Employees’ State Insurance Act, 1948
59. Establishment and maintenance of hospitals, etc. by Corporation
(1) The Corporation may, with the approval of the State Government, establish and maintain in a State such hospitals, dispensaries and other medical and surgical services as it may think fit for the benefit of insured persons and (where such medical benefit is extended to their families) their families.
(2) The Corporation may enter into agreement with any 63[* * * ] local authority, private body or individual in regard to the provision of medical treatment and attendance for insured persons and (where such medical benefit is extended to their families) their families, in any area and sharing the cost thereof.