Bhutan Opens Healthcare Sector to Private and Foreign Investments Under New Regulatory Framework
In a landmark move to enhance medical services and improve patient care, Bhutan has announced the introduction of private and foreign investments in its healthcare sector. The new regulatory framework, titled The Healthcare Services Rules and Regulations 2025, was unveiled yesterday by the Ministry of Health. This initiative aims to expand healthcare infrastructure while maintaining strict oversight to ensure quality and compliance.
The framework outlines a comprehensive licensing system for private healthcare centers, categorizing facilities into nine distinct types: Super-specialty hospitals, multi-disciplinary hospitals, traditional medicine hospitals, general hospitals, primary healthcare centers, diagnostic centers, allied healthcare centers, clinics, and other services. Each category will be subject to rigorous evaluation and approval by the Ministry of Health, ensuring that all facilities meet national standards.
Licensing and Compliance
Under the new rules, healthcare providers must first obtain a provisional technical authorization, valid for one year, to begin operations. During this period, the Ministry of Health will conduct inspections to verify compliance with regulations. Unauthorized modifications or violations can lead to the revocation of the authorization. Following the establishment phase, providers must apply for a full technical authorization, which is granted for five years after a final inspection.
The regulations emphasize transparency and accountability. If a proposal is denied, the Ministry will provide written reasons for the refusal, and applicants will not be entitled to a refund of any fees paid. Additionally, the Ministry retains the authority to suspend or revoke authorizations if healthcare providers violate regulations, endanger patient safety, or operate outside their approved scope. Conviction by a court of law can also result in the cancellation of authorization.
Patient Safety and Infrastructure Standards
To safeguard patient health, the regulations mandate that healthcare facilities adhere to strict design and construction standards. Facilities must be disabled-friendly and ensure round-the-clock access to drinking water and hygiene facilities. Emergency preparedness is also a priority, with every facility required to have a written fire safety and emergency response policy.
The regulations also address operational transparency. Healthcare providers must submit detailed price breakdowns for each service to the Ministry for approval. Approved prices must be publicly displayed, and patients must receive itemized bills and receipts. Facilities are further required to maintain statistical records of treatment costs, which must be made available to the Ministry upon request.
Balancing Privatization and Public Health
While the new framework opens the door to private and foreign investments, health officials have clarified that this does not signify a full-scale privatization of Bhutan’s healthcare system. "We are currently assessing which types of healthcare centers and services can be privatized," said a Ministry of Health official. "The government will make decisions based on healthcare infrastructure development and the level of strain on existing public health services."
This strategic approach aims to alleviate pressure on public healthcare systems while ensuring that private and foreign investments contribute meaningfully to the nation’s healthcare goals. By fostering collaboration between public and private sectors, Bhutan seeks to create a more robust and accessible healthcare system for its citizens.
The Healthcare Services Rules and Regulations 2025 mark a significant step forward in Bhutan’s healthcare evolution, balancing innovation with stringent oversight to prioritize patient care and safety.
