Price caps on private healthcare may disincentivise capacity creation, innovation: Suneeta Reddy
Apollo Hospitals MD Suneeta Reddy said the company supports the government’s goal of making healthcare affordable and accessible, but cautioned that uniform price controls could discourage private-sector investments in capacity expansion, innovation and healthcare infrastructure.
Apollo Hospitals Managing Director Suneeta Reddy has warned that capping room rents at private hospitals in major cities could discourage investments in capacity creation and innovation. This comes in response to the Parliamentary Standing Committee on Health and Family Welfare's recommendation to limit room costs in large metropolitan areas.
The panel suggested that private hospital room charges should not exceed the average tariff of three-star hotels nearby. Reddy argued that the healthcare industry needs to add 2.4 million high-quality beds in India and promotes a vibrant ecosystem for innovation and research. She emphasized that a uniform pricing approach would not work in the complex healthcare sector.
NATHEALTH, representing India's private healthcare sector, opposed the proposal and suggested that any pricing framework should account for differences in hospital categories, geographies, and care settings. The parliamentary committee's findings show a significant difference in healthcare expenditure between government and private hospitals, with private hospitals charging Rs 50,508 per hospitalization compared to Rs 6,631 in government facilities.
Written by urgent.news from ETHealthworld's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
