Maharashtra govt gives nod to policy to set up medical colleges, hosps with help of private sector
The policy is expected to boost the number of doctors, including intensivists and specialists, in the state, as well as augment the medical infrastructure in the state
In a bid to provide better medical services across the state, address the shortage of qualified doctors and bridge the gap in medical education, the state cabinet on Wednesday cleared a policy to allow setting up new medical colleges and super speciality hospitals on public-private partnership (PPP) basis.

The policy is expected to boost the number of doctors, including intensivists and specialists, in the state, as well as augment the medical infrastructure in the state.
The model will help set up new medical colleges and specialised hospitals and also link new private medical colleges with existing functional district hospitals to increase medical seats. Medical education department minister Amit Deshmukh said that the policy will help districts that do not have medical colleges so far.
“This policy will be beneficial in districts where there are no medical colleges so far. It will boost the standard of medical education and also augment the medical services in the state. We are confident that the gap in the number of doctors, intensivists etc, which was felt during the pandemic in Maharashtra, will be reduced by this policy. The numbers of doctors, nurses, paramedics, super-specialists will be filled up through this,” the minister said after the cabinet meeting.
According to officials, 20 new medical colleges and super speciality hospitals can add 350 doctors including Doctor of Medicine (MD) and Master of Surgeon (MS) in the state, taking the total to 1,000 in three years. In 10 years, 1800 new medical colleges seats for MBBS will be created. Besides that, the additional medical infrastructure will help cater to 10 million patients in the OPD sections, 2,500 surgeries in one year.
“From 2026, 200 additional intensive care units will be created, and the hospitals will be able to provide about 300,000 outpatients and about 75,000 admissions per year. The establishment of new medical colleges and speciality hospitals through public-private investment will create skilled and unskilled employees in small towns,” a statement from CMO said.
Deshmukh added that the district hospitals where tertiary care is provided can be upgraded and modernised through this policy and a medical college can come up in the same vicinity. “Our intention is to create world-class medical infrastructure in the districts. Similarly, greenfield projects can also come up where the government will provide them with the land, where the interested private player will set up a medical college, super speciality hospital and other required amenities,” he said.
To give a push in setting up of colleges and hospitals in rural and remote areas in the state, the state government could provide some incentive to private players. The incentive would be a part of the Industries Department’s Package Scheme for Incentives, officials said. He said that 17 districts in the state do not have a medical college.
The statement from CMO added that the viability difference fund (VGF) will be financed by the Central government, as per the Niti Aayog’s policy. The VGF is a key bidding parameter. “In view of the continuous population growth, it is imperative to increase the number of doctors in the state from the point of view of public health and for this, it is necessary to set up new government medical colleges in the state,” it said.