IFC will assist the state government in selecting a private partner through a competitive and transparent process. This partner will equip, staff, and expand the government-owned, 40-bed Sadar Hospital into a 500-bed facility to provide secondary and tertiary care. IFC will similarly assist the state’s district hospitals and medical colleges to identify private operators who can provide advanced radiological imaging and pathological testing services. Both these projects are expected to raise about $75 million in private sector investments.
“With IFC’s experience in privatization and restructuring, the state aims to leverage private sector funds and capability to improve public healthcare delivery,” said Hemlal Murmu, Minister of Health, Medical Education and Family Welfare for Jharkhand.
The projects will include training of government staff to manage these programs and conduct similar transactions in future. IFC will also explore the viability of setting up an associated medical college with private participation.
Thomas Davenport, IFC’s Director for South Asia, said, “These projects will help address the shortage of quality healthcare services and medical professionals in the state, and expand access to medical care among patients.”
IFC has successfully implemented a similar project in four government hospitals of Andhra Pradesh by assisting the state in engaging a private sector company that installs and manages advanced diagnostics in public hospitals, and that trains students in attached medical colleges.
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. For more information, visit www.ifc.org.