FEES REGULATION IN PRIVATE MEDICAL COLLEGES
National Medical Commission (NMC) has released the guidelines to determine the fees of private medical institutes and deemed to be universities for the 50% of the seats in them.
NMC received around 1800 responses from Medical institutes/associations and General Public regarding the Fee regulation and after consultations, NMC decided that the fees of 50% seats in Private Institutes and Deemed to be universities should be at par with government institutions. The guidelines stated that the benefit of this fee structure would be first available to those students who have availed government quota seats but it would be limited to the extent of 50% of the total sanctioned seats of the institute. However, if seats of government quota are less than 50% of total seats, the remaining students can avail this benefit of fees based on merit.
National Medical Commission (NMC) has issued the principles which need to be followed for fixing fees in Private Colleges and Deemed Universities. These principles are listed below
Operating cost should form the basis for determining the fees of medical courses and operating cost should be taken on the basis of the last audited annual account of the institute. For a newly established college where the last audited accounts are not available, the fee structure should be determined on the basis of the most recently established medical institute of the state whose audited accounts are available. All private institutes should adopt operation segment reporting in accordance with the Ministry of Corporate Affairs (MCA). Fee for the development should be kept at 6% to 15% of the operating cost can be added in the fees for the development expenditure of the institute and this amount should not be used for any other purpose
Cost Determination of Student
Total sanctioned seats should be taken into consideration for determining the cost per student. It should be done separately for MBBS and PG courses. Fees fixed for a student should remain the same for the entire duration of his study
Depreciation of Assets
The method adopted for the calculation of depreciation should be the same year on year basis. Depreciation should be used only on those assets which have been used in that year.
Interest Cost of Loan
The interest cost of the loan taken to meet the expenditure of the institute should only be taken into consideration for calculating the fee only if the loan is taken from the scheduled commercial banks. The loan which is utilized only for the medical institute should be considered to fix the fees
Any interest cost which has been given in advance and has not been utilized in that particular year should not be considered to fix the fee.
Any grant or concessions which have been received by any private or deemed to be university should be considered for determining the fees. Any assets purchased with the money received from any grant/donation/aid should not be accounted for fee determination. Security deposits taken by private institutions should not be accounted for fixing of fees.
Fees for the PG courses could be determined on the basis of salaries of teaching staff and other direct expenses. Other common expenses for MBBS & PG courses should be determined by dividing the total common expenses by the total number of students.
Capitation fee would not be charged by any institution. All hospital expenses should not be included in determining the fees. Mess, hostel, library, examination fees and transport fees could be calculated on the actual expenditure incurred for providing these facilities and the number of students availing these services.
For hostel rent, State Fee Regulatory Authority should decide whether the hostel rent should not exceed the rental value in that area
If a State Fee Regulatory Authority decides to make a uniform fee structure in the state, then it could do so provided there is no issue among the colleges and the minimum and maximum fees for the college is nominal.
Private institutes and deemed to be universities should publish a prospectus on their website containing the information of the annual audited accounts and other details related to mess, transport, hostel, and library expenses