Every person has the right to access quality medical treatment and healthcare facilities. India, a developing country, makes every effort to provide both its rural and urban residents with quality healthcare and medical services. Every state, region, and local town must have a new hospital built for this reason in order to stay up with the evolving healthcare system.

Every Indian citizen has a basic need for healthcare, which they are also entitled to. The platform for providing healthcare delivery is made up of hospitals, nursing homes, clinics, medical camps, etc., with help from doctors, nurses, and other medical personnel. Unfortunately, while having a sizable and expanding population, India has few hospitals. 879 patients share one hospital bed in India. This is significantly less than the global average of 30 hospitals per 10,000 people.

The WHO estimates that India needs 80,000 extra hospital beds per year to accommodate its expanding population. This demonstrates the necessity of building new hospitals more quickly.

However, setting up a fully functional hospital isn't simple. Before a hospital's structural setup, the owner or executive must take care of a number of factors.

Factors to be considered before setting up hospital in India:

  1. Medical Unit Location

It is important to choose this carefully because it will be challenging to pool patients if there are already hospitals in the area. The hospital must also be built in a location with decent transit options or adjacent to a train station. Given the price of real estate, a large financial commitment is necessary.

  1. Facility & Specialties

One must be certain of the planned setup and the necessary infrastructure. Different hospital facilities are needed for a paediatric, orthopaedic, gynecologic, oncologic, pathology, imaging, Nursing home, intensive care unit, etc facility

Required Permits:

  1. Land and Construction

A farm's designated land cannot be used. Several clearances from the local authorities must be obtained before construction on the hospital wing can begin. A number of paperwork, including a land deed and an architect's plan, must be approved. After all processes are completed, an occupation certificate is acquired. Before opening any hospital, the numerous approvals and permissions required from the local authority and the government should be secured.

  1. Water and Electricity:

To obtain water and electric metres, as required by the hospital, authorisation must be obtained from the local governing authority. Calculate the amount of water needed, which for any setup is approximately 100 litres per day.

  1. Sewage approval

The installation of a well-planned sewage and drainage system, which is done after obtaining approval from the municipal board, is necessary for proper waste disposal.

  1. Fire NOC

To demonstrate that the hospital won't result in property damage or human casualties, a fire licence is required, which must be obtained from the local municipal council. To serve patients with healthcare, obtaining a Fire licence is essential.

  1. Bio-Medical Waste (BMW) authorization

Installing incinerators necessary to dispose of medical waste and body parts requires the consent of the municipal corporation and pollution board, which is a very important issue.

  1. Water and Pollution act

For setting up hospital, we have to take NOC from Pollution department of the state or central as per the requirement

  1. Clinical Establishment License

For setting up, hospital we take registration under clinical establishment act, as per the state regulation.

  1. Other important license which may be required under following act:
  1. Drug and cosmetic act
  2. Narcotics and Psycotropic substances Act, 1985
  3. Boiler Act
  4. MTP Act
  5. Blood Bank license
  6. Transportation of Human Organs Act 1994
  7. Dentist Regulations, 1976
  8. ESI Act,1986
  9. Environmental protection act 1986
  10. Fatal Accidents Act 1855
  11. Indian Nursing Council Act 1947
  12. Pharmacy Act 1948


Costing for setting up of a Hospital in India:

Two factors affect how much it costs to build a hospital in India:

a. The medical facility's.

b. The level of medical care the unit plans to provide.

50 to 60 percent of the total capital expenditure is required by the land and building combined. The total set-up required to get the healthcare facility fully operational after the financing for the land purchase or construction project is arranged amounts to around one-half of the money previously invested in buying or building the facility's premises.

Although they don't make up the majority of the market for ambulatory services, medical equipment, consumables The cost of establishing a small hospital in India is ongoing.

Implementing cost-effective procurement is essential for the organization's long-term success and is best done as part of the original budgeting for the construction of a hospital.

To establish a full-fledged hospital in India, one should be prepared to spend at least 70 lakhs. This environment consists of the installation of several facilities and bedding, as well as land and construction, legal and medical licences.