Earlier, the Niti Aayog had sent a draft copy to all state chief secretaries for their comments and views on the policy in which the states will have to allot 50 beds in all 300-bed state-run hospitals to private players for the private-public partnership project in towns other than metropolitan cities.

According to the contract, the state has to sign a lease for 30 years over parts of district hospital buildings and also need to share their back-end services such as blood banks and ambulance services with the private players. Along with this, the state government could also provide part of funds to the private players in order ro set up new hospitals.

However, States like Tamil Nadu have rejected the scheme stating they have been able to provide quality care through the state health insurance scheme that covers 70% of the population at 10% of the health budget.

The main objective of the National Health Policy 2017 is to achieve the highest possible level of good health and well-being, through a preventive and promotive health care orientation in all developmental policies, and to achieve universal access to good quality health care services without anyone having to face financial hardship as a consequence. In order to provide access and financial protection, the policy proposes free drugs, free diagnostics and free emergency care services in all public hospitals. The primary aim of the policy is to inform, clarify, strengthen and prioritize the role of the Government in shaping health systems.

However, under the model contract, the private hospitals will be providing treatment for cancer, heart diseases and respiratory tract ailments at prices that are not higher than that of government health insurance schemes. Also, the district government hospital will be expected to share its ambulance services, blood blank, physiotherapy services, bio-medical waste disposal system, mortuary services, parking facilities, electricity load, in-patient payment counters and hospital security with the private enterprise running out of its campus. The contract also says that for treating non-communicable diseases, the hospitals will need to have out-patient departments, in-patient beds, beds for intensive care, operation theatres, centre for angioplasty and angiography, laboratories and radiology services.