The Delhi government has launched feasibility studies to operationalise 11 under-construction hospitals across the city under the Delhi healthcare PPP project. Together, these facilities account for more than 11,000 beds and could significantly ease pressure on existing public hospitals. At present, government hospitals in Delhi handle close to 70% of inpatient demand despite limited capacity. However, many newly built hospitals remain idle due to staffing gaps, operational delays, and funding constraints. To overcome these challenges, the government has opted for a Public-Private Partnership approach that brings in private expertise while keeping assets publicly owned. Accordingly, the Directorate General of Health Services has issued a Request for Proposal to Transaction Advisors empanelled with the Department of Economic Affairs. These advisors will help structure viable operational models and accelerate commissioning. As a result, the initiative aims to improve service delivery, shorten patient wait times, and ensure better use of public investments already made.
Each hospital under the programme differs in size, layout, and clinical focus, which makes a single operating model impractical. Facilities range from the 336-bed ICU-supported hospital at Sarita Vihar to the nearly 1,912-bed Guru Teg Bahadur Hospital. Several sites, including Shalimar Bagh, Sultanpuri, and Kirari, are designed with a strong focus on critical care. Therefore, authorities have treated every hospital as a separate project. Transaction Advisors will review land use, statutory approvals, construction progress, and readiness for operations on a case-by-case basis. This approach allows flexibility in selecting suitable PPP structures such as management contracts or hybrid operation models. Global experience shows that hospital PPPs perform better when demand patterns and asset readiness shape the commercial structure. As a result, the Delhi healthcare PPP project is likely to use differentiated frameworks rather than a single concession template, reducing implementation risks and improving long-term sustainability.
The consultancy assignment places strong emphasis on linking infrastructure readiness with healthcare outcomes. Work will begin with an Inception Report that sets out timelines, tasks, and resource deployment. Advisors will then assess hospital facilities against standards under the Clinical Establishments Act, National Medical Commission norms, Indian Public Health Standards, and NABH guidelines. In parallel, healthcare demand studies will examine catchment populations, nearby hospitals, and service gaps. These findings will guide decisions on bed distribution, ICU capacity, operating theatres, and outpatient services. Financial analysis will focus on completion costs, operating expenses, and realistic revenue projections. Importantly, the structure will include safeguards for free and cashless treatment of referred patients. In similar healthcare PPPs across India, governments often reserve 25–40% of beds for subsidised care. Such measures help maintain equity while allowing private partners to operate efficiently and meet performance benchmarks.
This initiative could influence how other Indian states approach large hospital projects. Traditionally, healthcare PPPs in India focused on diagnostics, dialysis, or support services rather than full hospital operations. However, rising urban healthcare demand and fiscal pressures are changing this outlook. Cities such as Mumbai and Bengaluru have already started evaluating hybrid healthcare PPP models. At the same time, multilateral agencies are increasing advisory support for hospital PPPs. International experience from countries like the UK and Australia highlights the importance of clear contracts and outcome-based payments. Against this backdrop, the Delhi healthcare PPP project stands out for its phased planning, detailed risk assessment, and focus on expansion potential. If implemented well, the programme could activate dormant assets, add thousands of functional beds, and provide a practical model for other urban healthcare systems in India.
