CCI rules out unfair trade practices by DGHS

Fair trade regulator CCI has rejected a complaint alleging that Director General of Health Services (DGHS) abused its dominant position to empanel private hospitals for the central government health schemes.
The fair trade regulator also dismissed allegations of anti-competitive practices against Ex-Servicemen Contributory Health Scheme, Quality Council of India and National Accreditation Board for Hospitals and Healthcare Providers (NABH).
DGHS falls under the Ministry of Health Family Welfare.
A complaint filed by a retired Wing Commander Biswanath Prasad Singh had alleged that DGHS was abusing its dominance for empanelment of private hospitals for purpose of healthcare and medical services to Central Government Health Scheme (CGHS) in Delhi-NCR region.

Further, it was alleged that DGHS was unfairly prescribing different rates of reimbursement to the private hospitals based on their accreditation with NABH and the same had been done in collusion with the other entities to give benefit to a selected few hospitals.
In an order dated June 23, the Competition Commission of India (CCI) said that "no prima facie case is made out against the opposite parties ... For making a reference to the Director General for conducting investigation into the matter".

According to CCI, the different rates prescribed by DGHS for NABH accredited hospitals "cannot be considered as anti-competitive in any manner, rather it would act as an incentive to non-accredited hospitals to secure such accreditation and provide quality healthcare services, which will ultimately benefit the patients".

"Hospitals are an integral part of health care system and accreditation would be the single-most important approach for improving the quality of hospitals," it added.
In 2010, DGHS had notified for fresh empanelment of private hospitals and revision of package rates applicable under CGHS in Delhi wherein it prescribed different rates of reimbursement to the private hospitals based on their accreditation with NABH.