Chief Minister Naveen Patnaik announced this while reviewing the annual performance of the health and family welfare department.
"The health university should be established in the state to streamline the medical education system," an official release said quoting Patnaik.
Health and family welfare minister Atanu S Nayak said work for five more medical colleges would start soon and they would add to the existing three state-run medical colleges.
Plans were being drawn up to set up 30 low-cost good hospitals under PPP mode, he said.
While reviewing the performance of the department, Patnaik asked the officials to ensure that the needy and poor people were not denied benefits under different health insurance schemes, the release added.