Govt takes over Udupi hospital after billionaire mentor runs into financial trouble

Udupi: The government of Karnataka has taken over the Koosamma Shambhu Shetty Memorial Haji Abdullah Mother and Child Hospital in Udupi from NRI businessman Dr Bhavaguttu Raghuram Shetty who has run into financial troubles. The billionaire businessman took over the historic hospital for further development. But after Dr Shetty's enterprises in Abu Dabhi ran into financial problems and sustained heavy losses the family of Dr Shetty expressed its inability to foot the bills for the development of the hospital.

In a letter given to the health department, the family stated that it was unable to manage it for reasons beyond its control. The State cabinet's decision in this regard has provided some respite to needy patients who have been unable to access care in recent months due to periodic strikes by the hospital staff over non-payment of salaries.

Following these developments, the government has decided to take over the hospital, said K Raghupahti Bhat, Udupi MLA. He said on Thursday that the government had decided to take over the 200-bed hospital and sanction Rs 98.3 lakh for maintenance expenses besides promising to recruit 102 employees. He stated that the process of taking over the facility would begin soon.

"Because the hospital had previously been handed over to BRC Ventures on a PPP basis, but without a valid MoU, hospital management had become complicated," Bhat stated. They subsequently wrote to the government, expressing their inability to keep the facility running.

On Wednesday, the State cabinet agreed to run the hospital. The government would also look after the private company's employees who are assigned to the hospital," Bhat added and assured the staff, who included doctors and nurses, who met him on Thursday, that their services would be continued.