POTENTIAL LOSS OF U.S.$ 22.5 MILLION BY THE PARSEE COMMUNITY
The B. D. Petit Parsee General Hospital (PGH) has been
providing yeoman service to the community for the past 105 Years in the area of
charity healthcare. For the past few years, PGH has been facing many
challenges largely due to the following reasons:-
decline of the Parsi population.
young and middle aged Parsis settling either in the far-off suburbs or
migrating to foreign countries. With an
aging population and lack of variety of disciplines, it is difficult to get
infrastructure of the city necessitating people to seek medical attention
nearer home rather than traveling long distances.
Mediclaim and smaller Nursing Homes mushrooming in the suburbs, local
hospitalization is preferred.
to very low volumes, the provision of holistic medical services such as CT Scan,
MRI, Path Lab etc. is not economically viable.
60% of the occupied bed days are utilized either for free or subsidized
patients, thus affecting the PGH’s revenue stream, resulting in a
recurring annual operating deficit of nearly ₹ 8 crore, for the past many years.
PGH therefore finds it extremely difficult to continue
providing even the current level of healthcare services especially to the poor
and indigent members of the community.
At a time like this, to ensure PGH continues to serve the
community for at least the next 50 years, the benevolent couple, Pervin and Jal
Shroff of Hongkong, magnanimously came forward to support PGH by pledging US $
22.5 Million for establishing a state-of-the-art New Hospital on following
1.The New Hospital be
called Shroff Medical Centre of the B D Petit Parsee General Hospital. It should be for a secular use, with special
emphasis on cancer treatment.
2.The pledged amount
be used only for erecting the New Hospital Building, to be owned by PGH, so
that the financial benefit flows to PGH, which in turn would help the poor and
needy of the community on a long term sustainable basis.
3.The New Hospital to
be a multi-specialty Hospital to be operated by a professional organization
having the latest state-of-the-art facilities. Such professional operator
to have a pan-India presence and operating revenues of not less than ₹
1000-crore with at least 1000 beds under its management in Tier I & II
cities and no other operating Hospital in Greater Mumbai area.
4.The operator to pay
an annuity as also a certain percentage of gross billable revenue to PGH.
Contractors, Operators etc., to be appointed by PGH only after obtaining approval from the Donors.
In substance, the
Donors are gifting to the Hospital a new building to be used only for the specified
In accordance with these conditions, the Architects,
Contractors, Operators etc. were finalized after taking into account their
technical and financial qualifications and competency by PGH jointly with the
Donors. Accordingly, M/s. Somaya & Kalappa were appointed as Architects.
Tenders were thereafter floated by the Architects and M/s. Premier
Construction Co., were appointed as Contractors, after following the due
process, for execution of the Project. Likewise, Municipal Architects, M/s.
Sunil Ambre & Associates and other Consultants too were engaged.
Since the Donors were very particular about appointing a
reputed party to equip, operate and manage the New Hospital, several Hospital
Groups were invited and interviewed. The selection of Medanta was made
after various lengthy detailed discussions in Mumbai between representatives of
PGH, Donors and Medanta. The final
selection was made only after the Donors personally visited Medanta’s
facilities in Gurugram and satisfied themselves about their medical expertise,
caliber and professionalism.
In October 2017, PGH was proud to announce its association
with Global Health Private Limited (a Company belonging to Medanta Group) to
operate, equip and manage the New Hospital to be constructed by PGH on an
earmarked area of the PGH property at Bomanjee Petit Road, Cumballa Hill, Mumbai,
which is less than 6% of total land area of PGH, from the munificent
pledge of $ 22.5 million from Jal and Pervin Shroff.
BROAD TERMS OF THE AGREEMENT AND BENEFITS TO THE COMMUNITY
PGH was earlier restricted by confidentiality provisions in
the Agreement. However, it appears from
an Article in Times of India, that the Agreement was somehow already in public
domain. In any event, PGH has now
obtained the consent of Dr.Trehan to put the broad terms of the Agreement
before the public as under:-
(a) The New Hospital Building of a value of approximately ₹
150 crore will be erected and owned by PGH. This will be an accretion to
the Community assets.
(b) The state-of-the-art multi-specialty New Hospital will
be a seven-storey building having an area of 225,000 Sq. Ft. for secular use to
be constructed and owned by PGH, but equipped, managed and operated by Medanta.
(c) No part of the land on which the New Hospital is to be
erected will be alienated but will continue as a community asset. Medanta will only
have operating, equipping and management rights for the New Hospital. Medanta
shall have no rights to the New Hospital Building, nor the land.
(d) Medanta, at its own substantial cost, will equip,
operate and manage the New Hospital with state-of-the-art healthcare
facilities, equipment and services.
Diagnostic facilities like MRI etc. will thus be available on the PGH
(e) Medanta will initially place an interest free cash
deposit of Rs.4 crore from the date of Commencement Certificate until the
date on which Medanta commences operations of the New Hospital. Simultaneously,
a Bank Guarantee of Rs.2 crore to be given by Medanta which will continue till
Medanta commences operations.
(f) Medanta will pay a yearly annuity of Rs.12 crore for the
first 30 years and if the period is extended, then will pay an yearly annuity of
Rs.18 crore for the next 15 years.
(g) Over and above the annuity, Medanta will pay a sum
equivalent to 1% in the first three years, going upto 5% on and from the 8th
year of the gross billable revenue without any deduction on any account.
This concept to take care of inflation over the period of the Agreement because
if the revenue increases, the percentage receipts also increase.
(h) PGH will not be involved or be responsible for any
operational and management matters in the New Hospital and Medanta alone will
be responsible and liable for day-to-day operations and management and quality
of care provided at the New Hospital.
(i) Medanta to give preference to poor, indigent and weaker
section of patients referred to Medanta by PGH.
(j) Medanta will charge such concessional rates as may be
mutually agreed by the parties, for specialized treatment to be rendered in the
New Hospital which are otherwise not available at PGH. Patients can have access to super-specialty
facilities at the New Hospital and move back to PGH for post-operative stay,
thus increasing the occupancy of PGH.
(k) Medanta will assist the PGH, free of cost, in training
the nursing staff and medical personnel attached to PGH.
(l) All these will be
achieved without even one rupee of the Hospital’s funds being used and that the
Hospital parting with any asset.
THESE ARE THE BENEFITS THE COMMUNITY WILL LOSE IF A FEW
MISGUIDED PERSONS ARE ALLOWED TO DERAIL THIS PROJECT.
PGH has taken legal advice to ensure that it does not breach
the provisions of the Trust Deed/Rules and Regulations of PGH by entering into
the New Hospital Project. Legal advice received also opines that since there is
no alienation (but on the contrary, there is an accretion to the PGH property),
hence, Section 36 of the Bombay Public Trust Act does not apply and no
permission of the Charity Commissioner is required. The Trustees of the Bombay Parsi Punchayet
have also given their wholehearted endorsement of the Project.
During last 3-4 months, a few persons from the community
started raising questions on the viability of the New Hospital Project. They alleged
that the project was ill-conceived and costs inflated. Besides, Medanta was not
the right selection to operate the New Hospital. We did make attempts to clarify
various issues raised by them and shared with them, in good faith, details including
of the financials of the project. Regrettably, some gentlemen have now started
personal attacks on social media on the President and some of the Executive
Committee members casting aspersions on our character and integrity. We are
contemplating appropriate action, including legal options.
An application challenging the New Hospital Project, has
been filed with the Charity Commissioner’s Office wherein unsavoury allegations
have been made, and this is also being responded to appropriately.
It will not be out of place to reiterate that the family of
Petits have, over six generations during one century, nurtured PGH selflessly
and with utmost care and diligence. We do not want to allow a handful of ill-informed
and misguided persons to make personal accusations, whatever be their motive,
and go scot free. We would rather call off the Project on our own, if our
community is not with us, rather than allow anyone to point a finger at us and
question our integrity. Community welfare is important but not at the cost of
our personal integrity.
In the meantime, while both the Donors and Global Health
Pvt. Ltd. have stated that they will not consider any amendment to the original
Agreement, nor any counter-proposal, but if the community issues are not sorted
out in the next few months, THE DONORS HAVE CATEGORICALLY CONFIRMED THAT THEY
WILL WITHDRAW THEIR PLEDGE TO DONATE U.S.$ 22.5 MILLION OFFER AND GLOBAL HEALTH
PVT. LTD. HAS STATED, THAT IT WILL ALSO TERMINATE THE AGREEMENT. In such a
situation, the only losers will be the community and unfortunately the poor and
needy, and the responsibility for this disastrous fallout will rest squarely on
the heads of these self-appointed critics, for scuttling a well-conceived and thoroughly
researched project that would sustain the Hospital for the benefit of
generations to follow.
Now that the community is aware of the correct facts, they
could not be misguided by false and misleading statements. The Executive Committee of PGH, therefore,
appeals to each and every member of the Parsi and Irani Zoroastrian Community
to wholeheartedly support the new hospital venture. If the community chooses
not to support the Project, all that we and the Donors can say is that WE TRIED
OUR BEST, AND SADLY, AS MENTIONED ABOVE, THE ONLY LOSERS WILL BE THE POOR AND
NEEDY OF THE COMMUNITY.
HOMA D. PETIT
THE B D PETIT PARSEE GENERAL HOSPITAL