Mumbai Healthcare Boost: BMC Proposes 22 Per Cent Health Budget Hike To ₹7,456 Crore With Hospital Expansion And PPP Push

Mumbai, Feb 25: In a move aimed at strengthening the city’s public healthcare system, the Brihanmumbai Municipal Corporation (BMC) has proposed a 22.14% increase in its Health Department budget for the financial year 2026–27, while continuing to expand services under the Public-Private Partnership (PPP) model.

The budget, presented by Municipal Commissioner Bhushan Gagrani, outlines a balanced approach that combines higher public investment with strategic private participation.

The total health allocation has been proposed at Rs 7,456.80 crore, up from the revised estimate of Rs 6,104.75 crore in 2025–26 — an increase of over Rs 1,350 crore. Of this, Rs 5,237.09 crore has been earmarked for revenue expenditure and Rs 2,219.17 crore for capital expenditure.

The capital allocation for health accounts for around 5% of the BMC’s overall capital budget, signalling a focused yet substantial commitment to hospital redevelopment, equipment upgrades and infrastructure expansion.

Hospital expansion and diagnostics push

A major component of the plan is the addition of 4,556 new beds across municipal hospitals. However, these beds are expected to become operational over the next two to three years.

The civic body is also investing in advanced diagnostics. Four major municipal hospitals will soon be equipped with in-house 3-Tesla MRI machines, reducing dependence on private empanelled centres and cutting waiting times.

All machines have already been procured. The move is expected to improve access to high-resolution imaging for neurological, cardiac and musculoskeletal cases.

PPP expansion and political opposition

At the same time, the PPP model remains central to service delivery expansion. In 2025 alone, over 20,000 dialysis sessions were conducted across ten PPP-operated centres.

The next phase includes the operation and maintenance of additional dialysis centres, management of dispensaries and diagnostic facilities, and expansion into services such as CT scans, MRI, cath labs, blood banks and ICU intensivist support.

However, the PPP model continues to face opposition. Several elected corporators have opposed the move in the past. It remains to be seen how strongly they raise objections during the upcoming budget discussions.

Insurance coverage and reimbursement plan

From this year onwards, the Health Department will work to enrol at least 25% of patients in BMC hospitals under schemes such as Mahatma Jyotiba Phule Jan Arogya Yojana, Pradhan Mantri Jan Arogya Yojana, Employees' State Insurance Corporation, and the Employees Group Insurance Scheme to secure reimbursement of healthcare expenses.

Expenses for BMC employees will be recovered through the Group Health Insurance Scheme. In the future, BMC plans to expand this initiative to cover all eligible patients and encourage hospitals to maximise reimbursements under these schemes.

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Major budget allocation

. Redevelopment of Sion Hospital Premises Phase-I and Phase II – Rs 230 crore

. Redevelopment of Rajawadi Hospital Phase-II – Rs 60 crore

. Multi-Specialty BMC Hospital at Bhandup (S Ward) – Rs 160 crore

. Construction of Specialty Hospital for Cancer at Bandra – Rs 40 crore

. Redevelopment of Siddharth Hospital – Rs 78 crore

. Two towers in KEM Hospital campus – Rs 27 crore

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