Kerala’s health sector needs selective private participation, says Muraleedharan

K. Muraleedharan | Photo credit: ANI

Health Minister K. Muraleedharan said that given the state’s fragile fiscal health, private participation may be needed to develop the health sector. However, the government will ensure that this does not translate into additional healthcare spending for the people, he added.

Speaking to reporters in Kozhikode on Friday, Mr Muraleedharan said that just as the Left had opened up the state’s higher education sector to private investment, there would be a need for some private sector involvement in the health sector, especially as the state’s financial position was in the red.

“If any reputable private firm steps up to invest in infrastructure development – perhaps a new building for a public sector hospital – we will certainly accept it,” he said.

Maximum use of CSR funds

However, the government will be very selective about private investors in healthcare. “We will make maximum use of corporate social responsibility (CSR) funds provided by healthcare companies. We also welcome sponsorship in the healthcare sector from reputed companies,” said Muraleedharan.

He said this is one of the many innovative ways the government intends to improve and develop the health sector. He added that the government alone may not be able to turn around the state’s healthcare system with the state’s current fiscal position.

It may be recalled that the Health Commission set up by the UDF, then in opposition, had a special sub-section in its report on “CSR Mobilisation, Philanthropy and Innovative Funding” recommending the creation of a Kerala Health CSR fund and a portal for pooled corporate contributions.

“Ancillary activity”

There was also talk of launching a Health Innovation Challenge Fund, supported by CSRs and foundations, exploring social impact bonds and investments from non-Keralites, and partnering with tertiary care charities in underserved areas of the state. The report acknowledged that “private sector investment, innovation and services are major contributors to the state’s success story”.

However, he stressed that any involvement of the private sector would be a complementary activity and not a substitute for public health care provision. He also emphasized that any Public Private Partnership (PPP) or CSR arrangement must have government oversight and quality standards.

Published – 05 June 2026 20:20 IST