**Executive Summary**
This document contains the answer of the Minister of State in the Ministry of Health and Family Welfare to an unstarred question in Lok Sabha regarding foreign participation in medical education. It clarifies eligibility for establishing new medical institutions according to the Establishment of New Medical Institutions Regulations, 2023, and highlights the role of State/UT Governments in regulating healthcare costs. The question was to be answered on February 13, 2026.
**Key Points / Main Content**
* **Eligibility for Establishing New Medical Institutions:**
* The Establishment of New Medical Institutions, Starting of New Medical Courses, Increase of Seats for Existing Courses & Assessment and Rating Regulations, 2023, framed by the National Medical Commission (NMC), provides a framework.
* Eligible entities include:
* The Central Government.
* The State Government or State Governments in partnership.
* The Union Territory.
* A university duly established in India.
* An autonomous body promoted by the Central or the State Government by or under a statute, without conflicting objectives for medical education.
* A society registered under the Societies Registration Act, 1860, or any equivalent state statute.
* **Regulation of Healthcare Costs:**
* "Health" is a State subject under the Seventh Schedule of the Constitution.
* State/UT Governments are responsible for monitoring and addressing excessive charges by private hospitals and preventing such practices.
* The Government of India enacted the Clinical Establishments (Registration and Regulation) Act, 2010 (CE Act).
* States/UTs that have adopted the CE Act are primarily responsible for regulating hospitals, including private hospitals, as per the Act to ensure affordable and quality healthcare.
**Impact Analysis**
**Stakeholder**: Entities Seeking to Establish Medical Institutions
* **Impact**: The "Establishment of New Medical Institutions Regulations, 2023" outlines the eligibility criteria, required documentation, assessment procedures, and penalties.
* **Action Required**: Review the regulations to ensure compliance with the eligibility criteria and procedures for establishing a new medical institution.
**Stakeholder**: State/UT Governments
* **Impact**: Responsible for monitoring and addressing excessive healthcare charges by private hospitals to ensure affordable and quality healthcare.
* **Action Required**: Monitor healthcare costs, address excessive charges, and potentially adopt and enforce the Clinical Establishments Act (CE Act).
**Stakeholder**: Patients
* **Impact**: Affected by the regulation of healthcare costs and the quality of care provided by hospitals.
* **Action Required**: No specific action is mentioned in this document.
Key Entities Referenced
Ministry of Health and Family Welfare: The central ministry responsible for health policy and oversight in India, answering questions related to foreign participation in medical education.
Establishment of New Medical Institutions, Starting of New Medical Courses, Increase of Seats for Existing Courses & Assessment and Rating Regulations, 2023: Regulations framed by the National Medical Commission (NMC) outlining requirements for establishing new medical institutions.
National Medical Commission (NMC): The regulator that framed the regulations for establishing new medical institutions.
Clinical Establishments (Registration and Regulation) Act, 2010 (CE Act): An act that empowers States/UTs to regulate hospitals and ensure affordable healthcare.
Societies Registration Act, 1860: Referenced as a legal framework for registering societies that can establish and regulate medical institutions.
GOVERNMENTOFINDIA
MINISTRYOFHEALTH AND FAMILYWELFARE
DEPARTMENTOFHEALTH AND FAMILYWELFARE
LOK SABHA
UNSTARRED QUESTION No. 2318
TO BE ANSWERED ON13THFEBRUARY, 2026
FOREIGN PARTICIPATION IN MEDICALEDUCATION
2318.SHRIRAJEEVRAI:
Will the Minister of HEALTHANDFAMILYWELFARE be pleased tostate:
(a)whether the Government proposes topermit or hasalreadypermittedforeigncompanies
or foreignInstitutions toestablish or operate medicalcollegesandassociated hospitals inthe
country;
(b) if so, the detailsthereof,including the policyframework, eligibilitycriteria andregulatory
approvalsrequiredfor such institutions;
(c)whether the Government hasexamined the likelyimpactof such institutions onmedical
educationstandards andhealthcare costs, particularlythe feescharged for medicaltreatmentin
hospitals attachedtosuch colleges andif so, the detailsthereof;
(d) whether anymechanism exists to regulate or capthe treatmentcharges, consultationfees
andprocedure costs leviedbyhospitals run byforeign-owned or foreign-managedmedical
institutions; and
(e)if so, the detailsthereof andif not,the reasons thereforalongwith the safeguards
proposed toprotectpatientsfrom excessive or unaffordablehealthcare costs?
ANSWER
THE MINISTEROFSTATE IN THE MINISTRYOFHEALTH AND FAMILY
WELFARE
(SMT. ANUPRIYAPATEL)
(a) to (e): The Establishment of New Medical Institutions, Starting of New Medical Courses,
Increase of Seats for Existing Courses & Assessment and Rating Regulations, 2023, framed by
the National Medical Commission (NMC), provides a comprehensive framework for the
establishment of newmedical institutions outliningthe categories of eligibleentities, prescribed
eligibility criteria, required documentation, procedures for assessment and rating and the
penalties applicable in cases of non-compliance. In accordance with these Regulations, the
following entitiesare eligible toapplyfor the establishment of a newmedical institution:
a.The Central Government;or
b.The StateGovernmentor StateGovernmentsinpartnership; orc.The UnionTerritory;or
d.AuniversitydulyestablishedinIndia;or
e.An autonomousbodypromotedbythe Central or the StateGovernment byor undera
statute, andhasnoconflictof objectivesforundertakingmedicaleducationbystarting a
medicalinstitution;or
f. A society registered under the Societies Registration Act, 1860 (21 of 1860) or any
respective statutemeanttoestablish andregulate Societiesinthe respectiveState;etc.
Further, as per the Seventh Schedule of the Constitution, “Health” is a State subject, and it is
the responsibility of the respective State/UT Governments to monitor and address cases of
excessive charges levied by private hospitals and to take action to prevent such practices. The
Government of India, however, has enacted the Clinical Establishments (Registration and
Regulation) Act, 2010(CE Act). The States / UTs which have adoptedthe CE Act are primarily
responsible for regulating theirhospitals including private hospitals asper provisions of the Act
andRulesthereundertoensure provision of affordable andqualityhealthcare topatients.
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