Private hospitals write to health ministry over rate standardisation

Better insurance cover would enhance price transparency

The Association of Healthcare Providers (AHPI), which represents medium and private small hospitals, has written to the Union Health Ministry and also decided to approach the Supreme Court, days after the apex court ordered the Centre to fix standardised rates for various medical procedures.

Speaking to Business Standard, Giridhar Gyani, Director General, Association of Healthcare Providers (India), said that a team of representatives has already met Health Secretary Apurva Chandra on Thursday to discuss the issue.

A letter was also submitted to the Union Health Secretary, arguing that there was no scientific study on the cost of procedures.

AHPI recommended chalking out the costing for various procedures based on the established scientific principles and fixing rates in the ‘range’ to address the categorisation of establishments.

He added that their legal team is working on filing an intervention in the SC in a few days so that their views are heard by the apex court.

Viren Shetty, the executive vice-chairman, of Narayana Health, said that while the directions of the apex court are ‘noble in intention and spirit’, they believe that enforcing national standardised pricing for all categories of patients will not improve healthcare provisions in the country.

“The private healthcare industry faces a complex challenge of balancing affordability, quality, and accessibility against growth and financial sustainability. Our national goal should be to ensure that all patients can access the care they need, at a quality that meets their requirements, and at a price that they can afford. A single price for procedures penalizes high quality, reduces patient choice, and forces our best and brightest doctors to leave the country,” Shetty explained.

He said that the solution to providing universal healthcare lies in investing in public healthcare infrastructure and promoting health insurance for those who prefer to get treated at private hospitals.

“It is impossible to expect the average Indian to have access to Rs 2 lakh in hand in case they need emergency surgery, but they can all afford a few thousand rupees in insurance premiums. This would enhance price transparency, accommodate patients from multiple financial backgrounds, align pricing with quality metrics, and give patients their choice of healthcare provider,” he added.

“As a modern economy, India provides the space for multiple healthcare models to co-exist. We cannot turn the clock backward towards a command and control economy with rationed services.”

The AHPI said that in 2014, there was an initiative by the health ministry through the Institute of Cost Accountants of India of which AHPI was a part. But it could not be completed as it is complex due to variables like level of specialisation (primary, secondary, tertiary, and quaternary) and geographical location.

AHPI and the Karnataka government conducted a basic study later.

The industry reckons that if one carries out a study on costs in government hospitals (which are highly subsidised) taking fixed and variable costs, these will not differ from the rates charged in private hospitals.

The apex court on Wednesday rapped the central government for not specifying the range of rates for treatment services by private hospitals and clinical establishments.

It has warned that it will consider issuing 'appropriate directions' in the matter of implementing CGHS rates as an interim measure across private hospitals if the Centre does not come up with a 'concrete proposal' by the next hearing. 

“What makes it even more difficult to standardised all treatment procedures are – the complexity of the case involved, co-morbidities, level of technology/equipment used, services offered, and doctor’s experience. If a middle ground has to be reached, a price range on non-complex procedures looks more probable,” Nuvama added.

Price issues