Gujarat medical colleges, hospitals to get financial autonomy for equipment, repairs

In a move aimed at improving healthcare responsiveness, the Gujarat government has decided to grant financial autonomy to government-run medical colleges and hospitals. The decision will allow these institutions to independently procure medical equipment and manage operational expenses, especially during emergencies such as the recent fatal Air India plane crash in Ahmedabad.

The announcement followed a high-level meeting between the state government and the health department on Tuesday.

Hospitals to gain faster procurement powers

According to the new directive, financial powers will be delegated to the institutional level. This is expected to speed up the procurement and maintenance of critical medical equipment and services, reducing bureaucratic delays. Heads of Departments (HODs) will also be given increased responsibilities under the new framework.

Currently, deans of government medical colleges can approve purchases up to ₹5 lakh. The new policy is expected to raise this limit to enable more flexible and timely decision-making during medical crises.

PHCs and CHCs to also receive support

The government has also decided to extend financial support to Primary Health Centres (PHCs) and Community Health Centres (CHCs). The assistance will cover medicine procurement, medical equipment, ambulance maintenance, electrical and infrastructure repairs, and other essential services.

By empowering healthcare administrators at multiple levels, the state hopes to improve operational efficiency, strengthen emergency preparedness, and enhance service delivery across its public health network.

While the policy marks a significant shift towards decentralised healthcare governance, its success will depend on implementation rigour, institutional capacity, and financial accountability -- especially during high-pressure situations like the Ahmedabad plane crash.

Pros:

Faster response during emergencies

Reduced dependence on centralised approval systems

Greater operational flexibility for hospital heads

Potential improvement in patient outcomes through timely equipment access

Cons:

Risk of inconsistent procurement standards

Increased potential for kickbacks, favouritism, or use of substandard contractors

Need for strong audit mechanisms to prevent misuse of public funds

Possible gaps in capacity at smaller institutions managing new responsibilities