Govt plans to outsource major federal hospitals to boost revenue

The federal government is considering outsourcing key government-run hospitals, including the Pakistan Institute of Medical Sciences (PIMS), Polyclinic, CDA Hospital in Islamabad, Sheikh Zayed Hospital in Lahore, and Jinnah Postgraduate Medical Complex in Karachi, as well as numerous dispensaries. 

The plan involves awarding extendable contracts or adopting a public-private partnership (PPP) model to reduce these facilities’ financial burden on the federal budget.

According to a news report, one aspect of the proposed reforms aims to convert federal healthcare facilities into semi-commercial hubs for medical tourism, leveraging partnerships to generate funds that can support government health initiatives. The outsourcing of CDA Hospital is already underway. 

Federal government hospitals currently receive approximately Rs10 billion annually, and a significant portion of this funding could instead be used to expand services for low-income patients. PIMS alone requires around Rs3 billion each year for maintenance, yet its ample space could accommodate high-rise developments to attract resources and support medical tourism with assistance from institutions like the Aga Khan Foundation.

Officials estimate that with proper quality assurance and strategic implementation, healthcare facilities in Islamabad alone could potentially generate Rs80-100 billion within five years.