NMC Fee Guidelines: 50% Private Medical Seats at Govt College Fees

NMC Fee Guidelines: The purpose of the National Medical Commission (NMC) was to bring reforms in India’s medical education system. In this direction one of its crucial provisions, Section 10(1)(i), mandates the NMC to frame guidelines for the determination of fees and other charges for 50% of seats in private medical colleges and deemed universities governed under this Act.

This fee regulation is aimed at ensuring transparency, affordability, and standardisation, especially for meritorious students seeking MBBS and Postgraduate (PG) medical education.

Background and Objective

To implement Section 10(1)(i), the Central Government directed the then Board of Governors (BoG) of the Medical Council of India (MCI) to draft fee fixation guidelines. An Expert Committee was formed by the BoG on 23rd November 2019, and subsequently by the NMC.

The National Medical Commission Act 2019 empowers to bring change and implement provisions for better change in medical education in India.

After reviewing approximately 1,800 public responses, the NMC finalised and accepted revised guidelines on December 29, 2021.

The goal: make 50% of the seats in private medical institutions affordable, with fees at par with government medical colleges in respective States and Union Territories.

NMC Fee Guidelines

No Capitation Fees

Capitation in any form is strictly prohibited. Institutions found violating this are liable for regulatory and legal action.

Fees Based on Operating Costs

Fees should reflect genuine operational expenses and must adhere to the non-profit ethos of education. Components include:

• Salaries of teaching/non-teaching staff
• Lab maintenance
• Administrative costs
• Infrastructure upkeep
• Library resources
• Amortised capital expenditure

Use of Audited Financial Data

Fee determination should rely on audited accounts, preferably for the past three years. In the absence of such data (e.g., newly established colleges), fees may be set ad hoc based on peer institutions.

Fee Parity with Government Colleges

Candidates availing government quota seats (up to 50% of the sanctioned intake) in private colleges will pay fees equivalent to government medical colleges. If the government quota seats are fewer, the remaining seats will be allotted this benefit based on merit.

Key Principles for NMC Fee Guidelines

Transparent Segmentation of Expenses

• Institutions must follow Ind AS 108 for segment reporting
• It will clearly outline costs for academics, hospital, hostel, and auxiliary services.

Selective Inclusion of Hospital Costs

• Only a justifiable portion of hospital costs used for education may be considered.
• For loss-making hospitals in underdeveloped areas, up to 20% of hospital costs can be included temporarily (5-7 years max).

Staff Salaries and Ratios

• Full salaries of clinical teaching staff (engaged in hospitals) are counted.
• Stipends for interns and PG students are considered hospital costs.
• TRACE reports may be used for salary verification.

Depreciation & Interest

• Depreciation must be consistent and applicable only to used assets.
• Interest on loans is only admissible if from scheduled banks and used directly for the institution.

NMC Fee Guidelines for Other Costs

Grants and Donations

• Revenue grants lower the fee burden.
• Corpus donations and assets purchased via grants are excluded from the fee calculation.

Security Deposits

• Refundable deposits must be reasonable.
• Interest earned should reduce operating costs, not inflate them.

Postgraduate Course Fees

Fees should reflect:

• Direct course-specific costs
• Shared infrastructure and staffing costs
• A reasonable portion of hospital usage
• PG stipends are treated as hospital costs

Development and Ancillary Fees

Development Fee

A 6%-15% margin may be added for institutional growth, based on:

• Past development (5-10 years)
• Future expansion plans
• Performance ratings (proposed NMC mechanism)

Optional Facilities

Hostel, mess, transport, and library charges should:

• Reflect actual usage-based costs
• Be optional and transparent
• Stay within fair market rental values

Implementation Framework

State-Level Flexibility

• Fee structures may be fixed college-wise or uniformly within a state.
• A consensus-based median band can be used where appropriate.

Uniform Guidelines for Deemed Universities

The same norms apply to deemed universities as to private colleges, ensuring uniformity.

Mandatory Disclosure

Colleges must publish:

• Audited accounts
• Faculty details
• Hospital and hostel expenses
• Miscellaneous charges

The NMC’s fee determination guidelines suggest a shift towards affordable, fair, and accountable medical education in India. By aligning 50% of private medical seats with government college fees and regulating remaining fees through transparent, cost-based evaluation, the NMC ensures that merit and equity will bright the future of India’s healthcare education.

These guidelines also empower State Fee Regulatory Authorities (FRCs) to monitor and fine-tune college fees, ensuring that students are not burdened by excessive or unjustified costs while maintaining the financial sustainability of quality medical institutions.

Fee Regulatory Authorities (FRCs) are established by state governments to regulate and determine the fees charged by private unaided professional educational institutions. These authorities aim to ensure fair and reasonable fee structures for students and prevent capitation fees or exorbitant charges.