High rent clouds revival of private medical stores at Chandigarh Civil Hospitals

While Jan Aushadhi stores have recently been made operational across all three civil hospitals in Chandigarh—Sector 22, Sector 45 and Manimajra—efforts to reopen private chemist shops on hospital premises continue to stall due to financial constraints faced by shopkeepers.

First introduced two years ago to offer round-the-clock access to essential medicines, private chemist shops were set up at hospitals as a patient-friendly initiative. However, within just a year, the outlets at Sector 22 and Manimajra were forced to shut down, largely due to unmanageable rents and insufficient sales.

According to Dr Suman, Director of Health Services, the establishment of Jan Aushadhi stores is part of a broader strategy to ensure affordable medication for all. “These outlets provide quality medicines at reduced prices. With their successful launch across all three hospitals, we’re now exploring options to restart the private shops too,” she said.

Staff members and officials say the biggest obstacle for private chemist shops has been the mismatch between revenue and rent. For instance, at the Sector 22 hospital—primarily a maternity facility—most medications are already provided free of cost by the hospital itself. As a result, footfall for general medicines remains low, while the shop rent stands at a steep Rs 10 lakh per annum. The presence of several nearby private pharmacies further reduces potential sales.

A similar situation prevails at the Manimajra hospital, where the shop could not remain operational beyond a year, facing similar rent-related pressures.

One private chemist still running

At Government Multi-Specialty Hospital (GMSH), Sector 16, only one private chemist outlet remains open, operating alongside a Jan Aushadhi store.

Hospital officials, however, have confirmed that tenders will soon be floated to fill the vacant space left by the outlet closer earlier. However, concerns remain about whether new vendors will find the proposition financially viable.

Call for revision of rent

Hospital authorities have clarified that the rent was not decided by the Health Department but determined by the Engineering Department based on land valuation. They have suggested that rent concessions or special considerations might be necessary to revive private participation in hospital-based pharmacy services.

Chandigarh