The Brihanmumbai Municipal Corporation (BMC) has invited bids from private operators to run the redeveloped 490-bed Bhagwati Hospital under a 30-year public-private partnership (PPP) model in Borivali West, Mumbai, Maharashtra, India.

The hospital has a planned capacity of 490 beds, including 90 intensive care unit (ICU) beds, and is intended to strengthen access to advanced medical services in Mumbai’s western suburbs. The initiative seeks to combine private-sector investment and healthcare expertise with continued public ownership of the hospital and its premises. Under the proposed arrangement, the BMC will retain ownership of the hospital building and land, while the selected operator will be responsible for hospital operations and investment in medical equipment and facilities. The tender conditions reported require the private partner to invest at least ₹150 crore (US$15.8 million) in infrastructure, equipment and related facilities. The hospital is expected to include advanced diagnostic services, such as MRI and CT scans, a catheterisation laboratory and nine operation theatres. The operator will also be required to pay the BMC a minimum annual lease rent of ₹6.56 crore (US$0.7 million), subject to the terms of the agreement.

An important feature of the project is the provision for public access and affordable treatment. At least 50% of the hospital’s beds are to be reserved for BMC patients and beneficiaries of government healthcare schemes, including Ayushman Bharat and the Mahatma Jyotirao Phule Jan Arogya Yojana. The BMC has also prescribed treatment rates and monitoring mechanisms intended to protect patients from arbitrary charges. Oversight is expected to include a municipal officer, access to the hospital’s digital management and billing records, and a dedicated grievance redressal mechanism.

The proposal represents a reversal of the position announced in April 2025, when Union minister Piyush Goyal stated that Bhagwati Hospital would not be privatised and should instead be operated by the BMC or a charitable organisation on a no-profit, no-loss basis. The renewed tendering process has brought the question of private participation in public healthcare back into focus. The main objective of the proposed PPP is to mobilise private capital and operational expertise while retaining civic ownership and safeguards for eligible patients. Its implementation will depend on the final contract, the selection of an eligible operator and the BMC’s ability to enforce the agreed service standards and affordability requirements.