JSA, working group seek cap on hospital charges, medicine margins

The Jan Swasthya Abhiyan (JSA) and the Working Group on Access to Medicines and Treatment (Working Group) have urged the government to intervene and set limits on hospital charges, warning that patients are facing excessive and arbitrary fees for treatment, medicines, and medical supplies with limited protection or recourse. This demand comes as the Supreme Court has questioned excessive mark-ups on medicines sold through hospital pharmacies, as well as the practice of forcing patients to purchase medicines from hospital-linked pharmacies.

Dr. Abhay Shukla, co-convener of JSA, noted that while private healthcare in India has grown rapidly, regulation has fallen behind, leaving patients with little bargaining power over the charges they face. He highlighted that leading corporate hospital chains are earning significant profits, with estimates ranging from Rs 22 lakh to Rs 55 lakh annually per bed.

To address this issue, experts advocate for a comprehensive nationwide system to regulate healthcare costs, particularly for private hospitals. Currently, the Clinical Establishations Act of 2010 (CEA) provides a legal framework for regulating clinical establishments, but its implementation has been lacking. The Working Group has suggested that the pharmaceutical drug controller at the state level could issue orders requiring hospitals to disclose their procurement prices alongside the selling price for medical consumables.

This would increase transparency and allow patients to make informed decisions about their healthcare costs. Additionally, the Working Group proposes that the Clinical Establishations Act could be amended to limit the markup on medicines and consumables to no more than 30 percent over the procurement price. This regulation could help bring down hospital bills and ensure that patients are not overcharged for essential medical products.