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Foreign participation in medical education: Centre cites NMC norms, says hospital charges are state subject

New Delhi: The establishment of new medical colleges is governed by the Existing Courses and Assessment and Rating Regulations, 2023, framed by the National Medical Commission (NMC), and only entities specified under these rules are eligible to apply, Union Health Minister Smt Anupriya Patel informed the parliament.
Replying to a series of questions in the Lok Sabha on "Foreign Participation in Medical Education," the Minister explained that the 2023 regulations provide a comprehensive framework for the establishment of new medical institutions, outlining the categories of eligible entities, prescribed eligibility criteria, required documentation, procedures for assessment and rating and the penalties applicable in cases of non-compliance.
The Minister shared the information in response to a parliament member who sought to know whether the government proposes to permit or has already permitted foreign companies or foreign Institutions to establish or operate medical colleges and associated hospitals in the country; if so, the details thereof, including the policy framework, eligibility criteria and regulatory approvals required for such institutions; impact of such institutions on medical education standards and healthcare costs, particularly the fees charged for medical treatment in hospitals attached to such colleges, any mechanism exists to regulate or cap the treatment charges, consultation fees and procedure costs levied by hospitals run by foreign-owned or foreign-managed medical institutions; and the reasons therefor along with the safeguards proposed to protect patients from excessive or unaffordable healthcare costs.
In response, the Minister stated, "The Establishment of New Medical Institutions, Starting of New Medical Courses, Increase of Seats for Existing Courses & Assessment and Rating Regulations, 2023, framed by the National Medical Commission (NMC), provides a comprehensive framework for the establishment of new medical institutions outlining the categories of eligible entities, prescribed eligibility criteria, required documentation, procedures for assessment and rating and the penalties applicable in cases of non-compliance."
In accordance with these Regulations, the following entities are eligible to apply for the establishment of a new medical institution:
a. The Central Government; or
b. The State Government or State Governments in partnership; or
c. The Union Territory; or
d. A university duly established in India; or
e. An autonomous body promoted by the Central or the State Government by or under a statute, and has no conflict of objectives for undertaking medical education by starting a medical institution; or
f. A society registered under the Societies Registration Act, 1860 (21 of 1860) or any respective statute meant to establish and regulate Societies in the respective State; etc.
Further, the Minister stated, "as per the Seventh Schedule of the Constitution, “Health” is a State subject, and it is the responsibility of the respective State/UT Governments to monitor and address cases of excessive charges levied by private hospitals and to take action to prevent such practices. The Government of India, however, has enacted the Clinical Establishments (Registration and Regulation) Act, 2010 (CE Act). The States / UTs which have adopted the CE Act are primarily responsible for regulating their hospitals including private hospitals as per provisions of the Act and Rules thereunder to ensure provision of affordable and quality healthcare to patients."
Also read- 46,163 MBBS, 24894 PG medical seats added in last 5 years: MoS Health
MA in Journalism and Mass Communication
Exploring and learning something new has always been her motto. Adity is currently working as a correspondent and joined Medical Dialogues in 2022. She completed her Bachelor’s degree in Journalism and Mass Communication from Calcutta University, West Bengal, in 2021 and her Master's in the same subject in 2025. She mainly covers the latest health news, doctors' news, hospital and medical college news. She can be contacted at editorial@medicaldialogues.in

