Parliament passes bill to run BMU hospital through companies

A bill seeking to amend the Bangladesh Medical University Act, 1998 was passed in Parliament yesterday (13 July) to facilitate the operation of the university's Super Specialised Hospital and empower the institution to establish and invest in companies to expand medical education, research and healthcare services. 

Health Minister Sardar Md Sakhawat Hossain moved the bill in parliament along with recommendations of the parliamentary special committee. It was passed by voice vote on 13 July during a sitting chaired by Deputy Speaker Kaisar Kamal.

The government said the initiative would improve specialised medical services.

However, opposition lawmakers criticised it as a step towards privatising the public healthcare sector.

The bill seeks to amend the Bangladesh Medical University Act, 1998, under which the university was established to promote higher education, research and advanced healthcare services in the country.

According to the statement containing the objectives and reasons of the bill, a Super Specialised Hospital was later established under the university, but despite completion of its construction, it could not fully start operations due to the absence of adequate doctors and supporting staff, as well as the lack of a clear operational framework.

To make the hospital functional, the university's Syndicate decided to operate it under the Companies Act, 1994, making it necessary to amend the existing law.

Under the amended law, Bangladesh Medical University will be able to form companies under the Companies Act, 1994, or establish not-for-profit institutions to expand healthcare services alongside education and research activities.

The university will also be able to acquire, hold and transfer shares in different companies.

The bill aims to provide the university with explicit legal authority to establish and manage such companies while clarifying the Syndicate's powers, the scope of regulations governing these entities, provisions for incorporating income generated by them into the university's funds and conditions for investment from university funds.

The government said running the hospital through a company would help establish a clear management structure, enable recruitment of doctors and other personnel, attract renowned local and foreign specialists, and strengthen medical education, research and advanced clinical training.

According to the bill, establishing internationally standard specialised hospitals under this framework will enable the university to engage renowned local and foreign physicians, teachers and researchers on a contractual basis, facilitating the transfer of modern medical technology, knowledge and expertise.

The bill said the government believes the initiative will strengthen residency, fellowship and other advanced medical training programmes, provide students with improved clinical exposure and help produce internationally competent doctors, researchers and healthcare professionals.

Income earned from these initiatives, including dividends, lease or licence fees and other income from companies owned by or affiliated with the university, will be deposited into the university fund and reinvested in healthcare, education and research activities.

Opposition lawmakers opposed the law, saying healthcare activities of a public university should not be conducted through companies.

They said the provision could make healthcare more market-oriented and deprive ordinary people of their basic right to healthcare.

The health minister rejected the criticism, describing the provision as a "unique" initiative aimed at ensuring quality healthcare for the country's 18 crore people.

He said the government would ensure that poor and middle-income people continue to receive medical services.

At the same time, the new structure would help expand specialised healthcare services, he said.

Earlier on 28 June, the health minister placed the bill in parliament.

It was later sent to the parliamentary special committee for scrutiny and submission of a report.