In a country, like India, with a rapidly growing population, affordable healthcare is a necessity and not a luxury. According to World Health Organization (WHO), India needs 80,000 more hospital beds. Currently, India has only one hospital bed for 879 people. However, setting up a hospital is a complex process, requiring a lot of paperwork, money and time. Yet, it is essential that this situation is rectified and the best way ahead is by establishing private hospitals.

Let’s go through a list of things that one must consider before setting up a private hospital in India:

Licenses and Permits:

As per the rules and regulations set by the government, a hospital license needs to be availed. The next step is to purchase a piece of land. To start building a hospital, several documents such as a land deed, plan clearance certificate, no objection certificates and finally, an occupation certificate must be obtained. To summarize, numerous permissions must be obtained prior to construction. After construction, to avail water, electricity and sewage facility, permission from the local body must be obtained.


 One must ensure that they choose the right location for their hospital. It must be easily accessible to the public and must be in close proximity to good transportation facilities. It is an added advantage if the area is near the main centre of the town or city. One must also evaluate their competition before building a hospital. It will be difficult to attract patients if there are major hospitals with similar facilities already present in that area.

Also Read : How Doctor Loan Can Help You Set Up Your Practice

Services or facilities offered:

 One must decide beforehand if they are going to construct a general, speciality or multispecialty hospital. General hospitals diagnose and treat patients in several specializations. Whereas, speciality hospitals can focus on one or two specialities, such as cancer or heart disease. Based on the services offered, you could deploy required medical laboratories, surgery facilities, ambulances and other supporting medical facilities.

Disposal of medical waste:

 Disposal of biomedical waste is a grave issue. Obtaining permission from the Municipal Corporation is vital before installing the necessary equipment. Medical waste needs to be categorized and treated accordingly to prevent infections from spreading. Usually, medical waste, except plastics, is disposed of by incineration and permission is required from the corporation before installing this equipment.


 The doctors, nurses and other support staff are crucial to the hospital’s success. Hence, it is necessary to run a check on their credentials. A training and development program must also be available for staff and measures must be taken to improve the medical technology in the hospital. The price of medical services, the profit margin and the revenue must carefully be considered before providing services to patients.

Business Insurance:

 Avail a business insurance to insure your company against financial risk and market fluctuations is a must. They must also ensure that they buy the right insurance to safeguard their company against any liabilities. Similarly, for doctors and hospitals, an indemnity insurance is crucial. Such an insurance ensures that your hospital is secure in case a patient sues you for medical negligence.

Financing Options:

 One must also be aware of the financing options available before building a private hospital. You could compare the available options of doctor loans for financing. If you wish to apply for a loan, you should compare the tenor, the interest rates, the fees structure and the repayment options.

To Sum it up

You dreamed of becoming a doctor, now is the time to dream big. To establish a multispecialty hospital and better serve the needs of your patients, get the financial support through a Doctor Loan.

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