Delhi: Kejriwal govt set to cap profit margins of private hospitals by 50%

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Delhi government would become the first state in India to cap profit margins of private hospitals. The government has prepared a draft, which will be open to suggestions and objection for 30 days. The move to curb the profit margin came after the public outrage over the death of a child due to dengue and hospital billing the family over 15 lakh for treatment

  • The Delhi government has come out with a draft advisory to cap profit margins of the private hospitals.
  • The draft is kept open for public suggestions and objections for the period of 30 days.
  • After completion of 30 days, the draft will be implemented will be applicable to all private hospitals and nursing centers.

With an aim to make healthcare affordable to all, Delhi’s Arvind Kejriwal-led government is all set to cap the profit margins of the private hospitals by 50 percent. The state health minister, Satyendra Jain presented the draft advisory in Delhi today.

The National Pharmaceutical Pricing Authority (NPPA) also raised the question of overcharging by private hospitals. The NPPA, in its investigation, has found that the hospital was charging a whopping 1700% more than the actual cost of the drugs and consumables.

As per the draft,

The private hospital will be directed to prescribe NLEM drugs. A patient must be counseled before giving any other drug.

Drugs covered under the National List of Essential Medicines will be sold on MRP.

Drugs/Consumables

The clinical establishment shall bill a non-NLEM drugs/disposables at their respective procurement prices + maximum up to 50 percent as mark up against the administrative/handling charges or MRP, whichever is lesser.

Implants

The clinical establishment shall bill a non-NLEM drugs/disposables at their respective procurement prices + maximum up to 35 percent as mark up against administrative/handling charges or MRP, whichever is lesser.

A sub-committee has been constituted to cap the prices that are to be charged by the private hospitals.

The private hospitals cannot compel patients to buy medicines from the hospital.

While speaking to press, Satyendra Jain, said, “If a patient has undergone a first surgery and it requires them to undergo a second surgery, in that case, the second procedure cost will be charged at 50 per cent of its original rate. Private hospitals can give high-risk packages to the patients. High-risk package cost will not be more than 20% higher than the actual cost. So, even if the total cost goes much more than, the patient should be charged only for the package cost.”

In order to curb the cut commission practice, the Delhi government has directed the private hospitals and nursing homes not to give cut commission. In case if the payment is more than Rs 20,000, in the year, it has to be taken through proper banking channels.

The said draft notification has been kept open for the period of 30 days. The doctors and the general public can give their suggestions and objections, after which it will be implemented.

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