‘Wise minds will think otherwise’: Abhay Soi on private hospital price cap

Abhay Soi, chairman of Max Healthcare, suggests that private hospital room rents should not be subject to a blanket price cap, as affordability must be balanced against the necessity of new hospital beds. During a recent earnings call, Soi argued that the Parliamentary Standing Committee on Health and Family Welfare's recommendation to cap basic room charges at private hospitals in major cities at the average tariff of three-star hotel rooms is a complex issue.

He emphasized that the committee's focus on affordability should also consider the need for new hospital beds and the viability of hospitals. Soi stated that wise minds would reconsider the blanket price cap once this equation is taken into account. He further clarified that the healthcare provider is not reconsidering its expansion plans despite the proposed price caps, as they believe they will offer superior returns compared to other investment opportunities.

Soi highlighted that admission decisions should be made jointly by doctors and insurance companies, not hospitals, and that the new clinical guidelines from the General Insurance Council (GIC) should be seen as a guideline rather than a strict rule.