VIDARBH ’S POWER WOES : X High energy tariff a HEADACHE for healthcare sector

 

 

MAY it be hospitality sector or healthcare sector, a common problem haunting the both is high electricity tariff. While the hospitality sector is stuck between boom and high tariff burden, the healthcare sector is struggling to strike a balance between rising energy consumption and high tariff raising the expenditure bill. Though the city of Nagpur in particular, and Vidarbha region in general, are emerging as medical tourism hubs, high power tariff is one of the factors contributing to rising operating costs for healthcare units. Nagpur city alone has between 480 and 500 big and small hospitals registered with the Government agencies. In the last 10 years, chains of corporate hospitals have found immense potential for growth in Nagpur. The corporates have either acquired the existing hospitals or come up with their own units. KIMS has taken over Kingsway Hospital, and Max Healthcare has bought Alexis hospital. Other major healthcare units -- Wockhardt, CARE, Meditrina, Neuron, Nelson, New Era -- are operational for a considerable period of time. In recent times, Midas hospital has expanded itself. Colors hospital, too, has come up. Besides, 12/15 medium-sized hospitals are waiting for buyers. But, the rising cost of electricity is making the operations of hospitals expensive as they have to maintain energy-intensive instruments and equipment. Ultimately, this cost is passed on to citizens, making the healthcare costlier for the common man, who every politician of every political party claims to care about. When ‘The Hitavada’ spoke to a few leaders from the healthcare sector, the picture that emerged was not very promising for growth.

 

According to Dr Anup Marar, President of Vidarbha Hospitals Association ( VHA), “In Maharashtra, we have base electricity tariff of Rs 10.50/- per unit. After addition of other charges, the landed cost of power works out to be over Rs 15/unit. InTelangana and Andhra Pradesh, the landed cost of power is just over Rs 9.5/unit. The difference between tariff in Maharashtra and these two States comes to Rs 6/unit. In total operations cost, this difference does matter.” If the average electricity bill for a corporate hospital in Nagpur is Rs 60 lakh per month, then for those many number of electricity units consumed, the same hospital pays Rs 36 lakh in Telangana and Andhra Pradesh or even in Chhattisgarh, he elaborated with an example.

 

This difference is almost of 60 per cent! Earlier, Dr Marar added, Maharashtra Government was providing subsidy with a particular formula, but the same stands withdrawn now. Dr Tushar Gawad, Unit Head KIMS-Kingsway Hospitals, pointed out that there was a steady rise of 5 per cent in energy tariff every year. Since 2020-21, the tariff has been rising, except in 2021-22 due to aftermath of COVID-19 pandemic. Rough calculations reveal that the tariff has increased by 15 per cent over the last four years. “Now, our average monthly electricity bill amounts to Rs 60-65 lakh which means we pay over Rs 7.8 crore annually on this account. All the hospitals are buying electricity at commercial rate. In Maharashtra, the landed power cost is 15.50/unit. If we compare these rates with those of Telangana and Andhra Pradesh, the difference is considerable. In both these States, the landed cost of electricity is Rs 10/unit while in Maharashtra we are paying much more. We have no other alternative but to go for solar energy. Hence, we have started drawing solar power through open access, which has resulted into 20 per cent reduction in our power cost,” he said. Electricity bills witnessed increase by 7.25 per cent in the previous year. Now, there is an additional 7.50 per cent hike this year, plus fixed charges have increased by 10 per cent annually.

 

“The rise in tariff will directly affect the consumers, who will have to bear the cost,” said Dr Marar. VHA keeps raising this issue regularly before the officials concerned.“We have always requested the authorities to look personally into this aspect. We feel that India is providing only 1.3 per cent of its Gross Domestic Product for healthcare. If Government expects private healthcare industry to join hands with it in steering healthcare sector to a newer height, our grievances also should be paid heed to. How could the Government expect us to cooperate, if electricity charges are rising consistently? As an association, we will meet the authority concerned on the issue of energy tariff to press for its reduction,” he stressed. Delay in reimbursement of expenses out of free treatment to beneficiaries of various Government schemes just adds to the difficulties of the private hospitals, which share 80 per cent of healthcare burden, he added. The radiology units face another issue. They are not able to save energy because CT Scan, X-ray, MRI Ultra Sound machines consume a lot of energy. Dr Raju Khandelwal, Managing Director of Advanced Imaging Point, Ramdaspeth, said, “Till last year, we were paying average electricity bill upto Rs 2.5 lakh per month. It has increased to Rs 3 lakh now. We have to keep cooling unit and chiller on for 24 hours. It is very difficult to achieve viability in running a radiology unit. Under various healthcare schemes, Government asks us to charge less for services provided. How can we survive if we don’t get any subsidy, any facility, any relief from operating expenses? Now, the Government has levied electric duty also on us.

 

We suffer a lot, but who cares...” The grief of rising operational expenses is shared across the healthcare sector, and the ultimate bearer of all these expenses is the proverbial common man. Besides, high electricity tariff is not proving to be conducive to growth of power-generating but industrially backward and commercially opportunitydeprived region like Vidarbha. “By now, Nagpur could have established itself as the medical tourism centre of the country. This has not happened. Air connectivity is an important part but the hospital cost plays a significant role as far as medical tourism is concerned. If steps are not taken in time, continued rise in energy tariff will surely dampen the prospects of the city from becoming medical tourism hub,” Dr Gawad concluded. Based upon the growth of healthcare sector, several direct and indirect employment opportunities have emerged on the scene -- ambulances, equipment, medical supplies, medicine shops, care-givers, food suppliers, fruit vendors, affordable stays, other transport, so on and so forth.

 

Buoyed with this, some leaders in Nagpur have started weaving dreams about turning Nagpur into a major med-tech (medical technology) hub, involving manufacture of equipment. But, the ‘dream merchants’ are probably ignoring the basic trouble with all the plans -- high power tariff is affecting the prospects of the city as well as entire Vidarbha region. Dreams are realised only when efforts are made to realise those. (To be continued)