Cash-strapped Wadia Hospitals face closure

Wadia Hospitals, which include the city’s oldest children’s specialty hospital, face closure after its administration declared bankruptcy. As immediate relief, the

Wadia Hospitals, which include the city’s oldest children’s specialty hospital, face closure after its administration declared bankruptcy. As immediate relief, the Brihanmumbai Municipal Corporation (BMC) on Friday released Rs 14 crore for payment of salaries. Wadia Hospitals claims the civic body owes it Rs 125 crore.

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Wadia Hospitals comprises Bai Jerbai Wadia Hospital for Children and Nowrosjee Wadia Maternity Hospital. Nowrosjee Wadia Maternity Hospital was set up in 1926 and Bai Jerbai Wadia Hospital, India’s first specialised paediatrics hospital, was set up in 1929.

BMC takes responsibility of 75% of Wadia Hospitals’ upkeep, which is paid on a quarterly basis. No funds have been released in the past three months, which has pushed the hospital to bankruptcy. According to hospital sources, BMC owes Rs 96.59 crore to Bai Jerbai Wadia Hospital for Children and Rs28.5 crore to Nowrosjee Wadia Maternity Hospital.

On Nov 28, a letter was posted in Bai Jerbai Wadia Hospital, which read, “All employees are hereby informed that due to non-receipt of grants from Municipal Corporation of Greater Mumbai, and left with no fund, salaries and wage payments cannot be made on due date of this month i.e. November 2019.” HT has a copy of the letter.

The issue of pending dues was raised at the meeting of BMC’s standing committee on Wednesday by leader of Opposition, Ravi Raja. Some corporators said Wadia Hospitals were not providing treatment free of cost, which had led to BMC stopping funds. However, Raja said, “Due of this [non-payment of funds by BMC], salaries of hospital staffers are being delayed. The hospital is almost at the verge of closure.”

On Friday, BMC released Rs 3.78 crore to Nowrosjee Wadia Maternity Hospital and Rs10.6 crore to Bai Jerbai Wadia Hospital. “We held a meeting where the mayor handed over a fund of Rs14 crore to the hospital authority. We are trying our best so that the hospitals don’t close down,” said Amay Ghule, chairperson of Public Health Committee, BMC.

However, hospital authorities say these amounts are not enough. Bai Jerbai Wadia Hospital is struggling to sustain the neonatal intensive care unit (NICU), which has 125 beds. “The money that has been provided to us is for the salary of the staffers, but what about the expenses of the ventilation? We are saving our last money for the treatment of patients in NICU, but BMC doesn’t care about them,” said a hospital official on condition of anonymity.

On Thursday, the workers’ union submitted a letter to the hospitals’ authorities, threatening to go on strike. “Earlier, the state government stopped the grant at the hospital and now, BMC has also stopped it. Hundreds of hospital staffers are struggling as they haven’t got their salary,” said Prakash Reddy, general secretary, Laal Bavta Vahtuk Kamgar Union.

Despite repeated calls, chief executive officer of Wadia Hospitals, Dr Mini Bodhanwala was not available for comment.