Health Ministry reveals IGMH agreement
| DATE: 2010-03-11 | PRINT |



Ministry of Health and Family has finally revealed the management agreement between the government and Apollo Hospitals Enterprises of India to manage and develop Indira Gandhi Memorial Hospital (IGMH).

Earlier the ministry refused to release the document saying it would violate the government’s confidentiality agreement with Apollo.

But the ministry published the agreement on its website today days after Home Affairs Ministry urged to reveal the agreement after omitting the confidential clauses.

According to the Management and Development Agreement, a ‘Transition Agreement’ has to be made before the expiry of the agreement. It also requires both parties to establish an Operations Management Agreement for 12 years, after the Transition Agreement.

A statement issued by Health Ministry on January 23, following the signing of agreement, read that the management agreement was made for a 15-year period.

The agreement states that any element of the agreement can only be revealed to a third party on consent of the two parties, unless under a court order or law. It requires the government to hand over the management of dispensaries in IGMH and in health centres operating under IGMH, to Apollo.

While the agreement makes it mandatory for Apollo to start developing services such as cardiology, orthopaedics, and neurology within the period of the Management Agreement, the government has to pay six percent of the estimated US$ 750,000 for the project, to Apollo. In addition, the government should pay 20 percent of Transition Management fees, within 15 days following the signing of the agreement.

Despite Health Ministry’s announcement that the government and Apollo Group would invest US$ 20 million to improve the services provided the Hospital, the 11-page agreement does not state it.

The agreement states that Apollo would have full authority to manage the Hospital, while Ministry of Health and Family would spend for the management. It also read that Apollo should manage IGMH, under a separate agreement, which would achieve the objectives of the Management Agreement.

While the Ministry revealed the agreement, which would last for 180 days commencing from January 23, ‘b’ clause was omitted from ‘Fees and other Terms’ section of the agreement.