Charitable hospitals or commercial ventures?
Charitable hospitals or commercial ventures?
Fortis is willing to pay the difference between concessional and commercial land rates for Escorts Heart Institute.

New Delhi: Escorts Heart Institute in Delhi is under an eviction order from the Delhi Development Authority after Fortis Heathcare acquired it last month.

The sale has miffed the DDA, which gave the hospital concessional land in 1982 as charity.

Fortis says it is willing to make amends for the conversion of the charity into a commercial venture and its subsequent acquisition.

Chairman, Fortis Healthcare, Harpal Singh, said, "We will go by the court?s decision on the matter."

He added that in May 2004, there was a suggestion from Escorts to make a one time payment to DDA of less than Rs 20 crores.

A settlement would mean that when Fortis takes over Escorts, it will not have to provide the mandatory 25 per cent concessional beds to the poor."

The conversion of Escorts Hospital into a commercial venture is being separately challenged in the Delhi High court.

If the DDA accepts the payment, Escorts will be freed of the obligation to provide concessional treatment to the poor, though it might continue providing such treatment to earn goodwill.

And if the DDA does accept the money, it might just set a precedent for other specialty hospitals to become exclusive healthcare centres for the moneyed.

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