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Govt floats corporation to manage healthcare

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Express News Service

Posted: Feb 14, 2009 at 0349 hrs IST

Kolkata For better management of state’s healthcare system, the government has established the West Bengal Medical Services Corporation Limited. The corporation, registered under the Companies Act 1956, will sell 10 lakh equity shares of Rs 100 each to raise a capital of Rs 10 crore.

The corporation will procure and supply drugs and equipment to hospitals, supply them chemicals and reagents, besides providing and maintaining the health facilities.

State Health Minister Surya Kanta Mishra allayed the fear about the privatisation of the healthcare and said the corporation will remain a government organisation. “It is a 100 per cent government company. It is important to issue shares for the formation of the corporation but entire equity of the corporation will be held by the government,” he stated.

“Our main aim is to procure low-cost quality drugs and other equipment needed in hospitals. Moreover, the corporation will also have an engineering wing to look after the maintenance of the hospitals and ensure services like cleanliness, electricity and water,” said Mishra.

Staff of various government hospitals, however, said the corporation will lead to privatisation of the healthcare. In a protest meet on Friday they said privatisation of healthcare system will make it difficult for the poor to gain access to basic medical facilities.

“Privatisation does not necessarily lead to an improvement in the system. Although the government has said it will have full control over the corporation but if the shares are issued in the market and a private company buys majority of them, how can the government have any control,” said Ashok Samanta, a Kolkata-based doctor.

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