On 29th February: The Supreme Court has expressed concerns to the Central Government regarding the significant disparity in healthcare costs between public and private sectors. “If the Union government fails to find a solution, then we will consider the petitioner’s plea for implementing CGHS-prescribed standardised rates,” SC warned.
NEW DELHI: On February 29, the Supreme Court of India addressed the growing gap in medical treatment costs between public and private healthcare facilities, emphasizing the fundamental right of Indians to access healthcare. The Court directed the central government’s obligation to manage healthcare affordability.
The bench, headed by Justice B. R. Gavai and Justice Sandeep Mehta, asked whether the Central Government had efficiently set up uniform treatment rates amidst the COVID-19 crisis. It was further proposed that in scenarios where state governments fail to collaborate on establishing treatment pricing, the central government should leverage its legislative powers to independently set medical procedure fees.
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The disparity in costs for medical treatments such as cataract surgery is expensive, with prices at government hospitals capped at approximately Rs 10,000, whereas private institutions may charge between Rs 30,000 and Rs 1,40,000. This significant difference has drawn the Supreme Court’s attention, prompting a call for more equitable healthcare pricing.
The Court highlighted the issue by pointing to the unimplemented Clinical Establishment (Central Government) Rules established 14 years ago. These rules require setting standardized rates for medical treatments and procedures across different regions, including metros and smaller cities, in consultation with state governments.
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“If the Union government fails to find a solution, then we will consider the petitioner’s plea for implementing CGHS-prescribed standardised rates,” SC warned.
Despite these directions, the central government has pointed fingers at State Governments, citing a lack of response to its communications as a major roadblock to enforcing these standards.
The Supreme Court has responded by ordering the Union Health Secretary to convene a meeting with state counterparts to ensure the establishment of standardized rates within a month.
Background
This matter comes after the ‘Veterans Forum for Transparency in Public Life,‘ through advocate Danish Zubair Khan, filed a Public Interest Litigation (PIL). The PIL demands that the central government determine and enforce standardized fee rates for medical treatments as per Rule 9 of the Clinical Establishment Rules, 2012. These rules directed that all healthcare establishments display their service charges prominently and adhere to the pricing set by the central government in collaboration with state authorities.
Under the Rules, all hospitals and clinical establishments, to keep their registration intact, must “display rates charged for each type of service provided and facilities available for the benefit of patients at a conspicuous place in vernacular as well as in English language; and charge rates for each type of procedure and service within the range of rates determined and issued by the Center from time to time, in consultation with state governments.”
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The petitioner highlighted the effective implementation of standardized treatment rates during the COVID-19 pandemic, arguing for a similar approach to regularize fees for various medical procedures, especially in instances of non-cooperation from state governments.
