Healthcare Industry Welcomes Consultations on Standardized Rates
The healthcare industry has expressed its support for the Indian government's initiative to hold wider consultations with stakeholders on determining standardized healthcare service rates. This move comes after the Supreme Court's directive in February 2024, instructing the government to specify standard rates for private hospitals in consultation with states.
The apex court had also cautioned against applying Central Government Health Scheme (CGHS) rates for treatment services at private healthcare facilities until standardized rates are established. In response, the government acknowledged the need for consultations with all stakeholders, including private players in states and union territories, as a one-size-fits-all approach may not be feasible.
Probal Ghoshal, chairman and director of Ujala Cygnus group of hospitals, emphasized the importance of considering the realities of operating in different cities while determining standard rates. He highlighted factors such as lower patient volumes, talent acquisition challenges, and maintaining quality standards at a competitive cost. Ghoshal believes a collaborative approach that acknowledges regional variations will lead to a sustainable model for both healthcare providers and patients.
Industry bodies like Nathealth-Hospital Federation of India also welcomed the opportunity to voice their concerns. Senior advocate Harish Salve, representing the body, argued that price fixation of medical services for all hospitals across India is not feasible due to the diverse nature of healthcare facilities. He pointed out that government hospitals receive subsidies, unlike private hospitals, and that no other service industry in India operates under price caps.
The government acknowledged concerns raised by states that rate fixation could lead to financial unviability and hinder the competitiveness of the healthcare sector. Abhay Soi, president of Nathealth, expressed appreciation for the government's recognition that standardizing treatment package rates could have significant implications on healthcare quality, patient safety, and sustainability. He believes the government's remarks highlight these concerns effectively.
The healthcare industry's support for wider consultations demonstrates a commitment to finding a solution that balances affordability and quality of care. The government's willingness to engage with stakeholders suggests a collaborative approach towards establishing standardized healthcare service rates that benefit both patients and healthcare providers.