Pune Charitable Hospitals Hold Crores in Unused Funds for Indigent Care

Pune, 15th April 2025: Over 36 charitable hospitals in the city are sitting on substantial unspent funds, totaling crores of rupees, which could be used to provide free or subsidized healthcare to the underprivileged. This information was revealed through balance reports, covering the period ending March 31, 2025, that were submitted by 52 such hospitals to the Pune charity commissioner’s office.

Under the Bombay Public Trusts Act, charitable hospitals are required to reserve 10% of their beds for two key groups: indigent patients and those from economically weaker sections. In addition, these hospitals must allocate 2% of their total billing for the treatment of these groups. For example, if a hospital generates a bill of Rs 1 crore in a month, it must set aside Rs 2 lakh from that amount to treat the designated categories of patients. This fund is referred to as the Indigent Patients Fund (IPF).

However, an analysis of the balance reports has raised concerns, revealing that many hospitals governed by the Bombay Public Trusts Act have significant amounts of money sitting idle in their IPF accounts. Of the 58 charitable hospitals in the city, six have yet to submit their reports.

Among those with unused IPF funds are some of Pune’s largest healthcare institutions. Deenanath Mangeshkar Hospital, which recently attracted controversy, reported a balance of Rs 35 crore in its IPF account as of March 31. Ruby Hall Clinic had Rs 2.28 crore, Aditya Birla Hospital had approximately Rs 13.07 crore, and Inamdar Multispecialty Hospital had Rs 73.86 lakh.

“The Indigent Patients’ Fund operates on a rolling balance, which fluctuates positively and negatively each month. There are times when the demand for financial aid is lower, and at others, we end up spending well beyond the available resources. But irrespective of these variations, every patient who comes through our doors receives complete care. Even when someone doesn’t formally qualify for assistance, we often extend support purely out of goodwill.”
— Mr. Behram Kodaji, Group CEO, Ruby Hall Clinic

In response to questions about the unused funds, representatives from some of these hospitals explained that the IPF balance fluctuates. “The funds in the IPF account are not static and may change due to varying factors throughout the year,” said a hospital spokesperson. They also highlighted that a lack of awareness among patients about available government schemes and a low number of people seeking assistance were contributing factors to the underutilization of the funds.

“We encourage eligible individuals to come forward and benefit from the support available to them,” the spokesperson added.