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CMA Intermediate · Business Laws and Ethics · Employees State Insurance Act, 1948

As per Section 73A of the ESI Act, 1948, an 'underutilised hospital' means:

An underutilised hospital is any hospital that is not fully utilised by the persons insured under the ESI Act. Spare capacity is what matters, so it need not be small, unused or closed. The definition in Section 73A(c) contains no bed-count or closure condition.

  1. AAny hospital not fully utilised by the persons insured under the ActCorrect
  2. BAny hospital run by a State Government with fewer than fifty beds
  3. CAny hospital where no insured person has ever been treated
  4. DAny hospital closed by the Corporation for lack of funds

Explanation

Section 73A(c) defines an underutilised hospital as one not fully utilised by insured persons. The other options add conditions (bed count, zero use, closure) that the definition does not contain.

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