CHENNAI: In a bid to enhance the quality of care in government health facilities, the Tamil Nadu government has approved the establishment of the Tamil Nadu Health Foundation, a not-for-profit entity aimed at mobilising community support and streamlining fund utilisation.

The foundation will be constituted as a Section 8 company under the Companies Act, 2013, with a lean governance structure, a transparent fund flow mechanism, and strong oversight.

The move is intended to improve collaboration between public and private sectors, and to channel philanthropic and corporate contributions towards strengthening healthcare services and infrastructure across the State.

According to the Government Order dated August 1, issued by Principal Secretary of the Health and Family Welfare department, P Senthilkumar, the foundation will serve as an institutional platform to receive and utilise donations from corporates, alumni, individual donors, and other stakeholders.

At present, such contributions are received by individual health institutions, often without independent auditing or accountability mechanisms. The new foundation seeks to address this gap by ensuring transparency and operational flexibility.

The foundation will launch a large-scale campaign to mobilise support and establish district- and State-level committees for administration. It will also adopt digital tools for governance and fund tracking. The initiative received the approval of the State Empowered Committee before being formally cleared by the government.

The Project Director of the Tamil Nadu Health Systems Project has been authorised to proceed with forming the company, applying for tax exemptions under Sections 12AA and 80G of the Income Tax Act, and submitting the Memorandum and Articles of Association for government approval. The board of directors will include senior government officials and experts, following statutory requirements.