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July 29, 1998

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Private touch at public spots -- it's good for health, discovers Tamil Nadu

Shobha Warrier in Madras

For the first time in India, Tamil Nadu will involve the private sector in the upkeep of government hospitals and primary health centres. The project is said to be the baby of former Union industry minister Murasoli Maran.

Even though negotiations with the business houses started in November 1997, the DMK government could not make much headway. For the private sector had some apprehensions as the scheme centred around "government" hospitals. And if the hospitals maintained by a particular business house were not up to the mark, it was bound to affect its image.

Some persuasion later, 19 business houses agreed to sign MoUs (memorandum of understanding) with the state. Some of the prominent names are Ashok Leyland, TVS Suzuki, the MRF group, Titan Industries, Madras Cements, the TTK group and Sterlite Industries.

The move sparked rumours that the government is privatising the health sector. But the state government scotched them. Health Secretary N Sundaradevan said, "Some people think we are handing over the hospitals to private people. We are not doing that. We are involving the private sector in the maintenance of our hospitals."

Elaborating, he said, "If a business house agrees to maintain a hospital building, they will take care of things like repair works, the external appearance, interiors, looks, etc. They are allowed to gain publicity by way of display of their logos, advertisements, etc, in the hospital premises."

Besides maintenance, the government has offered two more options of donating and maintaining medical equipment, supply of medicines or paying salary of one or two hospital employees, something that has not become very popular. The health secretary said business houses displayed an inclination to maintain hospital buildings. There are exceptions like Sterlite Industries in Tuticorin which has committed Rs 4 million to building maintenance plus medical equipment and medicines.

Explaining how the government wooed the corporates, Sundaradevan said first a list of all the hospitals and primary health centres was given to them and they were asked to choose the hospitals, depending on factors like proximity to respective areas of operation. For instance, Madras Cements has three factories in three places; so, it chose five primary health centres in these locations. The gesture leaves one with an impression that the company cares for the local community.

Sundaradevan is very pleased that the corporates have volunteered to invest Rs 13 million so far in the project. "But what is more important is their commitment," he said.

He said things are bound to improve as the sponsors will constantly watch the hospitals' performance lest their image should take a beating. "We will also get feedback from them about things going wrong, shortage of medicines, unavailability of doctors, impolite staff . This will improve our health scene."

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