NMC Clears For-Profit Companies to Set Up Medical Colleges Under PPP Model
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| K.V.S. GIRI via The Hindu |
In a major policy shift aimed at expanding medical education infrastructure, National Medical Commission (NMC) Chairman Abhijat Chandrakant Sheth on Wednesday announced that the regulation restricting medical colleges to non-profit entities has been shelved. The revised framework now allows both non-profit and for-profit companies to establish and run medical colleges under the Public-Private Partnership (PPP) model.
Mr. Sheth made the announcement while addressing the media at Dr. NTR University of Health Sciences (NTRUHS) in Vijayawada. The change, he said, was approved during a recent NMC board meeting and is intended to improve capacity, efficiency, and access in medical education.
Policy Shift Explained
“Earlier, only non-profit Section 8 companies were allowed to set up medical colleges. That regulation has now been removed,” Mr. Sheth said, adding that the move would open the door for greater participation from private players while retaining public oversight through the PPP framework.
He noted that the NMC believes collaboration between public and private entities would ensure better utilisation of resources, improve infrastructure, and help meet the growing demand for medical professionals across the country.
Mr. Sheth clarified that implementation of the PPP model remains the prerogative of State governments, and pointed out that such arrangements are already functioning successfully in Gujarat.
Impact on Healthcare Access
Addressing concerns over affordability, the NMC Chairman said hospitals operating under the PPP mechanism would remain under State government supervision. As a result, patients would continue to receive free or subsidised treatment, ensuring that commercial participation does not compromise public healthcare delivery.
The move is expected to significantly increase the number of medical colleges and seats, especially in underserved regions, while easing the financial burden on State governments.
Focus on Quality and Research
Mr. Sheth also outlined measures to enhance the quality of medical education, announcing that clinical research will be made mandatory, with a strong push towards artificial intelligence, digital healthcare, and futuristic technologies. New PhD specialty and sub-specialty courses will also be introduced.
He added that the NMC is working to simplify the accreditation process for medical colleges, reduce delays in counselling, and increase awareness about disease prevention and student mental well-being.
State-Level Initiatives
Earlier in the day, Mr. Sheth met Andhra Pradesh Chief Minister N. Chandrababu Naidu to discuss medical education reforms. Later, NTRUHS Vice-Chancellor P. Chandrasekhar announced steps to increase postgraduate seats to match MBBS intake and introduced a new Family Medicine programme with around 500 seats to address doctor shortages in taluk-level hospitals.
He also announced that each government medical college would receive ₹50 lakh annually for research and ₹25 lakh for sports development, with University Research Day scheduled for January 12.
Our Thoughts
The NMC’s decision to allow for-profit participation in medical education under a regulated PPP model marks a pragmatic shift toward expansion and sustainability. If implemented transparently with strong public oversight, the move could address seat shortages, strengthen research, and improve healthcare access without diluting affordability or academic standards.
