The Cooperative Model in Healthcare is a concept and a government-backed scheme in India, primarily operationalized through the Ayushman Sahakar scheme. This model aims to expand affordable, community-driven health services by enabling cooperative societies to own and manage healthcare facilities. The core principle is service, not surplus, with democratic management by an elected board, ensuring member patients receive services at discounted rates.
The model's national scaling began with the launch of the Ayushman Sahakar scheme in 2020 by the National Cooperative Development Corporation (NCDC), in line with the National Health Policy, 2017. This initiative was designed to replicate the success of long-standing co-operative hospitals, such as those in Kerala, and address the problem of limited access and high out-of-pocket expenditure.
The mechanism involves the NCDC, under the administrative supervision of the Ministry of Cooperation, providing specialized financial assistance. Eligible entities are cooperative societies registered under State or the Multi-State Cooperative Societies Act, 2002, whose bye-laws include health-related objectives. The NCDC offers long-term loans covering up to 90% of the project cost for establishing or upgrading hospitals, AYUSH facilities, and telemedicine services, with repayment tenures up to 8 years.
The model connects directly to the Multi-State Co-operative Societies Act, 2002, which governs the registration and functioning of multi-state cooperatives. This Act was recently amended by the Multi-State Co-operative Societies (Amendment) Act, 2023, to strengthen governance and incorporate provisions of the 97th Constitutional Amendment, while the fundamental structure of the cooperative healthcare financing scheme remains the same.