Private hospitals

It is heartening to note that the Government of India is contemplating finding a device to cap the inflated medical costs in private hospitals and nursing homes. There are numerous allegations that, apart from producing inflated charges in medical treatment, private hospitals and nursing homes also charge higher costs in comparison to market rates for various equipment like syringes, cannulas, gloves, pacemakers, etc., which they force patients to buy from their in-house stores. The rapid commercialisation of healthcare in India has turned many private hospitals into profit-maximizing centers, often at the cost of ethical medical practices and patient safety. With roughly 60–70% of healthcare services delivered by the private sector, the lack of robust central regulation has led to exorbitant overcharging, unnecessary diagnostics, and unethical practices, compelling millions into poverty annually. The union government must now move beyond policy guidelines and enforce stringent regulations to bring private healthcare under effective oversight. A primary area needing regulation is price transparency and standard treatment protocols. Studies conducted during the COVID-19 pandemic revealed that over 82% of hospitalised patients faced overcharging, with some bills exceeding expectations by 400% to 500%. Private hospitals have been known to exploit patients by charging exorbitant markups on drugs and consumables (sometimes over 1700% on items like consumables). The Supreme Court has criticized the government for failing to enforce the 2012 Clinical Establishment Rules, which mandate that hospitals maintain transparent pricing and charge reasonable rates. Given the situation, the central government must enforce the Clinical Establishments (Registration and Regulation) Act of 2010 across all states. The central government can harmonise these regulations to avoid a “regulatory hiatus” where hospitals take advantage of local loopholes, even though “health” is technically a state subject. A key measure is to make the standardization of core procedure costs mandatory, while also implementing standard, itemised billing formats to end practices like overcharging for consumables or detaining bodies over unpaid dues. Furthermore, regulating the nexus among corporate hospitals, diagnostic centres, and pharmaceutical companies is essential. Unethical practices, such as “cut practice” (commissions for referrals), increase the financial burden on patients without improving treatment quality. The National Pharmaceutical Pricing Authority (NPPA) can enhance accountability through stricter monitoring of device margins and drug prices, along with mandatory patient rights charters in local languages.