Setting Up a Hospital in India – Must Read For Entrepreneurs

Setting up a hospital in India is not an easy task to accomplish even though it looks easy. Are you a medical doctor or an entrepreneur planning to establish a hospital? If so, here are some points to consider in the hospital setup process:

Where to locate the hospital?

You should first decide where to locate the hospital. You can establish the hospital in a locality with many hospitals. But, it might not bring your fruitful results. Further, it is good to make sure that the hospital is close to transportation facilities. This will help patients to easily reach your hospital. Considering the real estate costs these days, you will have to spend a lot on the property. Irrespective of whether you rent a property or construct, the cost will be huge.

What are the specialties to offer?

Another important thing to consider is the facilities and specialties to offer. Are you planning to offer orthopedician service? Is your hospital going to have a neurologist? Whether your hospital is going to be multi-specialty? Otherwise, you can establish the hospital with a general physician alone.

What are the permits to get?

Similar to that of a house, you should get some permits for constructing a hospital. For instance, you should get land and construction permits. Further, water and electricity permits are also important. You should also get sewage and biomedical waste management permits. Further, it is also important to get fire and health insurance.

Land and construction:

You cannot use a land that is used for the agricultural purpose for the construction of the hospital. Also, you will have to get the permissions from the local authorities.

Electricity and water:

You should also get appropriate permission from your local electricity and water boards. In addition, you should also calculate the water requirements. This requirement generally accounts to nearly 100 litres per day.

Sewage permission:

You should have the appropriate drainage and sewage system in place. This is important for human waste disposal. You can operate such systems only with the permission of the local authorities.

Biomedical waste:

Hospitals have the biggest concern called biomedical waste. This is something highly critical. You should get the appropriate permission from the Municipal Corporation. You should install incinerators needed for disposal of medical waste.

Health and fire license:

A fire license is something important to prove that the hospital will not cause any loss or damage to lives. You should get this license from the Municipal Corporation. The authorities will give the license only after inspection. As you are planning to provide health care to patients, it is important to get health license as well.

How about hospital infrastructure?

When it comes to hospital infrastructure, you need to take care of the following things:

  • Make sure that the name of doctors along with their state or MCI registration numbers and their qualifications are recorded
  • You should also make sure that nurses and their shift details are recorded
  • You have the appropriate medical instruments purchased. In case you plan to have a gastroenterologist in your hospital, just talk to the doctor to find the instruments needed. As per the recommendation of the doctor, the appropriate instruments are to be bought.
  • You should have computers and other facilities to maintain the records of patients
  • You should have appropriate staff strength or contract to maintain air conditioning units. Same thing applies to plumbing and other supplies.


Establishing a hospital is not a child’s play, you will have to follow multiple medical laws. More importantly, appropriate ethics should be in place. This is important because you are planning to operate in a service-oriented industry.

A lot of planning and decision-making becomes important. You should have the appropriate guidelines and licenses to set up the hospital. Most importantly, you should have ample time and mammoth effort to bring together the resources. If your hospital is going to be a multi-specialty hospital, you should have a good association with specialist doctors.

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