The Telugu Desam Party-led National Democratic Alliance (NDA) government in Andhra Pradesh Wednesday launched a public-private partnership (PPP) model to build 10 new medical colleges and to improve healthcare access and quality statewide.
“The new PPP initiative unlocks stalled investments, adds 110 UG medical seats annually for Andhra Pradesh students, and guarantees free OPD and majority IPD services while integrating advanced technologies. PPP model will result in savings of Rs 3,700 crores in development costs and Rs 500 crores annually in operating costs,” Chief Minister N Naidu Music said, adding that the initiative addresses long-pending gaps in medical education and public health infrastructure across the state.
Officials said that although 17 new medical colleges were sanctioned in the previous years with an estimated investment of Rs 8,480 crore only Rs 1,550.39 crore (18.2%) was spent over four years up to June 2024, leaving 11 colleges non-operational and the balance of Rs 6,152 crore unspent, risking a 15-year completion timeline at the previous pace. The current government released Rs 786.82 crore after June 2024 to revive stalled works and has now adopted PPP to ensure time-bound completion and improved service delivery. The YSRCP is opposing the PPP model and has accused the Naidu government of privatising medical education.
The key highlights of the new PPP model:
- 10 medical colleges to be developed and operated under PPP to provide quick, quality, and statewide access, complementing ongoing government efforts to operationalize sanctioned institutions.
- Estimated savings of ₹3,700 crore in development costs and approximately ₹500 crore per year in operations and maintenance through private-sector efficiency and shared investment under the PPP model.
- Additional 110 UG seats annually for AP students: the PPP seat-sharing pattern provides 75 Convenor Quota (General) seats per 150-seat college, yielding 11 extra state-quota seats per college versus prior structures (total 110 across 10 PPP colleges).
- Patient-first commitment: free OPD services, free diagnostics in OPD, and free IPD for 70% beds under PMJAY, NTR Vaidya Seva Trust, and CGHS rates; paid services apply to 30% IPD beds with market-rate diagnostics for paid patients.
- Technology and quality upgrade: integration of AI-driven diagnostics, telemedicine, and digital health records, with collaboration opportunities for reputed medical institutions to elevate academic and clinical standards.
Andhra Pradesh has expanded to 36 medical colleges with 4,046 UG seats by 2024–25, up from six colleges and 650 seats in 1995-96, driven by both government and private sector participation. Despite this growth, delayed capital execution left 11 sanctioned colleges inoperative as of June 2024, necessitating course correction through targeted funding and a PPP-led delivery model to meet immediate demand and quality benchmarks.
