Madras High Court Suggests Cap On Private Hospital Rates For COVID Treatment

The Madras High Court sugegested bringing in a cap on treatment rates charged by private hospitals in the state of Tamil Nadu. 

Chief Justice Sanjib Banerjee proposed the measure today in the course of dealing with a petition seeking free Covid treatment at all private nursing homes, polyclinics and hospitals in the State of Tamil Nadu, which was heard by a bench comprising of himself and Justice Senthilkumar Ramamoorthy. 

Pointing out that there were press and media reports about exorbitant rates being charged by private hospitals, the Court directed the State Government to examine the issue. While issuing this direction, the Court also suggested caps that could be placed on rates charged on the basis of services rendered, so that a person was not ruined "simply because he is saving his life…"

"There are reports in the media about exorbitant charges being obtained by private hospitals. This aspect of the matter needs to be looked into by the State and some kind of cap put, based on the extent of services rendered, so that an ordinary citizen unable to obtain a bed at any government medical facility is not financially ruined only in trying to save his life by obtaining admission at a private hospital," the Court states in its order.

At the last hearing, Chief Justice Banerjee had orally remarked that the issue of exorbitant rates being charged, "is a subject of great concern". On that occasion, the Court had drawn attention to how various states, whether directly or through another body, had capped treatment rates.

When the matter was taken up on Tuesday, Advocate General R Shanmugasundaram informed the Chief Justice-led Bench that there is a state-wide insurance scheme in place at Government Hospitals, the Chief Minister's Comprehensive Health Insurance Scheme. Responding to the State's stance, the Court asked whether everyone would be entitled to avail of the scheme, whether they be pavement dwellers or rickshaw pullers..

In its Order, the Court makes reference to an affidavit by the health secretary, and records that the State's affidavit indicated that 1.58 Crore families were covered by the Chief Minister's Comprehensive Health Insurance Scheme which covered whose persons whose annual income is less than Rs.72,000/ per annum. Government servants and retired health workers were covered by a Group Health Insurance scheme.

The Court in its order observed that the thrust of the petition did not relate to persons who were within the cover of the State's Insurance Scheme, but those who were not covered by any scheme and could not get a government bed despite best efforts.

Therefore, the Chief Justice suggested that caps be set in place so that people who had to utilise facilities in private hospitals were not financially ruined by treatment expenditure.

The Madras High Court has expressed concern about rates of Covid medication dispensed at private healthcare institutions previously as well. At a previous hearing of petitions relating to Covid, the Chief Justice-led Bench had expressed concern over overcharging and directed the State to impose a 'check on prices charged', since 'massive bills' generated was one of the difficulties faced by citizens.