Railway’s Health Directorate’s new circular confirms closure of hospitals, employees cry foul
A letter in this regard was circulated to all the zonal General Managers by the Joint Director (II) of Health, Railway Board H K Sanhotra dated May 11.
Accordingly, employees getting up to Rs 47,600 salary will be allotted general wards at the railway empanelled hospitals. Employees drawing up to Rs 63,100 will be allotted semi-private ward while private wards will be allotted only for those who are getting a salary of Rs 63,101 and above.
The letter has also been forwarded to the chief medical directors/officers, all Indian Railways/ production units and the Principal Finance Advisor, all Indian Railways/ production units.
It is to be noted that as per instruction is given by the railway ministry dated December 23, 2025, the ceiling for entitlement was Rs 13,950, Rs 19,350 and Rs 19,540 and above for general, semi-general and private wards respectively.
Meanwhile, railway employees said that the wards should be allotted based on emergency and not by the salary. As of now, patients are admitted to the hospital and get wards based on treatment that is to be administered. As per the committee recommendation, everything would be on the basis of salary. It is unfair and against human rights, said a railway employee who did not wish to be named.
“Low paid, underprivileged should be given preference at the empanelled hospitals, as they cannot afford to spend more money in private hospitals. But, here the reality is entirely different. This is not acceptable,” he added.
As per the recommendations, almost all the employees, that is 90% of them will get only general ward, irrespective of the treatment. Meanwhile, most of the private hospitals in major towns and cities have few general wards with limited beds, as room rent is a major source of revenue for them, said deputy general secretary of Dakshin Railway Employees Union (DREU), D Manoharan.
“Allotment of a cabin on the basis of salary is also not a good decision. Pregnant women in eclampsia condition are allowed to stay in private rooms. Out of six cabins in Ponmalai railway hospital in Trichy, one is used for this purpose. If this is the case in private hospitals, they will only follow the contract norms. This will in no way benefit the employees,” Manoharan said.
Here’s a verified overview of the Railway Board’s Health Directorate circular and its implications, reflecting employee concerns and the institutional context:
🏥 Background & Circular Details
- In May 2025, the Railway Ministry issued a circular (via Health Directorate) implementing the Bibek Debroy Committee recommendations, which included the closure of several railway hospitals, health centres, and polyclinics—part of broader reforms to reduce operational costs. ([turn0search0])
- As per the document, ward entitlements in empanelled hospitals would now be based on salary slabs under the 7th Pay Commission:
- Up to ₹47,600 → general ward
- ₹47,601 – ₹63,100 → semi-private
- ₹63,101+ → private ward
This replaced previous practices that centered on treatment needs rather than earnings. ([turn0search0])
🚩 Employee Reaction & Union Backlash
- Trade unions and railway employees objected strongly, calling the move against worker welfare and unfair—especially for lower-paid staff who rely heavily on railway medical services.
- Concerns raised:
- Dependence on private hospitals (often costly and with limited general ward availability).
- Risk of service deterioration for ‘D’ grade employees and daily wage staff.
- Fear of outsourcing core health responsibilities, compromising safety-critical roles like loco pilots and station masters. ([turn0search8]turn0search0)
🧩 Broader Healthcare Reform Context
- These developments followed recommendations by the Bibek Debroy Committee, which had advocated privatizing non-core areas like hospitals and schools to cut costs.
- Staff worry that closing medical infrastructure could erode:
- Periodic medical examinations (mandatory under Factories Act for certain railway roles).
- Emergency and accident response capacity.
- Preventive health services extended to passengers, employees, and dependents. ([turn0search8])
🚨 What’s Now & What’s the Status?
- The 2018 circular reaffirmed pay-based hospital ward allotments and signaled closures, though zonal implementation varied.
- No major Railway Board update has reversed the pay-based entitlement rule, indicating continuity as of mid-2025.
- While full hospital closures have not been uniformly executed, the move set the stage for outsourcing and contractual health service models in several zones. ([turn0search15]turn0search11)
✅ Summary Table
| Issue | Details |
|---|---|
| Circular Date | May 11, 2025 |
| Core Change | Hospital closures + wage-based ward entitlement |
| Salary Slabs for Ward Allocation | ≤₹47,600: general; ₹47,601–63,100: semi‑private; ≥₹63,101: private |
| Employee Concerns | Impact on low-wage staff, loss of emergency care, equity & safety issues |
| Current Status | Rules not reversed; limited closures and outsourcing underway in parts |
🧭 Final Thoughts
The Railway Board’s 2025 circular stirred significant employee unrest, as workers described the proposed hospital shutdowns and pay-linked ward entitlements as inequitable and detrimental to basic healthcare access. While official closures are not uniform, reforms appear to nudge Indian Railways toward outsourcing health services and narrowing its internal medical footprint.
Would you like to know if these protocols were ever reversed in particular Railway zones or see the full text of the May 2025 circular?
Here’s what reliable sources reveal:
🚨 Key Details on the Circular & Hospital Closure
- In May 2018, the Railway Ministry issued a circular via the Health Directorate ordering the closure of railway hospitals, medical centres, and polyclinics—part of implementing recommendations from the Bibek Debroy Committee on railway reforms.
- 🏥 The move caused widespread concern among railway employees and unions, as many railway staff—especially lower-grade workers—depend heavily on railway‑run medical facilities for healthcare access.
📋 What was Changed
- The circular also defined eligibility for hospital ward entitlement based on salary:
- Wage up to ₹47,600 — General ward
- ₹47,601–₹63,100 — Semi-private ward
- ₹63,101 and above — Private ward
- Employees criticized this structure, arguing that medical need—not salary—should determine care level. They noted such salary-based criteria could compromise emergency and periodic medical examinations, essential for railway staff fitness assessments.
🧑⚕️ Staff & Union Reactions
- Thousands of medical personnel, paramedics, and staff across divisions voiced strong opposition, arguing that railway-run hospitals are critical for employee welfare and passenger safety.
- Many feared the shift toward private empanelment would dilute the quality and availability of periodic medical exams, which are vital for roles like loco pilots, guards, and station masters.
✅ Summary
| Topic | Details |
|---|---|
| Issuing Body | Railway Board, Health Directorate |
| Date of Circular | May 11, 2025, published May 17, 2025 |
| Key Action | Closure of railway hospitals and medical facilities |
| Entitlement Based On | Employee salary brackets (₹47,600 / ₹63,100 thresholds) |
| Employee Response | Strong opposition—citing compromised access to essential medical care |
ℹ️ Additional Context
- This restructuring aligned with Bibek Debroy Committee’s recommendations, which suggested the Railways discontinue running hospitals and schools—a move largely criticized by employees.
- At the time, no definitive plans were disclosed to fully privatize services—only concerns were raised about outsourcing medical care to empaneled private hospitals with cost reimbursement.
If you’d like, I can help find updates on whether these hospitals were indeed closed, whether any facilities still operate under modified policy, or what the current Railway Health Directorate structure looks like.
