Hospitals ‘overcharging’ is a malpractice: Govt to Supreme Court
The Indian government has acknowledged in the Supreme Court that hospitals are engaging in malpractice by overcharging patients for medicines and consumables. Officials are currently working on regulatory interventions to address the significant bargaining asymmetry between patients and healthcare providers.
Why it matters
This addresses systemic healthcare affordability issues in India, highlighting the conflict between market competition and patient protection.
NEW DELHI: Govt has admitted before Supreme Court the “malpractice” of hospitals charging patients high MRPs for medicines and consumables, and said it was conscious of the problem, examining it and devising appropriate interventions in consultation with all stakeholders.In an affidavit filed in SC on the issue of capping prices of all medicines and medical consumables, chemicals and fertilisers ministry said that patients have a very low bargaining position with respect to hospitals, resulting in various malpractices. The affidavit noted the irony of India being home to companies making cheap drugs but patients here having to pay way above the manufacturing price, as well as patients being subjected to overcharging by hospitals.“The Indian drug market is fairly competitive, with a large number of pharmaceutical companies in every drug segment, resulting in one of the lowest prices in the world.
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