Supreme Court Asks Union & Delhi Govts To Inquire If Indraprastha Apollo Hospital Provided Free Treatment To Poor In Last 5 Years

Following an allegation against the Indraprastha Apollo Hospital that it is not providing free treatment to poor patients as part of its obligations under a government land lease, the Supreme Court recently called for a joint inspection of the hospital records by the Delhi government and Union of India to ascertain inter-alia how many poor patients were treated at the hospital in the last 5 years.

A bench of Justices Surya Kant and N Kotiswar Singh passed the order, asking the joint Committee of the Delhi government and the Union to file a report on the following:

"(i) Whether the lease deed, on expiry of the lease period, has been renewed? If so, on what terms and conditions?

(ii) If the lease period has not been renewed and extended, what lawful recourse has been initiated to restore the Government land?

(iii) A team of experts be deputed to count the total bed strength in the hospital and the records of the outdoor patients footfall of at least the past 5 years.

(iv) The affidavit will further explain how many poor patients, on the recommendations of the State Authorities, have been provided indoor treatment or have been treated as outdoor patients during at least the last 5 years."

Directing the hospital to cooperate fully with the Committee, the Court gave liberty to its management as well to file a status report on the above aspects.

Briefly put, in 1994, a land measuring 15 acres in Delhi's Sarita Vihar was given on lease to Indraprastha Medical Corporation Ltd. and its associated entities at a symbolic amount of Rs.1 per month. Among the shareholders was Delhi government with 26% shares. As per the clauses of the lease deed, the Hospital was under an obligation to provide free treatment to poor patients to the extent of 1/3rd of the bed strength and 40% of its outdoor patients.

Pursuant to the lease, the Apollo Group constructed a hospital on the land (the Indraprastha Apollo Hospital) and as per clauses of the lease, the hospital was obligated to provide free treatment to poor patients to the extent of 1/3rd of its bed strength and 40% of its outdoor patients.

When the hospital allegedly failed to fulfill its obligations, the All India Lawyers Union (Delhi Unit) initiated a public interest litigation before the Delhi High Court. The management took a stand that the hospital was a commercial venture. In 2009, the High Court noted that there was non-compliance with the obligations to provide free treatment to indoor and outdoor patients and issued certain directions to ensure provision of health care services for poor people in the subject hospital.

The High Court order was challenged by the hospital management before the Supreme Court. In 2009, the Court passed certain directions for provision of treatment to poor patients. However, the same appearing to not have been provided, and noting that the 30-year lease of 1994 would have by now expired, the Court recently passed an order calling for a report from the Delhi government and the Union.

Notably, the bench of Justices Kant and Singh also orally warned the hospital during the hearing that if does not provide free treatment to poor patients as part of its lease obligations, its management would be handed over to All India Institute of Medical Sciences (AIIMS). Further, it was lamented that the hospital, which was to run on a no-profit, no-loss formula, turned into a commercial venture where poor patients could not afford treatment.

When the counsel appearing for IMCL apprised the bench that Delhi government, having 26% shares, also profited from the earnings, Justice Kant remarked that it was "most unfortunate".

Case Title: INDRAPRASTHA MEDICAL CORPORATION LTD. THR. M.D. vs. ALL INDIA LAWYERS UNION .(DELHI UNIT), SLP(C) No.29482/2009

Click here to read the order