Struggle of Small Hospitals in Pune, Over-Regulation Threatens Closure

Healthcare experts warn that small and medium-sized hospitals in Pune are facing a crisis, with many struggling to stay afloat due to over-regulation.

In Pune alone, there are 899 hospitals registered under the Maharashtra Nursing Home Registration Act 1949 and Regulations 2021, overseen by the Pune Municipal Corporation (PMC). Among them, over 400 are small and medium-sized establishments.

Over the past three years, more than 35 hospitals have shut down, and ownership of 50 others has changed hands. Compounding the issue, less than 50 hospitals are enrolled for cashless services with insurance companies.

The Indian Medical Association (IMA) and Hospital Board of India (HBI) argue that the strict regulations in the Maharashtra Nursing Home Registration Act (MNHRA) 1949 and The Clinical Establishments (Registration and Regulation) Act, 2010, are stifling these hospitals. These smaller facilities play a crucial role in providing accessible and affordable healthcare to residents.

The burden of over-regulation has escalated operational costs, leading to financial losses and closures.
Limited revenue sources and staff exacerbate the challenge for these hospitals.

In response, the IMA and HBI propose that accreditation, rather than stringent regulation, should be the focus for these hospitals. They advocate exempting small and medium hospitals with up to 50 beds and clinics from certain regulations.

This, they argue, would ensure quality while easing the financial strain on these vital healthcare providers.