Private Companies Now Allowed to Start Medical Colleges

Soon private profit making companies will be seen setting up their medical colleges with the Government approving of the same. This will be a great opportunity for corporate houses, leading private hospitals and pharmaceutical companies to set up their own private medical colleges and get into the education field.

The Union Health Ministry has directed Medical Council of India (MCI) to allow private companies to launch medical colleges in India.

In the present scenario, to open a medical college, private companies can establish medical colleges but without “resorting to commercialisation”. However, this clause has also been removed by the health ministry as according to them, this clause was acting as a constraint for private companies to set up medical colleges.

There is a possibility that this clause will be further altered to “Companies registered under the Companies Act” with respect to Central Government’s letter to MCI.

If this change is brought in the eligibility criteria of setting up a medical college, soon any society or trust which has set-up a medical college will be able to convert itself into a company.

In order to increase the number of trained and medical professionals in the country, the MCI has allowed private companies to set up their respective medical college in the country.

Prior to this change, only trusts and registered societies were allowed to run medical colleges besides state and central govt.