Visakhapatnam: The Union govt has announced plans to upgrade the ESIS hospital in Visakhapatnam into a medical college, a move expected to expand medical education and strengthen healthcare delivery for ESI beneficiaries. The initiative is part of a nationwide effort to improve medical education and healthcare services under the ESI social security scheme.
The Employees' State Insurance Corporation (ESIC) has identified 10 ESIC/ESIS hospitals across India, including Visakhapatnam, for conversion into medical colleges. Responding to a query in the Rajya Sabha on February 5, Union minister of state for labour and employment Shobha Karandlaje confirmed that the upgradation would follow National Medical Commission norms once the Andhra Pradesh govt formally hands over the hospital to ESIC. "The handing over of the ESIS Hospital, Visakhapatnam, by the state govt to ESIC is awaited," she said.
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ESIC is simultaneously pursuing systemic reforms to broaden healthcare access for insured workers. A key proposal involves integrating services between Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) and the ESIC network, removing caps on treatment costs and enabling cashless care at PMJAY-empanelled hospitals nationwide.
This convergence is expected to improve accessibility, especially in regions lacking ESIC-run facilities.
For industrial hubs like Visakhapatnam, the proposed medical college would complement expanded referral options. A central ESIC team visited the city in January 2026 to assess feasibility. In parallel, a larger ESIC hospital project is underway at Sheelanagar, scaled to 400 beds—including a 350-bed general hospital and a 50-bed super-specialty wing—at a cost exceeding ₹380 crore. The facility is expected to enhance tertiary and super-specialty care for insured workers and their families.
The medical college proposal hinges on the Andhra Pradesh government's handover of the existing hospital. Ongoing discussions between state and central authorities aim to resolve staffing and operational issues while ensuring continuity of patient care.
Infogrpahics:
At present, a 200-bedded ESIS hospital is functioning in Vizag
400-bedded ESIC hospital is under construction at Sheelanagar as an advanced facility
Construction work on a 30-bedded ESIC hospital at Atchutapuram in Anakapalli district is also underway
ESI hospitals are established to provide comprehensive, cashless medical care to insured workers and their dependants under the ESI scheme
They form a critical component of India's social security system
Beyond patient care, ESI hospitals also support public health goals by reducing the burden on state healthcare facilities
In some locations, they serve as teaching and training centres for medical and paramedical professionals