The Supreme Court has urged State governments to frame policies to prevent private hospitals from overcharging patients, emphasizing the need for a balanced approach that protects patients while not stifling private sector growth.
A Bench comprising Justices Surya Kant and N Kotishwar Singh stated that issuing mandatory directions on this matter could “hamper the growth of hospitals in the private sector.” Instead, the Court underscored that “policy-makers are the best equipped to take a holistic view and formulate the guidelines as may be required, to safeguard the patients or their attendants from exploitation while simultaneously, ensuring that there is no discouragement and unreasonable restriction on private entities from entering the health sector.”
The ruling came in response to a Public Interest Litigation (PIL) filed by Siddharth Dalmia and another petitioner, who alleged that private hospitals compel patients to purchase medicines and medical supplies at exorbitant rates from in-house pharmacies. The petitioners argued that this practice amounted to economic exploitation and violated the right to health under Article 21 of the Constitution of India.
Acknowledging the importance of private healthcare, the Court noted that due to India’s vast population, States have struggled to build adequate medical infrastructure. As a result, private hospitals have played a crucial role in healthcare delivery.
“It, therefore, must be acknowledged that not only the people, even the States look towards these private entities to provide basic and specialized medical facilities to the public at large,” the Court remarked.
While recognizing the grievances of patients, the Court concluded that such issues are best handled by State policies rather than judicial mandates. It, therefore, directed all State governments to take appropriate policy decisions on the matter.
“It may not be advisable for this Court to issue mandatory directions which may hamper the growth of hospitals in the private sector; but parallelly, it is necessary to sensitize the State Governments re: the problem of unreasonable charges and exploitation of patients in private hospitals,” the Court stated in its ruling.
With this decision, the onus is now on State governments to formulate policies that curb overpricing while ensuring the continued growth of private healthcare institutions.
Case: Siddharth Dalmia & Anr. vs Union of India & Ors. – Available on LAWFYI.IO
