The Supreme Court on Monday agreed to hear a plea by an association of doctors and hospitals that questioned the government’s move to prescribe rates for all hospitals. The matter is slated for hearing on September 10.
In response to a public interest litigation filed by an NGO, the apex court had directed the Central government to come up with a concrete proposal specifying standard rates, in consultation with states. The court had warned of applying Central Government Health Scheme rates for treatment services at private facilities until standardised rates were set.
The order has led to widespread panic among private hospitals and investors, since standardisation of rates could substantially affect the revenue and commercial viability of hospital operations. Subsequently, healthcare providers wrote to the health ministry and the court, raising their concerns.
During the discussions held by the central government, while some states called for more consultations, others expressed concerns that fixing rates may compromise quality of healthcare and make healthcare setups not viable.
The government in its affidavit said states and UTs that were part of the Clinical Establishments Act, 2010 have shown willingness for discussions with stakeholders and invited the guidance and collaboration of the union health ministry to speed up the process.States like Haryana, Bihar, Telangana, and Mizoram said multiple rounds of wider consultations with all the stakeholders including private players may be needed – as a one-size-fits-all approach may not be feasible. Gujarat and Madhya Pradesh expressed that any rate range fixation may lead to serious compromise of quality of healthcare or patient treatment.Uttar Pradesh emphasised that fixing the rates may lead to serious issues like rendering healthcare setups financially unviable and that many other players may jack up their prices.
According to Uttarakhand, it may also render the healthcare sector uncompetitive, considering the economic dynamics and interaction of market forces.
