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ESIC is the healthcare wing of the labour ministry and provides medical services to millions of industrial workers (PIB)
ESIC is the healthcare wing of the labour ministry and provides medical services to millions of industrial workers (PIB)

Labour ministry's ESIC will run all its hospitals as state medical services lag

  • The corporation runs 45 dispensaries and 49 hospitals directly out of the 1520 ESI dispensaries and 159 hospitals across India
  • ESIC has around 26 under-construction hospitals and 16 at the conceptual stage

New Delhi: The union Labour ministry run Employees State Insurance Corporation (ESIC) Tuesday said it will directly run all the newly constructed hospitals without giving them to states due to deficient medical service being provided there to industrial workers.

“Several representatives have been received about deficient services in ESI hospitals run by State Governments due to poor availability of equipment and doctors. In view of demand from both workers and employees and with the objective to provide better medical services to beneficiaries, ESI Corporation...has decided to directly run by itself all newly constructed hospitals and those that are approved in future unless the State Government insists to run the hospital," ESIC said Tuesday.

ESIC is the healthcare wing of the labour ministry and provides medical services to millions of industrial workers from primary care to tertiary care. The corporation run around 1520 ESI dispensaries and 159 hospitals across India. Out of these 45 dispensaries and 49 hospitals are directly run by ESIC and remaining ones are managed by respective state governments but funded by the corporation.

Industrial workers with a monthly earning up to Rs.21,000 fall under the ambit of the ESIC, and every month a portion of their salary is deducted and deposited with the ESIC to avail medical benefits. These workers are called IPs. Currently, an IP pays 0.75% of his or her basic salary and 3.25% is given by the employer to the ESIC kitty.

ESIC has around 26 under-construction hospitals and 16 at the conceptual stage. However, existing medical facilities with states will continue to be with them.

The corporation has also decided to extend the timeline for availing unemployment benefit under the Atal Bimit Vyakti Kalyan Yojana till June 30, 2021 instead of 31 Dec, 2020.

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