BMC's Public-Private Partnership Plan for Civic Hospitals Faces Backlash

Mumbai: The Brihanmumbai Municipal Corporation (BMC) is under mounting pressure from municipal workers and political leaders as it moves forward with plans to implement the Public-Private Partnership (PPP) model in some of its civic-run hospitals. This decision has sparked strong opposition, with members of the Municipal Mazdoor Union (MMU) staging a protest outside Kasturba Hospital on Tuesday.

They are demanding that the BMC reassess its move to privatize key hospital operations, citing concerns over the potential impact on healthcare access and workers' rights.

Medical Dialogues had earlier reported that the Brihanmumbai Municipal Corporation (BMC) has allocated Rs. 7,380.43 crore for healthcare in its Rs. 74,427 crore budget for the financial year 2025-26. This brings the health sector’s share down to 9.92% of the total budget, marking a decline from previous years. In 2024-25, healthcare received 12% of the budget, while in 2022-23, it was allocated 15%.

Also Read: BMC Budget 2025: Rs 7380 crore allocated for Health, Proposes PPP model for hospitals

The letter sent on Monday from MMU to Municipal Commissioner Bhushan Gagrani stated that the implementation of the public-private partnership in hospitals is strictly opposed, as it will threaten the employment of the existing BMC staff and put the minimal cost treatment available to all in jeopardy.

Also Read: Bhabha Hospital to offer Advanced Services with Inauguration of Newly Expanded Building

Speaking to Hindustan Times, Ashok Jadhav, chairman of MMU, said that the BMC had told them that the current staff would be accommodated in other hospitals. “But eventually there will not be enough positions to accommodate us,” he said. “Also, the management of hospitals which have been redeveloped, such as Bhagwati Hospital, Shatabdi Hospital, and M T Agarwal Hospital, are going under the PPP model. If they are to be run by private institutions, why did the BMC spend crores on their renovation?”

Jadhav warned that if their demands are not addressed, the union would escalate its protests with a larger demonstration in the near future.

According to Hindustan Times, Bhabha Municipal Hospital in Bandra West has a newly constructed 11-storey building with ample space to increase the superspecialty wards. “The superspecialty departments like cardiology, blood banks with advanced technologies and equipment, along with the CT-MRI department, will be given out under the PPP model,” said a senior doctor from the hospital. “The private vendors will have their own staff and equipment, which will put limitations on us while running the facility.”

The BMC’s push for the PPP model has drawn further criticism due to the failed experiment at Seven Hills Hospital in Andheri East, which is still embroiled in legal issues. However, a senior official from the BMC's PPP department reassured the public that the lessons learned from the Seven Hills experience would be incorporated into the new hospital management framework. The official mentioned, “Henceforth, as and when there is space to implement the PPP model, we will go ahead with it.”

The BMC's budget for the year, presented in February, had outlined the implementation of the PPP model across various hospitals. The budget emphasized that the new model would aim to reduce operational costs and minimize out-of-pocket expenses for patients, ensuring the sustainability of healthcare services.

The decision has sparked a political backlash as well, with local politicians expressing solidarity with the protesting workers. Former BJP corporator Prakash Gangadhare and Shiv Sena (UBT) MLA from Dahisar, Vinod Ghosalkar, have both written letters to the BMC commissioner to protest the decision.