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dahiyars
July 23rd, 2006, 06:48 AM
Dear All
Apollo Hospital Group prides itself as being the “the fourth largest private healthcare group in the world and the largest in Asia. With over 6400 beds in 32 hospitals, a string of nursing and hospital management colleges, and dual lifelines of pharmacies and diagnostic clinics” it is indeed a “powerhouse” of healthcare. The Indraprastha Apollo Hospital, New Delhi is the 4th largest corporate owned hospital in the world constructed at a cost of $ 44 million which has 692 beds and 14 operation theatres and handles about 200,000 patients annually, about 60,000 being indoor patients and of the latter about 10,000 or 17% are from other countries. This hospital was built in 1996 on 15 acres prime land worth an estimated $2.5 million given by the Delhi government free of cost (at a token lease rent of Re 1 per annum). Apart from this the Delhi government invested $3.4 million in construction of the hospital and contributed $5.22 million as equity capital. Besides this tax and duty waivers on import of equipment etc. were also given. In lieu of this public subsidy the agreement was that treatment for one-third of the beds would be made available free of cost to poor patients.

The fact of the matter is that the free treatment part was undermined by the Hospital, both a legal and ethical violation, and the Delhi government was negligent in demanding accountability to honour the terms of the agreement. When this fact came to public notice a public interest litigation was filed in the Delhi High Court and this led to the appointment of the Justice Qureshi Committee which exposed the huge scam of misuse of public subsidies by private hospitals in Delhi, including the Apollo Hospital case (also discussed below in the box on PPPs). The Report further indicated that only 2% of indoor cases in 1999-2000 in Apollo Hospital were treated free and most of these were relatives of staff, bureaucrats and politicians. In contrast the average for all the 27 hospitals was 9.7% free indoor patients.

There are at least 500 such hospitals across the country and the public subsidy at stake would be in the range of at least two billion dollars! And it is these very hospitals which are at the core of the booming medical tourism.
Please comment

R.S.Dahiya

dahiyarules
July 23rd, 2006, 09:19 AM
As an Austrian Economist this against proves my point that government subsidies and "free" public services never work because goods and services that have an opportunity cost of more than "zero." can never be traded at or below "zero."

That is why you will notice that no public service that sounds "free," is just too good to be free. There is no such thing as free.

We must appreciate Apollo groups effort for bringing world class health care to India. I have been to thier Delhi Hospital and was amazed by the quality of their infrastructure and services.

Point 1: The land subsidy provided by the Delhi Government must be revoked and Apollo must pay the cost of the land along with interest.

Point 2: All patients must pay the cost of their treatment. If they are not fine with it, they can go elsewhere.

I do not want "government bureaucracy" to spoil some of the very few good things we have in our country.

basant
July 26th, 2006, 02:31 PM
Poor people life has no value for Apollo group. For them Value stands only for dollars and rupees.

dahiyarules
July 26th, 2006, 03:55 PM
Poor people life has no value for Apollo group. For them Value stands only for dollars and rupees.

Basant Saab!

Why do you think any business has an obligation to donate goods and services for free.

I want to ask you a simple question. Would you ever give 50 rupees to a beggar? If yes, how about hundred? Whats the point where you wont give away anything to the "poor?"

Businesses do a lot of charity. But if they do too much charity, they will cease to exist.

And that wont be really good for anyone in the society including the poor people who benefit from other services provided by the government that are financed by the tax money given by these so called "cash rich businesses."

rohittewatia
July 26th, 2006, 04:37 PM
If apollo didn't wanted to bring down it's profit, why did it signed the agreement on the first hand?

10 Million dollars is not a small thing....

We'll see what happens...

rohittewatia
July 26th, 2006, 04:40 PM
Why do you think any business has an obligation to donate goods and services for free."

Hope the next question won't be why do we need to pay taxes to the government?