How to Set Up a Hospital in India: A Beginner's Guide in 2020

Updated: Sep 2, 2020

Good medical and healthcare facilities are the right of every individual. India as a developing nation tries its best to furnish decent healthcare and medical facilities to its rural and urban population.

For this purpose, a hospital is a must set up in each state, district, or the local village. However, installing a complete and equipped hospital isn’t a cakewalk. A hospital owner or the executive needs to take care of multiple parameters prior to its structural setup.

This article substantiates the different requirements of a hospital and how to accomplish them step-by-step. Or else put it, the article furnishes a detailed feasibility report on the relevant necessities paramount to installing a hospital or any healthcare center.

Let’s dive in and unravel this beginner's guide to setting up a hospital in India.

Choosing an Appropriate Location

First and foremost, one needs to select the most apt location to open a hospital. This is because if there are multiple hospitals in a single locality, it is likely that the new hospital may stand a competitive market.

Moreover, it is convenient and highly desirable to open hospitals in localities where there is a dearth of medical services. In this way, a hospital will run better and benefit the maximum number of people.

Hospital Registration

Before anything else, registration of a hospital is a must for engendering its valid and authentic medical credentials. Following are some of the essential facets to remember while registering and legalizing a hospital:

  • Recognizing the nature of the hospital: the government or private

  • Hospital Registration Certificate, Form C

  • Approval by the competent authorities

  • Registration under the Societies Registration Act, 2001

  • Registration under the Companies Act, 2013

  • Registration under the Clinical Establishment Act, 2017

  • Acquiring a unique Director Index Number (DIN NO) for each director of the hospital

  • FSSAI license for operating a kitchen

  • Pharmacy registration for medical shops within the hospital premises

  • Certificate of registration of hospital with municipal corporations

  • IMC/SMC registration certificate under the Indian Medical Council Act, 2002

  • Trademark registration

  • Ambulance vehicle registration

  • Licensing of arms under the Arms Act, 1959.

  • Registration for Transplantation of Human Organ Act, 1994

  • Excise permit to store spirit exceeding the medical stipulation

Procure Essential Permits

Permit procurement is one of the most important and decisive factors in installing and running any hospital in India. Individuals or companies planning to invest in this cause must ensure to acquire all legal permits before its actual set up.

Some of the mandatory permits needed for hospital set up are:

  • Land and Construction

  • Sewage

  • Water and Electricity

  • Biomedical Waste

  • Fire and Health permits

Financial Investment

Believe it or not, financial planning stands pertinent to setting up any hospital. For this, suitable investors and business partners must collaborate and look forward to funding the different aspects of the hospital.

This may even include direct investment from one’s own pocket or approaching banks and investment firms for suitable loans.

Plan the Infrastructure

Next in the process, one requires expert civil engineers and architects to construct the actual hospital building. This step entails the presence of both physical and human resources. The physical infrastructure includes

  • The hospital building and the concrete material used for its dynamic construction

  • Installation of sewage lines, fire extinguishing system, lifts, emergency alarms, well-furnished ICU, pathological labs, OPDs, general and emergency wards.

  • Purchasing suitable medical machines and surgical tools and instruments

  • Setting up of computer and other hardware systems including security devices and CCTV cameras

In addition to the above, proper human resource planning for a successful hospital comprises:

  • Employment of educated and qualified doctors, nurses, and other working staff for the smooth running of a hospital.

  • Other significant labor which includes ward boys, watchmen, cleaners, and maintenance staff (engineers, legal, insurance and accounts officers, fire extinguishers, air-conditioning and gas pipelines operators, etc. )

Facilities on Offer

During the employment of the appropriate medical staff, the hospital owners must be aware of the services which their medical investment is willing to offer. And in turn, suitable staff should be appointed based on those facilities.

  • Gynecological services and birth centers

  • Dedicated blood banks in case of facilities

  • Ambulatory surgical centers

  • Cardiac and neurological facilities

  • Intensive care unit

  • Super-specialty services including endocrinology, nephrology, pediatrics, orthopedic, urology, physiotherapy, and occupational therapies, etc.

  • Labs for conducting CT scans, x-ray, urine, blood, and other peremptory tests

  • Psychological and mental healthcare centers

  • Addition and rehabilitation centers

  • Nursing homes

  • Regular healthcare, dental care, and organ betterment services

  • Telehealth services

Is Hospital Business Profitable in India?

The hospital industry in India accounts for 4 trillion and is expected to reach 8 trillion in 2022. In this sense, investment in hospitals could be highly profitable and a lucrative venture for the government, businessmen, and other stakeholders.

Moreover, the rising demands for medical emergencies have hiked the necessity of hospital installations and suitable beddings in every locality. This eventually mandates the suitable construction of medical and healthcare centers across the country.

Cost of Setting a Hospital in India

One should be ready to shell out around 70 lakhs or higher to set up a full-fledged hospital in India. This setting is inclusive of the legal and medical permits, land and construction, installation of multiple facilities and bedding, etc.

More to the above, the hospital set up also has recurring costs such as the salaries of the doctors and other hospital employees, the cost of purchasing medical equipment and medicines, etc.

Thus, anyone looking forward to setting up a hospital should go through the aforementioned requirements and proceed with its accomplishment. And don’t forget to browse ZEPNURhealth’s website for the easy and comfortable procurement of medical and healthcare devices in India.

Read these articles for more hospital set-up related information:

We wish you good luck with your new hospital!

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