Centre seeks more time from SC on standardization of hospital rates

The Centre on April 29 submitted its response to the Supreme Court direction to specify standard rates for private hospitals, in consultation with states.

“Many states have suggested that multiple rounds of consultations with stakeholders, including private players and the Indian Medical Association (IMA) may be needed, while some expressed that any rate range fixation may lead to compromise of quality of healthcare, rendering healthcare setups financially unviable”, the government said.

The Union health ministry in response to a Writ Petition seeking standardised healthcare costs, following opposition from doctor and hospital associations challenging Rule 9 of the Clinical Establishment Rules 2012, which allows the Centre to set hospital rates had submitted an affidavit to the Supreme Court.

The affidavit, highlighted the difficulties of establishing uniform rates across a large and diverse country, showing differing approaches observed during a virtual meeting held in March with state representatives.

The Union Health Ministry provided states with a cost template as a baseline, but factors like location, facility type, and healthcare personnel qualifications require individual consideration.

Appearing for hospital industry body Nathealth-Hospital Federation of India, Harish Salve, senior advocate had submitted before the apex court that price fixation of medical services, for all hospitals, across India is not possible as no one size can fit all. “”No mandamus can be issued to the Government in this regard. Price fixation of medical services, for all hospitals, all across India is not possible. No one size can fit all. There is no comparison between a government hospital which receives various subsidies from the government and private hospitals, who are not beneficiaries to any such subsidies. No other service industry in India is price capped as the same is not possible,” Salve said who was representing views of private healthcare sector.

States like Haryana, Telangana, Bihar, Mizoram, Gujarat, and Madhya Pradesh highlighted that any rate range fixation may lead to serious compromises in the quality of healthcare and patient treatment. They also emphasised that fixation of rates may lead to serious issues like rendering healthcare setups financially unviable, and many other players may jack up the prices. It may also render the healthcare sector uncompetitive considering the economic dynamics and interaction of market forces.

Abhay Soi, president, Nathealth in response to the observations made in court yesterday, responded, “Standardising rates of treatment packages may have significant implications on the quality of healthcare services, patient safety, treatment outcomes, sustainability, and the continued investment required to meet unfulfilled infrastructure. The Government’s remarks also highlight these concerns.”

Probal Ghoshal, chairman and director, Ujala Cygnus group of hospitals said that while cost transparency and affordability are crucial, it is important to consider the realities of operating in tier 2 and 3 cities along with metro cities for holistic understanding. “Factors like lower patient volumes, talent acquisition challenges, and maintaining quality standards at a competitive cost need to be factored in. We believe a collaborative approach that acknowledges these regional variations will lead to a sustainable model for both healthcare providers and patients,” he said.

The Supreme Court directed the central government to hold a virtual meeting with health secretaries across states and union territories to explore establishing uniform costs for medical procedures and services. The next hearing is scheduled for September 10.
MB Bureau