In a major step to improve healthcare responsiveness, the Gujarat government has decided to grant financial autonomy to state-run medical colleges and hospitals. The move will allow these institutions to independently manage expenses related to medical equipment procurement and operational needs, particularly during emergencies like the recent Air India plane crash in Ahmedabad.
The decision was made during a high-level meeting between the state government and the health department on Tuesday.
Faster Procurement Powers for Hospitals
Under the new policy, financial powers will be delegated to the institutional level, enabling faster decision-making and reducing bureaucratic delays. Heads of Departments (HODs) will also receive greater authority to streamline operations and respond quickly to medical crises.
Currently, deans of government medical colleges can approve purchases up to ₹5 lakh. The revised policy is expected to raise this limit, providing more flexibility for timely procurement and maintenance of critical medical infrastructure.
Support for PHCs and CHCs
The government will also extend financial support to Primary Health Centres (PHCs) and Community Health Centres (CHCs). This will cover medicine procurement, equipment purchases, ambulance upkeep, and essential infrastructure repairs, ensuring improved services at the grassroots level.
By decentralising financial authority, the state aims to enhance emergency preparedness, improve service delivery, and increase efficiency across its public healthcare system.
Benefits:
- Faster emergency response
- Reduced dependency on central approvals
- Increased flexibility for hospital administrators
- Timely access to essential medical equipment
Challenges:
- Risk of inconsistent procurement standards
- Possibility of misuse or favouritism without strict oversight
- Need for strong audit and monitoring systems
Capacity gaps at smaller institutions
While the policy marks a progressive shift in healthcare governance, its success will hinge on robust implementation, financial accountability, and institutional preparedness.