Government Secures $500M ADB Loan for Improved Health Care in Maharashtra

The Government has signed a $500 million loan agreement with the Asian Development Bank to enhance tertiary health care and medical education in Maharashtra. The project includes four new medical colleges with tertiary care hospitals, aiming to expand healthcare access, increase hospital bed capacity, and recruit new doctors.

The Government signed a $500 million loan package with the Asian Development Bank (ADB) on Wednesday to bolster access to high-quality tertiary health care and medical education in Maharashtra.

According to an ADB statement, the loan will fund the establishment of four medical colleges, each attached to a tertiary care teaching hospital. These institutions will include climate and disaster-resilient, gender-responsive, and socially inclusive features, specifically targeting underserved districts. The project also aims to expand the bed capacity in government tertiary care hospitals and plans to hire at least 500 new doctors for these new medical colleges.

ADB's initiative includes policy actions to create an enabling environment for recruiting and retaining high-quality doctors and staff. This involves providing performance-based incentives, formulating a new talent management policy, and setting up India's first state-led centers of excellence in healthcare and medical education. Additionally, the project seeks to reduce out-of-pocket expenditures for patients by ensuring the availability of better quality drugs.

(With inputs from agencies.)