BackSmall hospitals seek sops given to MSMEs
Small hospitals are facing a crisis due to a drop in people seeking regular treatmentMost of them do not have enough reserves and are facing cash flow challenges to even pay the salaries of staff
PremiumNEW DELHI : Small- and mid-sized hospitals, which are struggling to survive because of the covid-19 outbreak, have reached out to the Union health ministry, seeking benefits similar to those extended to the micro, small and medium enterprises (MSMEs).
The sector, which caters to around 85% of India’s healthcare load, is bleeding with the shift in focus to service only covid-19 cases with a range of other services taking a back seat. Small hospitals are typically 100-bed setups, while medium ones have between 100 and 300 beds. Large hospitals have more than 300 beds and offer primary, secondary, and tertiary care.
“The small- and mid-sized hospitals have suffered major losses and are facing a survival crisis. The Indian Medical Association (IMA) has reached out to us for helping the sector. We have spoken to the MSME ministry, which is willing to help, and said that such hospitals can register in the MSME category. As far as the benefits are concerned, the MSME ministry will decide on it," said Arun Singhal, special secretary, Union health ministry.
IMA had last week apprised the government about the condition of such healthcare units, saying that the survival and viability of nursing homes and small hospitals in almost all the districts and towns is important for short- and long-term affordable care.
Last month, finance minister Niramala Sitharaman had announced a ₹3-trillion emergency working capital facility for businesses, including MSMEs, ₹20,000 crore subordinate debt for stressed MSMEs, and ₹50,000 crore equity infusion through the MSME fund of funds, besides changing the MSME definition to help small businesses.
“Small hospitals and nursing homes have been facing acute financial stress because of the sharp fall in people seeking regular treatment and surgeries following the coronavirus outbreak. Most of them do not have enough reserves and are facing cash flow challenges to even pay the salaries of their workers," said Shobha Mishra Ghosh, assistant secretary general, Federation of Indian Chambers of Commerce & Industry (Ficci). Many small hospitals and nursing homes, especially in tier-II and III cities, were forced to close down as their cash flows dried up, noted a Ficci-EY study released in April.
“Any further stress or prolonged situation will lead to their existential crisis. These facilities are usually managed and run by doctors or medical entrepreneurs and have been the backbone of healthcare services in difficult and inaccessible regions," Mishra said.
There has been no change in the operational dynamics of these health institutions, which continue to grapple as their fixed cost components have remained constant, said Dr Prathap Kumar N, chairman and managing director and the chief interventional cardiologist of Meditrina Group of Hospitals, Kerala. “Even in cases where doctors and other essential and non-essential staff do not report to duty, small and mid-sized hospitals are mandated by law to pay their salaries," Kumar said.
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