PUNJAB SPECIALIZED MEDICAL INSTITUTIONS ACT 2025

Exact source transcription retained, including print layout and extraction artifacts. Text SHA-256: 5fef183029bddf6af3f2ddfb3d6cf619c9eac858c926e066baab57d5865ec8d0.

PUNJAB SPECIALIZED MEDICAL INSTITUTIONS ACT 2025  
(LVI of 2025) 
CONTENTS 
1. Short title, extent, application and commencement 
2. Definitions 
3. Specialized Medical Institution 
4. Objectives of the Specialized Medical Institution 
5. Administration of the affairs of the Specialized Medical Institution 
6. The Board 
7. Conduct of business of the Board 
8. Functions and powers of the Board 
9. Search and Nomination Committee 
10. Affiliation of Specialized Medical Institutions 
11. Management Committee 
12. Dean 
13. Hospital Director 
14. Functions of the Hospital Director 
15. Medical Director 
16. Functions of Medical Director 
17. Nursing Director 
18. Finance Director 
19. Employees of the Specialized Medical Institution 
20. Special Selection Board 
21. Retention of fee 
22. Duties of healthcare service providers 
23. Fund 
24. Budget, audit and accounts 
 
 
25. Power to make rules 
26. Power to frame regulations 
27. Removal of Difficulties 
TEXT 
1
PUNJAB SPECIALIZED MEDICAL INSTITUTIONS ACT 2025  
(LVI of 2025) 
           [25 June 2025] 
An 
Act 
to improve medical education, responsiveness and quality of clinical care for patients 
in an effective, efficient and accountable manner. 
It is necessary to improve medical education, responsiveness and quality of clinical 
care for patients and enhance healt hcare services in Specialized Medical Institutions 
in an effective, efficient, responsive and transparent manner, and for the matters 
connected therewith and ancillary thereto. 
Be it enacted by Provincial Assembly of the Punjab as follows: 
1. Short title, extent, application and commencement. - (1) This Act may be 
cited as the Punjab Specialized Medical Institutions Act 2025. 
(2) It extends to whole of Punjab. 
(3) It shall apply to such Specialized Medical Institution as notified under 
section 3 of the Act. 
(4) It shall come into force at once. 
2. Definitions.- In the Act: 
(a) “Act” means the Punjab Specialized Medical Institutions Act 2025; 
(b) “basic science faculty ” means a medical faculty not involved in patient 
care; 
(c) “Board” means the Board of Governors constituted under section 6 of 
the Act; 
(d) “Chairperson” means the Chairperson of the Board;  
(e) “clinical faculty ” means a medical faculty involved in  clinical care of 
patients, whether diagnostic or therapeutic; 
(f) “consultant” means and includes a person qualified to provide the 
highest level of medical and healthcare services and recruited or 
appointed as such; 
(g) “Dean” means the academic head of a Specialized Medical Institution; 
(h) “employee” means an employee of a Specialized Medical Institution 
appointed under the Act or a civil servant on deputation to a 
Specialized Medical Institution; 
                                                 
1This Act was passed by Provincial Assembly of the Punjab on 16 June 2025; and was assented to by Governor of the Punjab 
on 25 June 2025; and was published in the Punjab Gazette (Extraordinary), dated: 25 June 2025, pp. 5239-5247. 
 
 
(i) “Government” means Government of the Punjab; 
(j) “healthcare service ” means preventive, curative, promotive, 
rehabilitative h ealth service and includes diagnostic, support service, 
laboratory, accident and emergency, pharmacy and paramedic 
support; 
(k) “medical faculty ” means the basic science faculty and clinical faculty 
and includes an Assistant Professor and above as well as Dean of a 
College, involved in teaching, training or patient care; 
(I) “Member” means a Member of the Board; 
(m) “prescribed” means prescribed by the rules or regulations made or 
framed under the Act; 
(n) “regulations” means the regulations framed under the Act; 
(o) “rules” means the rules made under the Act; 
(p) “Search and Nomination Committee ” means the Search and 
Nomination Committee constituted under section 9 of the Act; and 
(q) “Specialized Medical Institution ” means a Specialized Medical 
Institution as notified under section 3 of the Act. 
3. Specialized Medical Institution.- (1) The Government may, by a notification 
in the official Gazette, notify a medical college, a dental college or any other health 
related teaching institution or an affiliated teaching hospital, wholly or partially funded 
by the Government, as a Specialized Medical Institution for the purposes of the Act. 
(2) A Specialized Medical  Institution, notified under sub -section (1), shall 
be a body corporate having perpetual succession and a common seal with power to 
acquire, hold and dispose of movable property and may by its name sue or be sued: 
(3) Every Specialized Medical Institution may consist of a college or a 
teaching institution or both and  such number of hospitals as may be notified by the 
Government. 
4. Objectives of the Specialized Medical Institution. - The objectives of the 
Specialized Medical Institutions shall be to: 
(a) undertake all functions required for providing health facilities to the 
people; 
(b) provide medical education, training and research; 
(c) provide health facilities and services to the people; and 
(d) perform such other ancillary functions as may be assigned to it b y the 
Government. 
5. Administration of the affairs of the Specialized Medical Institution. - (1) 
The general administration of the Specialized Medical Institution and its affairs shall 
vest in the Board. 
(2) The Board shall transact and dispose of its business in such manner as 
may be prescribed. 
 
 
(3) If, for any reason, the Board becomes dysfunctional, the  Government 
shall constitute an administrative committee to run the affairs of the Specialized 
Medical Institution for a period of three months. 
6. The Board.- (1) The Board of Governors shall comprise as under: 
(a) Secretary to the Government, Specialized 
Healthcare and Medical Education 
Department or his representative not below 
the rank of Additional Secretary. 
Member 
(b) Secretary to the Government, Finance 
Department or his representative not below 
the rank of Additional Secretary. 
Member 
(c) Secretary to the Government, Planning and 
Development Board. 
Member 
(d) Secretary to the Government, Law and 
Parliamentary Affairs Department or his 
representative not below the rank of  
Additional Secretary. 
Member 
(e) Dean. Member 
(f) five persons of eminence from private sector 
including at least one female Member from 
the civil society. 
Members 
(g) Hospital Director Member/ Secretary 
(2) The Government shall appoint the Members at clause (f) of sub-section 
(1) for a period of three years, on the recommendation of the Search and Nomination 
Committee, on such terms and conditions as may be prescribed by the rules but 
such Members shall serve during the pleasure of the Government. 
(3) The Members at clause (f) of sub -section (1) may resign from their 
office before the expiry of tenure by submitting their written resignation to the 
Government through the Board. 
(4) The Members at clause (f) of sub -section (1) may include health 
specialist, management financial experts and a person of eminence in medical 
education. 
(5) The Government may nominate the Chairperson from amongst the 
Members at clause (f) of sub-section (1). 
(6) In addition to the powers and functions of the Chairperson provided in 
the Act, he shall exercise such others powers and perform such other functions, not 
inconsistent with the provisions of the Act, as may be prescribed through rules. 
(7) The Board shall have overall superintendence and control over the 
functioning and administration of a Specialized Medical Institution. 
 
 
(8) The Board may co -opt an expert for its assistance in the meeting for a 
specific purpose but such co-opted expert shall not have a right to vote. 
7. Conduct of business of the Board. - (1) The Board shall meet at least six 
times in a financial year. 
(2) The Chairperson and in case of his absence, a Member nominated by 
the Chairperson and if so not possible, the Member so elected by the Members 
present, preside over the meetings of the Board. 
(3) One-half of the Members, including at least two Members at clauses 
(a) to (d) of sub -section (1) of section 6, shall constitute the quorum for a meeting of 
the Board. 
(4) All decisions of the Board shall be tak en by simple majority of the 
Members present and voting, and, in case of tie, the person presiding over the 
meeting shall have the casting vote. 
(5) No act or proceedings of the Board shall be invalid, merely on the 
ground of existence of any vacancy in the Board. 
(6) The Member count shall be determined by actual Members being 
present and proxy vote shall not count. 
(7) The Board may convene its meeting on the request of the Chairperson 
or of at least one -third of the Members for consideration of any impor tant or urgent 
matter. 
(8) Subject to the provisions of the Act and rules made thereunder, the 
Board may constitute committees to perform such functions as may be prescribed. 
(9) The Secretary to the Board shall: 
(a) perform all secretarial functions of th e Board at the direction of 
the Chairperson; 
(b) convene meetings of the Board; 
(c) record minutes of the meetings of the Board;  
(d) communicate with all Members; and 
(e) perform any other function as may be assigned to him  by the 
Board. 
8. Functions and powers of the Board. - (1) The Board shall, subject to the 
provisions of the Act, rules and regulations made or framed thereunder, exercise 
complete administrative, financial and academic powers in respect of the Specialized 
Medical Institution as may be necessary for its proper and efficient functioning. 
(2) Without prejudice to the generality of the foregoing provision, the Board 
shall: 
(a) lay down policy for the administration of the property, funds, 
investment and resources of the Specialized Medical Institution 
including approval of purchase or acquisition of immoveable 
property and borrow or raise money for the purpose of the 
Specialized Medical Institution; 
 
 
(b) approve annual plan of work, annual and revised budgets, 
annual report and annual statement of accounts; 
(c) supervise and control over the Specialized Medical Institution; 
(d) approve the appointment of professionals, Deans, teaching staff 
of the Specialized Medical Institution or a committee; 
(e) examine annual research program, annual reports and audited 
statements of accounts of the Specialized Medical Institution; 
(f) create, suspe nd or abolish such posts of medical, nursing, 
administrative, para-medical, teaching and non -teaching staff of 
the Specialized Medical Institution as may be necessary; 
(g) determine terms and conditions of the teaching and non -
teaching staff of the Specialized Medical Institution; 
(h) consider and approve annual and revised budget estimates and 
to re -appropriate funds from one major head of expenditure to 
another and to appoint internal and third party auditors; and 
(i) cause proper books of accounts to be kept for all sums of 
money received and expended by the Specialized Medical 
Institution and for asset and liabilities of the Specialized Medical 
Institution. 
(3) The Board may, subject to such conditions as it may impose, delegate 
any of its functions to t he Chairperson or a committee comprising of Members of the 
Board. 
9. Search and Nomination Committee. - (1) There shall be the  Search and 
Nomination Committee consisting of the following: 
(a) Minister for Specialized Healthcare and 
Medical Education. 
Chairperson 
(b) Additional Chief Secretary, Punjab. Vice Chairperson 
(c) Secretary to the Government, Specialized 
Healthcare and Medical Education 
Department. 
Member 
(d) a retired senior person from medical 
profession, to be nominated by the Chief 
Minister. 
Member 
(e) two representatives of civil society, to be 
nominated by the Chief Minister. 
Members 
(2) The Chairperson of the Search and Nomination Committee shall 
preside over the meetings of the Committee and in his absence, the Vice 
Chairperson shall preside over the meetings. 
(3) The Members at clauses (d) and (e) of sub -section (1) shall hold office 
for a period of three years and shall be eligible for another term of three years or part 
 
 
thereof as deemed appropriate, however they shall serve during the pleasure of the 
Chief Minister. 
10. Affiliation of Specialized Medical Institutions .- (1) Every Specialized 
Medical Institution, for the purpose of medical education, shall affiliate with a medical 
university for the purposes of syllabus, curriculum, examination or for any other 
purpose as may be required. 
(2) A Specialized Medical Institution shall be headed by a Dean, and shall 
consist of chairpersons and medical faculties of various departments of the 
Specialized Medical Institutions. 
(3) A Specialized Medical Institution shall have an academic council, 
headed by the Dean and consisting of such num ber of members as may be 
prescribed, to set principles and standards for teaching, research, training, student 
admissions, and curriculum development and to ensure and inculcate highest ethical 
standards. 
11. Management Committee. - (1) Every hospital formi ng part of a Specialized 
Medical Institution, shall have a management committee headed by the Dean and 
consisting of the following members: 
(a) Hospital Director;  
(b) Medical Director;  
(c) Nursing Director; 
(d) Finance Director; and 
(e) two persons nominated by the Board on the recommendation of 
the Dean. 
(2) The Management Committee shall: 
(a) review and recommend annual operating and development 
budget for approval of the Board; 
(b) coordinate to ensure compliance of the relevant standards; 
(c) submit a quarterly report on management, healthcare services 
and financial management to the Board; 
(d) recommend to the Board any addition of a department, facility or 
post at the Specialized Medical Institution; and 
(e) perform all such functions as may be assigned by the  Board or 
prescribed by the regulations. 
12. Dean.- (1) The Dean shall be appointed by the Board for a period of four 
years, who shall be eligible for re -appointment, on such terms and conditions and 
having such qualifications and experience as may be prescribed. 
(2) The Dean shall be the Chief Executive Officer of a  Specialized Medical 
Institution. 
(3) The Dean shall act to ensure that the Specialized Medical Institution is: 
(a) functioning in accordance with the Act, rules and regulations; 
 
 
(b) complying with minimum standards regarding provision of health 
services; 
(c) maintaining medical records of all patients;  
(d) maintaining all other records; and 
(e) working in accordance with the policy directions of the Board. 
(4) The Dean shall, on his appointment, simultaneously receive a faculty 
appointment at a level commensurate with his qualifications and the prescribed 
Institutional requirements for the faculty post. 
(5) The chairpersons of various departments in the Specialized Medical 
Institution shall be appointed by the Board, on such terms and conditions and in such 
manner as may be prescribed and the chairperson may be removed by the Board on 
the recommendations of the Dean. 
(6) The Dean may be removed from the office by the Board, before the 
expiration of the period of four years at any time on such grounds as may be 
prescribed including failure to achieve targets set by the Board. 
(7) In the performance of his functions, the Dean shall be responsible to 
the Board and the chairpersons of the departments shall be responsible to the Dean 
and the Academic Council. 
(8) The Board, in absence of the Dean, shall appoint from amongst the 
chairpersons a Vice-Dean to perform the functions of the Dean. 
(9) The Dean may delegate any of his powers to any other officer or 
committee of the Specialized Medical Institution. 
(10) The Dean shall be the principal accounting officer, responsible and 
accountable for maintaining financial discipline and transparency. 
13. Hospital Director.- (1) The Board shall appoint a Hospital Director for every 
hospital forming part of the Specialized Medical Institution for a period of four years. 
(2) The Hospital Director shall be eligible fo r re -appointment, on such 
terms and conditions as the Board may determine: 
Provided that no Member of the Board shall be appointed as  Hospital 
Director. 
(3) The Hospital Director shall possess a recognized Master's degree in 
hospital management or health services management or business management or 
public health or public administration or any other relevant management 
qualifications and having experience of management in an organization or institution 
as may be prescribed: 
Provided that a person, who pos sesses a recognized medical degree may 
also apply for the post of Hospital Director with the condition that he shall have an 
additional management degree and experience provided in this sub-section and shall 
have no right to do private practice. 
(4) The Ho spital Director may be removed from the office by the Board, 
before the expiration of the period of four years on such grounds as may be 
prescribed. 
 
 
(5) In performance of his functions, the Hospital Director shall be 
responsible to the Board through the Dean. 
(6) The Hospital Director shall not have any conflict of interest with his 
position as Hospital Director. 
14. Functions of the Hospital Director. - The Hospital Director shall be 
responsible for: 
(a) non-clinical functions of the hospital; 
(b) preparation of annual budget, and business plan for presentation to the 
Dean; 
(c) maintenance of building and engineering services; 
(d) maintenance and development of all ancillary services, including but 
not limited to pharmacy, nursing, materials management, huma n 
resources, clerical, communication, janitorial and security services; 
(e) procurement; and 
(f) implementation and execution of the orders of the Board and Academic 
Council and to achieve the targets set by the Board. 
15. Medical Director.- (1) The Board shall appoint a Medical  Director for every 
hospital forming part of the Specialized Medical Institution for a period of four years 
who shall be eligible for re -appointment, on such terms and conditions as the Board 
may determine: 
Provided that no Member of the Board shall be appointed as Medical Director. 
(2) The Medical Director shall, on his appointment, simultaneously receive 
a faculty appointment at a level commensurate with his qualifications and the 
prescribed institutional requirements for the faculty post. 
(3) The Medical Director shall possess a recognized medical degree with 
management or administrative experience of working in management positions in an 
institution or organization as may be prescribed by the Board. 
(4) The Medical Director may be removed from the office by the Board, 
before the expiration of the period of four years, on such grounds as may be 
prescribed by the Board. 
(5) All heads of clinical department shall report to the Medical Director. 
(6) In performance of his functions, the Medical Director shall be 
responsible to the Board through the Dean. 
(7) The Medical Director shall not have any conflict of interest with his 
position as Medical Director. 
16. Functions of Medical Director. - The Medical Director shall be responsible 
for all clinical functions of the hospital, including: 
(a) ensuring clinical excellence in all functions of the hospital; 
(b) ensuring timely and appropriate management of patients; 
(c) ensuring the best services for all patients; 
 
 
(d) undertaking clinical governance for quality control; 
(e) assessing and auditing existing clinical programs and developing new 
clinical programs; 
(f) developing annual clinical budget; 
(g) medical equipment requests for presentation to the Medical 
Superintendent and Management Committee; and 
(h) ensuring compliance with minimum standards pertaining to healthcare 
services and maintenance of medical records. 
17.  Nursing Director.- (1) The Board shall appoint a Nursing Director for every 
hospital forming part of the Specialized Medical Institutions for a period of four years, 
and shall be eligible for re -appointment, on such terms and conditions as the Board 
may determine: 
Provided that no Member shall be appointed as Nursing Director.  
(2) The Nursing Director shall possess such qualification and experience 
as may be prescribed by the Board. 
(3) The Nursing Director may be removed from the office by the Board 
before the expiration of a period of four years, on such grounds as may be 
prescribed by the Board. 
(4) In performance of h is functions, Nursing Director shall be responsible 
to the Board through the Dean. 
(5) The Nursing Director shall not have any conflict of interest with his 
position as Nursing Director. 
(6) The Nursing Director shall be responsible for all nursing functio ns, 
including training of nurses, ensuring adequate nursing staff for all clinical 
requirements, maintaining the highest nursing standards and performing regular 
audits of nursing functions. 
(7) The Nursing Director shall perform such other functions as ma y be 
prescribed by the Board. 
18. Finance Director.- (1) The Finance Director shall be appointed by the Board, 
in the manner as may be prescribed, for a period of three years, and shall be eligible 
for re-appointment. 
(2) The Finance Director shall have su ch minimum qualification and 
experience as may be prescribed. 
(3) In performance of his functions, the Finance Director shall be 
responsible to the Board through the Dean. 
(4) The Finance Director shall be responsible for all functions relating to 
finance, including but not limited to: 
(a) compliance with financial rules and propriety;  
(b) pre-audit functions; 
(c) ensure value for money; and 
 
 
(d) liaise on and coordinate with external audit. 
19. Employees of the Specialized Medical Institution. - (1) The Board may, on 
the recommendations of the Special Selection Board, appoint such number of 
employees for services and operations of the Specialized Medical Institution. 
(2) The employees so appointed shall not be considered as the employees 
of the Government. 
(3) The Board may determine the terms and conditions of the service of 
various categories of the employees. 
(4) The employees of the Specialized Medical Institution shall be liable to 
such disciplinary action in such manner as may be prescribed. 
(5) The Board may post doctors and nurses on deputation basis in the 
Specialized Medical Institution with the prior approval of the Government. 
(6) Where the Dean, Hospital Director, Medical Director or Finance 
Director are Government servants, they shall receive such additional remuneration 
as may be determined by the Board and approved by the Government. 
(7) Only consultants and heads of clinical disciplines shall be allowed 
institutional-based private practice as may be prescribed by the rules. 
20. Special Selec tion Board. - (1) The Government shall, on the 
recommendations of the Board, constitute a Special Selection Board which shall 
recommend appointment of persons in the Specialized Medical Institution. 
(2) The Special Selection Board shall consist of such numb er of members 
as may be determined by the Government. 
(3) The members determined under sub -section (2) shall include 
representatives of: 
(a) Secretary to the Government, Specialized Healthcare and 
Medical Education Department; 
(b) Secretary to the Governme nt, Services and General  
Administration Department (Regulations Wing); and 
(c) one subject specialist to be nominated by Secretary to the 
Government, Specialized Healthcare and Medical Education 
Department. 
21. Retention of fee. - (1) Notwithstanding anything contained in any law for the 
time being in force or the rules, a Specialized Medical Institution shall retain receipts 
from various fees levied by the Government or Board to meet its recurring and 
development expenditure. 
(2) The amount realized f rom receipts of a Specialized Medical Institution 
may not be deducted from the annual grant of the Specialized Medical Institution 
provided by the Government and such amount realized from receipts shall be utilized 
as may be specified by the Board. 
22. Duties of healthcare service providers. - Every healthcare service provider 
in a Specialized Medical Institution shall: 
 
 
(a) comply with the minimum standards; 
(b) maintain medical records and other records in the prescribed manner; 
and 
(c) provide same level of care to private and non-private patients. 
23. Fund.- (1) There shall be a Fund to be known as the Specialized Medical 
Institution Fund, which shall vest in the Specialized Medical Institution and shall be 
managed and operated by the Board. 
(2) The Fund shall consist of: 
(a) grants from the Government as a single line budget;  
(b) receipts and user charges as specified by the Board  in 
consultation with the Government from time to  time in such 
manner as may be prescribed;  
(c) voluntary contributions or donations; 
(d) income from investments and deposits; 
(e) loans raised subject to approval of the Government or aid 
obtained by the Specialized Medical Institution; 
(f) fees, royalties on publications of the Specialized Medical 
Institution and other charges for services rendered by the 
Specialized Medical Institution; 
(g) grants made by any local or international agency; 
(h) any other money received by the Specialized Medical  Institution 
from any source; and 
(i) grants from any provincial g overnment or by the  Federal 
Government. 
(3) The Fund shall be kept in such custody and shall be utilized and 
regulated in such manner as may be prescribed. 
(4) The Fund account shall be maintained at such Scheduled  Bank or 
Treasury as may be prescribed. 
(5) The Board may authorize two officers or employees of the Specialized 
Medical Institution, one of them shall be Finance Director, to sign cheques, drafts 
and other orders for the payment of money from an account of the Specialized 
Medical Institution as it deems appropriate. 
(6) The Government may provide adequate funds for construction, 
establishing and operation of various facilities of the Specialized Medical Institution 
to perform its functions effectively. 
(7) The Board may, in so far as its money is not required for immediate 
expenses, invest the surplus money in such manner as provided under section 36 of 
the Punjab Public Financial Management Act 2022 (XXXVII of 2022) and rules made 
thereunder. 
(8) The Board shall not invest any money from the Fund in listed securities 
or any derivatives thereof, whether listed or not. 
 
 
24. Budget, audit and accounts. - (1) The operational and development budget 
of a Specialized Medical Institution shall be approved by the Board and its accounts 
shall be maintained and  audited in such manner as may be prescribed by the 
regulations. 
(2) The accounts of the Specialized Medical Institution shall be audited 
every year by the Auditor General of Pakistan. 
(3) The Board shall appoint an internal auditor of the  Specialized Medical 
Institution for pre-audit of expenditures. 
(4) The Dean shall submit annual statement of accounts to the Board and 
the Board may pass such order thereupon as it deems necessary. 
(5) At the closure of each financial year, the Specialized Medical Institu tion 
shall prepare, in the prescribed manner, statements of account for that financial year, 
which shall include a balance sheet and an income and expenditure account. 
(6) The expenditure for which provision has not been made in the 
approved budget shall not be incurred without prior approval from the Board. 
(7) The Chief Minister may order to carry out special audit other than 
routine audit through third party as and when deemed necessary. 
25. Power to make rules. - The Government may, by notification in t he official 
Gazette, make rules for carrying out the purposes of the Act. 
26. Power to frame regulations. - Subject to the provisions of the Act and rules 
made thereunder, the Board may frame regulations, not inconsistent with the 
provisions of the Act, and  the applicable standards for carrying out the purposes of 
the Act. 
27. Removal of Difficulties. - Notwithstanding anything contained in the 
provisions of the Act, the Government may take such measures as deemed fit for the 
purpose of removing difficulties and ensuring effective and efficient healthcare 
management.