Centre Urges Andhra Pradesh Government to Adopt PPP Model for Healthcare Expansion

The Centre has urged the Andhra Pradesh government to adopt a public-private partnership (PPP) model to modernise and expand the state’s healthcare infrastructure, particularly in underserved rural and semi-urban areas.

In a letter to State Health Minister Satya Kumar Yadav, the Union Ministry of Health and Family Welfare conveyed that working more with the private sector will be the quickest and most effective method to address the current gaps in healthcare delivery. The ministry pointed out that PPP initiatives can greatly enhance the availability, quality, and efficiency of medical services throughout the state.

"The Centre has advised Andhra Pradesh to widely adopt the PPP model for fast, tracking the expansion of the healthcare sector and to strengthen the service delivery mechanisms, " a government statement read on Wednesday.

As per the ministry, nuclear medicine services, mobile medical units, dental clinics, radiology facilities, and cancer day care centres are some of the key areas where PPP can be implemented. The Centre has proposed the engagement of private partners through contracts of five to ten years, thus, permitting long, term infrastructure development and operational stability.

The letter also highlighted issues with specialised care in smaller towns. It pointed out that people living outside major cities still have very limited access to nuclear medicine facilities for cancer diagnosis and neurological disorders. The Centre therefore proposed that district, level hospitals should be provided with facilities to offer services such as PET, CT scans, SPECT imaging, radiotherapy.

Besides that, the ministry drew attention to the shortage of staff and lack of proper infrastructure at community health centres (CHCs). Through a public, private partnership (PPP), the ministry suggested the upgrading of primary, level dental services across the State of Andhra Pradesh and considered it a matter of public health need.

On cancer care, the ministry stated that the PPP model is particularly suitable for setting up day care cancer centres, which offer treatment without the need for prolonged hospital stays. The Centre aims to ensure nationwide coverage of such centres by 2027–28. Fourteen cancer day care centres have already been sanctioned for Andhra Pradesh under this initiative.

The move aligns with the Centre’s broader strategy to improve healthcare access, reduce patient load on government hospitals, and encourage private sector participation in public health services.