Knowledge

The HSA team of Hemant Sahai (managing partner) and of Pranav Singh (partner) assisted by Sunei Kapur (senior associate), advised IFC and Government of Jharkhand on selecting private partners through a competitive tender process for development and operation of pathology centres in all twenty four districts of the State. Pursuant to a competitive tender process, Medall Healthcare Private Limited and SRL Limited have been selected as the private partners for development and operation of pathology centres in their respective cluster, each cluster comprising of twelve districts of the state.

HSA, along with Ernst & Young (who acted as the technical consultant), assisted IFC and Government of Jharkhand in finalising the PPP structure and bid parameters, drafting the concession agreement and bid documents, and in conducting the bid process. This transaction further demonstrates HSA’s capability in the PPP and healthcare sector.

The story appeared in the Daily Pioneer on 9th May 2015:

State Government signed an MoU with Medall Healthcare on Friday for setting up pathological laboratories in 12 districts of the State. A similar, MoU was signed with SRL Diagnostics on April 30 for remaining 12 districts. “We have signed a MoU of 10 years with Chennai’s reputed Medall Company for conducting the pathological tests in RIMS, MGM and 12 districts including Ranchi, Lohardaga, Gumla, Khunti, Simdega, Palamau, Garhwa, Latehar, Chatra, West Singhbhum, East Singhbhum and Saraikela-Kharsawan on Public-Private Partnership (PPP) mode,” Health Minister Ramchandra Chandravanshi told media persons.

“As per the MoU, the company will establish Advanced Pathology Testing Machines and deploy specialists and technicians in its centres.   The charges for conducting the test will not exceed than the CGHS rate fixed by central government. State government will bear the expenses of the same for the Below Poverty Line people,” added Chandravanshi. The Company working in various private hospitals of southern India and Maharashtra is aiming to begin its function in Jharkhand within the next 90 days.

Meanwhile, SRL has set a target of 60 days to start its operations, claimed sources. The Health Minister said Medall in the first year will be paying an annual fund of Rs1.81 crores to the State Government which will increase by 6.5 per cent every year. Government’s single role in the project is to provide an appropriate infrastructure equipped with water and electricity to the company.

Chief Executive Officer cum Managing Director Raju Venkatraman of Medall informed that prior to taking the decision on the MoU, Health Department Principal Secretary K Vidyasagar had visited their centre in Visakhapatnam to go through the available facilities offered by them. “We are passionate to serve the denizens of Jharkhand. Our mission is to serve poorest of the poor,” mentioned Venkatraman.

The Chennai based party was selected by International Finance Company on behalf of the state government. Chandravanshi expressed gratitude towards Izabal, the Head of PPP of IFC, South Asia to extend their support in all the schemes of the health department running under Public-Private-Partnership mode. Also, he directed Vidyasagar and Health Deputy Secretary Ram Kumar Sinha to keep an eye over the implementation of the scheme.