Setting up a Hospital / Clinic in India is not as easy as it sounds, but we are here to give you some pointers about how to start a clinic / hospital in India, License & legal requirements for opening a Hospital.
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Healthcare is the basic need and right of every citizen of our country. Hospitals, nursing homes, clinics, medical camps etc form the platform for this healthcare delivery, assisted by doctors, nurses and other medical staff. Unfortunately, India has a huge and growing population, but a less number of hospitals. India has one hospital bed for 879 people. This is far below the world average of 30 hospitals per 10,000 population. According to the WHO, India needs 80,000 more hospital beds every year to meet the demands of its growing population. This highlights the need for more hospitals to be built at a faster pace.
Here, we consider the necessary steps & legal requirements to set up hospitals in India. Hospitals can primarily be of two types- government or private. Further, they can be general, speciality or multispecialty hospitals. Following are the pointers one needs to keep in mind and set in place for setting up a private hospital in India:
This has to be chosen well, because if there are already some hospitals in the locality, then it will be difficult to pool in patients. Also, the hospital needs to be set up in an area which has good transportation facility or is close to a railway station. Considering the cost of real estate, a huge financial investment is required.
One has to be sure what set-up is planned and what infrastructure is required. A pediatric, orthopedic, gynecologic, oncology, pathology, imaging, etc facility in the hospital all require different facilities.
Take care of all these:
Multiple medical laws and ethics must be followed at every step. A set of guide lines and eligibility criteria have been put forth by our government for hospitals, which provide services to central government health scheme beneficiaries.
A tremendous amount of planning, large finances, approvals, certifications, licences and guide lines need to be followed while setting up a hospital in India. It might be well worth it at the end, but needs ample time and mammoth effort to pool together the resources in place.
Setting up a hospital / Clinic in India isn’t a smooth sail. The complex course of regulatory approvals and associated paperwork is undoubtedly cumbersome to deal with; however, more daunting is the cost constraint. Not only establishing a health care facility but its on-going maintenance demands full-fledged financial planning for hospital set-up.
Registration under the clinical establishment act, 2017 This act was enacted by the central government and is being adopted by states of India. It needs a one-time registration for a premise towards being operated as a hospital. The registration must be done by the respective state government that has adopted this act
This act is applicable when the hospital established it under the ownership of a corporation. The act needs that the corporation is registered and fulfills the requirement of incorporation like memorandum of association, articles of association, capital structure formation, securities allotment, account audits, etc.
This comes under the Ministry of Corporate Affairs, Government of India. It is a compulsory registration required for each director who wants to be a part of a corporation. It is a onetime registration for directors.
In case the hospital is being established under the ownership of society, the society registration act is required.
See the reference below for different health care services/ speciality and the license under relevant laws:
The cost to set up a hospital in India depends on two per-determinants:
The land and construction cumulatively require 50-60% of the total capital cost. Once you’re sorted with finances for the land or construction project, the entire set-up that follows to get the health care facility fully functional comes down to roughly one half of what’s already spent in acquiring or building the premises from the facility.
The medical equipment, consumables, and ambulatory services though doesn’t claim the lion’s share in Setting up a small hospital in India, it’s a recurrent cost.
Implementing cost-effective procurement is an indispensable long-term benefit to the organization and best to be also the part of initial financial planning for hospital set-up.
In General, the following needs to be in the layout of a basic healthcare facility and we’ve put together an approximate cost-capping in setting up and making the concerned department fully-functional in delivering competent health care to the masses.