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How to Open General-Purpose Hospitals in India


Overview: General-Purpose Hospitals

Every citizen of our country has a basic need for and right to healthcare. Hospitals, nursing homes, clinics, medical camps, and other medical facilities serve as the foundation for this healthcare delivery, which is supported by doctors, nurses, and other medical personnel. Unfortunately, India has a large and rapidly rising population but few hospitals. There is only one hospital bed in India, which can accommodate 879 people. This is significantly lower than the global average of 30 hospitals per 10,000 people. According to the World Health Organization, India requires 80,000 additional hospital beds each year to meet the demands of its rapidly rising population.

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This emphasizes the urgent need for more hospitals to be constructed at a faster rate. Every person has the right to good medical and healthcare facilities.  As a developing country, India makes every effort to provide adequate healthcare and medical services to its rural and urban inhabitants. To stay up with the changing healthcare system, every state, district, or local community must establish a new hospital. Installing a fully functional and equipped hospital, on the other hand, is no easy task. Before a hospital's structural setup, the owner or executive must consider a number of factors. This article explains the various needs of a hospital and how to meet them one by one. Or, to put it another way, the article provides a full feasibility study on the critical requirements for establishing a hospital or other healthcare facility.

Read Our Blog: How to Start a Hospital in India

Choosing an Appropriate Location

This must be carefully chosen because pooling patients will be difficult if there are already hospitals in the region. In addition, the hospital must be near a train station or in an area with strong public transportation. The cost of real estate involves a substantial financial outlay. The optimum size for a hospital should be picked first and foremost. This is because, if a given location has multiple hospitals, the new hospital will almost probably encounter competition. Furthermore, it is both practicable and desirable to build hospitals in locations where medical services are sparse. This will make a hospital run more smoothly and benefit the maximum number of people.

Hospital Registration and License Required

Before anything else, registration of a hospital is a must for engendering its valid and authentic medical credentials. Following are some of the essential facets to remember while registering and legalizing a hospital:

  • Land and Construction
  • Electricity and Water
  • Sewage
  • Biomedical Waste
  • Fire and Health Licence

Land and Construction

Agriculture-allotted land cannot be exploited. Several clearances from local authorities are required before construction on the hospital wing can begin. A variety of paperwork, such as a land deed and an architect's plan, must be approved. An occupation certificate is obtained after all formalities have been completed.

Electricity and Water

Permission from the local governing body is required to obtain electric meters and water supplies in accordance with the hospital's needs. Water consumption must be determined, which is approximately 100 liters per day for any arrangement.


Waste disposal requires a well-designed sewage and drainage system, which is installed after obtaining authorization from the municipal board.

Biomedical Waste

This is a critical component, and the Municipal Corporation must approve the installation of incinerators to dispose of medical waste and body parts.

Fire and Health Licence

This license is to prove that the hospital will not cause any damage or loss of life, a fire license must be obtained from the local municipal council. Obtaining a health license is necessary in order to provide health care to patients.

Financial Investment

Believe it or not, financial planning is crucial to the success of a new hospital. In order to do this, appropriate investors and business partners must collaborate and look forward to funding the various components of the hospital.

This could mean investing directly from one's own wallet or approaching banks and investment firms for suitable financing.

Plan the Infrastructure

Following that, professional civil engineers and architects are needed to create a real hospital building. The presence of both physical and human resources is required for this level. The physical infrastructure consists of the following:

  • The hospital structure, as well as the concrete employed in its dynamic construction.
  • Sewage lines, fire extinguishing systems, lifts, emergency alarms, well-equipped ICU, pathological labs, OPDs, and general and emergency wards were all installed.
  • Purchasing appropriate medical equipment, surgical tools, and equipment
  • Setup of computer and other hardware equipment, such as security and surveillance cameras
  • In addition to the foregoing, a good hospital's human resource planning should include:
  • For the smooth operation of a hospital, educated and qualified doctors, nurses, and other working staff are required.
  • Ward boys, watchmen, cleaners, and maintenance personnel are among the other important workers (engineers, legal, insurance and accounts officers, fire extinguishers, air-conditioning and gas pipeline operators, etc.)

Facilities on Offer

The hospital owners must be aware of the services that their medical investment is willing to deliver while hiring suitable medical staff. As a result, appropriate personnel should be hired depending on those resources.

  • Obstetrical and gynecological care, as well as birthing centers
  • In the event of a shortage of blood, there are dedicated blood banks.
  • Surgical ambulatory centers
  • Cardiovascular and neurological services
  • An Intensive Care Unit (ICU) is a type of hospital that
  • Super-specialty services such as endocrinology, nephrology, pediatrics orthopaedics, urology, physiotherapy, and occupational therapies, among others; 
  • Laboratories for CT scans, x-rays, urine, blood, and other peremptory testing;
  • Addiction treatment and recovery facilities
  • Nursing homes 
  • Health-care, dental-care, and organ-improvement treatments on a regular basis
  • Telemedicine services

Is Hospital Business Profitable in India?

In India, the healthcare business is worth 4 trillion dollars and is predicted to grow to 8 trillion dollars by 2022. In this sense, government, business, and other stakeholders may find that investing in hospitals is a highly profitable and rewarding undertaking. Furthermore, the rising need for medical emergencies has increased the need for hospital facilities and appropriate bedding in every community. This will eventually necessitate the proper establishment of medical and healthcare facilities throughout the country. India has a low hospital bed and doctor penetration rate, a huge population with a high frequency of communicable diseases, and the added burden of lifestyle diseases. The growing middle class, together with improvements in pricing and service quality, as well as India's growing popularity as a medical tourism destination, has created a demand for higher standards of treatment. Costs are also increasing for service providers. In this day and age, updating medical technology with the latest and most advanced, paying high-figure salaries to specialists, and investing in branding have all become a hospital survival mantra, all of which come with a hefty price tag. As healthcare prices become a political issue around the world, hospital groups are losing control of pricing. It's ironic, then, that the Indian hospital business, which was valued at Rs. 4 trillion (US$ 61.79 billion) in FY17 and is predicted to grow to Rs. 8.6 trillion (US$ 132.84 billion) by FY22, may be derailed and hampered by the aforementioned issues.

Government price controls in the pharmaceutical, medical device, and, more recently, hospital sectors are putting them under even greater strain, threatening their financial viability. Aside from the yearly amendment of the Drugs and Cosmetics Act, one of the most powerful initiatives that rattled the hospital industry was the price reduction of stents and knee implants by over 70% in 2017. Oncology medications have also been subjected to price controls. Mr. Narendra Karkera, Director, Hosmac India Pvt. Ltd., believes that understanding the history of Indian healthcare is critical to comprehending rising costs and the government's recent price-capping actions. "Healthcare was once solely given by government and trust hospitals for the sake of charity." With the advent of corporations such as Apollo, healthcare began to pay attention to profit margins, and hospitals began to be considered businesses. Because the corporate hospitals were publicly traded, they obligated it to their stockholders to maximize profits. The healthcare market was fragmented prior to the creation of corporate chains like Apollo and Fortis, with local doctors establishing their own facilities. India's private healthcare sector has become considerably more organized over time, allowing these participants to have a greater influence in determining the game's rules. This provided private players with a stronger bargaining position with the pharmaceutical and medical device industries. ” The focus shifted to raising finance to expand in metro areas and tier I and Tier II hospitals, where healthcare services are in short supply and multi-specialty hospitals are in high demand. Large capital investments in creating tech-enabled hospitals resulted in greater treatment costs.

This portion of the site is for informational purposes only. The content is not legal advice. The statements and opinions are the expression of author, not corpseed, and have not been evaluated by corpseed for accuracy, completeness, or changes in the law.


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I have worked for many internet blog pages and news portals. currently, I am working as a content writer for Corpseed Pvt. Ltd. I like to write blogs and articles in the field of different services.

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