Madhya Pradesh Government Issues Show-Cause Notice to Care Hospital Indore Amid Concerns
Health Officer Issues Show-Cause Notice to Blackstone-Owned Hospital in Madhya Pradesh
The Chief Medical and Health Officer of Madhya Pradesh, Dr. Madhav Prasad Hasani, has issued a show-cause notice to Care CHL, a hospital owned by Blackstone, in Indore. The notice, dated May 29, was sent to the hospital as a result of an inspection that revealed 11 different violations of rules.
According to the notice, the hospital has been asked to provide a response within a month as to why its licence should not be revoked under the hospital rules of Madhya Pradesh. The notice alleges that the hospital's actions violate the prescribed rules for operating a nursing home under the M.P. Nursing Home and Clinical Establishments Rules 1997 (Registration and Licensing Act 1973) (as amended 2021).
The development assumes significance as Care Hospitals is in the final stages of executing a merger with Aster DM, another hospital chain. The merger, announced in November 2024, will make the combined entity the third largest hospital chain in India both in terms of revenue and capacity. Following the merger, Aster DM will have 38 network hospitals across 27 countries with over 10,000 beds.
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
During the inspection, the health officer made several observations on the hospital's operations. The cardiac operation theatre was found to have a broken floor, with cardiac monitors and machines kept on a wooden box. The walls of the theatre had no tiles or antibacterial coating, and there were seepage and cracks on the walls in other major OTs. Rust was also found on the iron pipes of OT lights and tables in various places, posing a constant risk of infection.
The officer also raised concerns about the hospital's MRI machines, stating that one of the machines was not registered under the PNDT registration number 372. Additionally, the report questioned the hospital's emergency ward procedures, including the fact that some doctors working in the emergency ward were not registered.
| Observations | Details |
|---|---|
| Cardiac operation theatre | Broken floor, cardiac monitors and machines on wooden box, no tiles or antibacterial coating on walls |
| Other major OTs | Seepage and cracks on walls, rust on iron pipes of OT lights and tables |
| MRI machines | Unregistered, no permission for sale/purchase or installation report from competent PNDT authority |
| Emergency ward | Unregistered doctors, emergency ward gate used as main gate, no separate fire exit |
Care CHL is a 200-bed multispecialty hospital in Indore, Madhya Pradesh. Founded as Convenient Hospital in 2001, it was the first corporate hospital in central India. In June 2022, Quality Care India Ltd (QCIL) acquired a 95% stake in CHL for Rs 380 crore, and the remaining 5% in April 2024. QCIL is owned by the US private equity firm Blackstone.
Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
As per the latest corporate filings and presentations, QCIL has 19 operating hospitals with over 5,150 beds capacity. Care CHL is a profitable hospital, known for its strong clinical expertise in the fields of cardiology/cardiac surgery, neurosciences, gastroenterology, liver transplants, renal sciences, and critical care.
More in Economy
Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
MoSPI Releases Uniform Norms for DDP Estimates with 2022-23 Base Year
