salaries, security and maintenance of premises. The private provider will also maintain records and send regular reports to SMS Hospital. The contract allowed the hospital to use these facilities for teaching and training purposes relevant to the attached medical college.
The rates to be charged by the private provider have been agreed in the contract at Rs.750 for a CT scan and Rs.2500 for an MRI. Moreover, the private provider is obligated to provide free services to 20% of all patients from poor economic categories; the eligibility of patients for free services is verified by the Medical Superintendent of the hospital. The private provider can also provide services to patients from other hospitals, provided that patients from SMS Hospital are prioritized. Monitoring and evaluation of the PPP is under the purview of the Rajasthan Medicare Relief Society (RMRS).