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The decision will allow these institutions to independently procure medical equipment and manage operational expenses, especially during emergencies such as the recent fatal Air India plane crash in Ahmedabad.
The announcement followed a high-level meeting between the state government and the health department on Tuesday.
According to the new directive, financial powers will be delegated to the institutional level.
This is expected to speed up the procurement and maintenance of critical medical equipment and services, reducing bureaucratic delays. Heads of Departments (HODs) will also be given increased responsibilities under the new framework.
Currently, deans of government medical colleges can approve purchases up to ₹5 lakh. The new policy is expected to raise this limit to enable more flexible and timely decision-making during medical crises.
The government has also decided to extend financial support to Primary Health Centres (PHCs) and Community Health Centres (CHCs).
The assistance will cover medicine procurement, medical equipment, ambulance maintenance, electrical and infrastructure repairs, and other essential services.
By empowering healthcare administrators at multiple levels, the state hopes to improve operational efficiency, strengthen emergency preparedness, and enhance service delivery across its public health network.
While the policy marks a significant shift towards decentralised healthcare governance, its success will depend on implementation rigour, institutional capacity, and financial accountability -- especially during high-pressure situations like the Ahmedabad plane crash.