HC refuses to stay fine of Rs 17.86 cr on Dharamshila Hospital

Delhi High Court today refused to grant an interim stay on AAP government's order imposing fine of Rs 17.86 crore on Dharamshila Cancer Hospital for allegedly not providing free treatment to poor patients as per its land allotment lease condition, saying the hospital will have to first deposit some of the amount.
Justice Sanjeev Sachdeva asked the lawyer appearing for the hospital to take instructions on whether it was willing to deposit some amount and listed the matter for hearing on July 21.
"If you are seeking stay, deposit some money," the judge said and added "If there was no stay, then you (hospital) will have to comply with the recovery order. Take instructions."

A special committee, appointed to look into the affairs of the hospitals as per a High Court order of 2007, had imposed a fine of over Rs 32 crore on Max Super Specialty Hospital (Saket), Rs 36.30 on Shanti Mukand Hospital, Rs 10.6 on Pushpawati Singhania Research Institute and over Rs 100 crore on Fortis Escorts Heart Institute.
The hospitals were directed by the AAP government to deposit the "unwarranted profits" got out of allegedly refusing free treatment to the poor.
During the hearing, the lawyer appearing for Dharamshila hospital contended that the decision to recover the amount was taken by the special committee prior to giving it a hearing.

The lawyer argued the hospital has partially complied with the High Court's 2007 direction to provide free treatment to poor patients, as 10 per cent beds were reserved for them.

The Delhi government, on the other hand, disputed the claims saying there was no partial compliance as the hospital was charging patients for medicines and other disposables and thus, no free treatment was being provided.
To this, the hospital said that cancer medication is very expensive and this cannot be provided free to patients, adding it was charging discounted rates for drugs and disposables.
Earlier, the court had refused to grant immediate relief

to Fortis Escorts Heart Institute saying it would have to deposit some amount on an "ad-hoc basis" if it wished to insist on a stay on the government's order.
The plea of Fortis against the government order is listed for hearing tomorrow.
Dharamshila hospital has moved court seeking stay on AAP government's decision, claiming they were not given proper hearing by the health department before issuing the show cause notice.
It has also said that the department should explain how it had arrived at the figure.
The health department had earlier told the court that the hospitals were provided land at concessional rates between 1960 and 1990on the condition that they will treat the poor free of cost, but they did not abide by it.

"The penalty has been imposed on the basis of a High Court order passed in 2007 on a PIL demanding implementation of the provision of free treatment to poor and action against the erring hospitals. And the fine amount has been calculated accordingly," the government had said.
43 private hospitals in Delhi were allotted land at concessional rates on condition that they will keep 10 per cent of their in-patient department capacity and 25 per cent of out-patient department capacity to treat economically weaker section patients free of cost.