Mumbai’s BMC taps KPMG as it tenders 6 hospitals to private firms
- Mumbai’s BMC tendered six health facilities to private operators for up to 30 years.
- Contracts run 15 years, with an option to extend by another 15.
- KPMG Advisory Services will help run BMC’s wider PPP hospital pipeline.
- KPMG’s proposed fee is ₹3.45 lakh (about $3,600) a month.
MUMBAI, INDIA — Mumbai’s civic body has invited private operators to run six public health facilities on contracts of up to 30 years, while seeking after-the-fact approval for KPMG to build out a wider pipeline of hospital partnerships.
Both moves hand hospital operations, and the planning behind them, to outside firms as opposition politicians push to halt the tenders.
Six facilities on 30-year terms
The Brihanmumbai Municipal Corporation (BMC) invited tenders for the operation and management of the six facilities under its public-private partnership (PPP) model, according to the Hindustan Times.
Contracts run for an initial 15 years, with the option to extend them by another 15.
The facilities are in Dahisar (west), Chandivali, Mogra, Khar (west), Mankhurd and Vikhroli, and include hospitals, a maternity home and a dispensary.
KPMG to shape the wider pipeline
KPMG Advisory Services has been appointed to develop a policy framework, prepare tender documents and manage bidding for the BMC’s PPP healthcare projects, the Free Press Journal reported on Oct. 12.
Projects under consideration include the 490-bed Bhagwati Hospital, the 470-bed Shrimati M.T. Agarwal Hospital in Mulund and the 150-bed Oshiwara Maternity and Child Care Hospital in Jogeshwari.
The consultancy also covers diagnostic centers, dialysis units, catheterization labs, blood banks and proposed medical and nursing colleges, at a proposed fee of ₹3.45 lakh (about $3,600) a month.
The BMC is asking its Standing Committee for after-the-fact approval because the consultancy tender was not published in newspapers, as the city’s municipal law requires for spending above ₹3 lakh (about $3,150).
Opposition seeks a halt
The Congress party alleges the civic body is handing public healthcare assets worth ₹600 crore (about $63 million) to private operators without adequate safeguards.
Ashraf Azmi, Congress group leader in the BMC, has demanded a guarantee of free maternity services and at least 30% of beds reserved for patients below the poverty line.
He also wants the tenders suspended until the elected Standing Committee and general body debate the policy.
“The proposal could set a precedent for the privatisation of Mumbai’s more than 200 civic dispensaries and 20 maternity homes,” said Azmi.
What hospital operators should weigh
Mumbai’s model goes well beyond healthcare outsourcing of support work: private partners would run entire facilities for up to three decades.
Providers that want outside help without handing over clinical operations can start with administrative functions such as revenue cycle management (RCM), and compare partners on the top BPO companies worldwide list.
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