Key Takeaways
- The Jan Swasthya Abhiyan and the Working Group on Access to Medicines and Treatment are calling for regulation of private hospital charges and trade margins.
- The Supreme Court is scrutinizing pricing practices in hospital pharmacies and has questioned steep markups on medicines.
- The regulation of private hospital charges and trade margins can have a significant impact on the affordability of healthcare services in India.
What happened
The Jan Swasthya Abhiyan and the Working Group on Access to Medicines and Treatment have called for regulation of charges levied by private hospitals and ceilings on trade margins for medicines, medical devices and medical consumables.
This comes amid renewed scrutiny by the Supreme Court of pricing practices in hospital pharmacies, with the court questioning steep markups on medicines sold through hospital pharmacies.
Why it matters
Patients in India continue to face high and arbitrary charges for treatment, medicines and consumables, with limited avenues to challenge hospital bills.
The problem extends beyond the pricing of individual medicines to the broader question of how private hospitals determine charges for procedures, services and consumables.
By the numbers
- No uniform mechanism to regulate hospital charges across the country
- Multiple medicines, devices and consumables involved in prolonged hospitalisation and procedures
- Steep markups on medicines sold through hospital pharmacies
What it means for you
Patient bills can be hefty, particularly for prolonged hospitalisation and procedures involving multiple medicines, devices and consumables.
The absence of a uniform mechanism to regulate hospital charges has left patients vulnerable to excessive or unjustified bills.
What happens next
The groups are demanding that the Centre and States introduce ceilings on charges levied by private hospitals for procedures, services and treatment.
They are also calling for regulation of trade margins on medicines, medical devices and other medical consumables, as well as a competition-law review of potentially anti-competitive practices.
An independent and time-bound grievance redress mechanism for patients is also being demanded.
Background and context
The Clinical Establishments (Registration and Regulation) Act, 2010 provides a framework for registration and regulation of clinical establishments and envisages standardisation of services and charges.
However, its implementation is not uniform across the country, and several States have their own legislation or regulatory arrangements.
Expert perspective
Abhay Shukla, co-convener of the Jan Swasthya Abhiyan, said that patients often have little bargaining power at healthcare facilities.
K.M. Gopakumar, co-convener of the Working Group on Access to Medicines and Treatment, said that the maximum retail price (MRP) cannot become a licence to charge patients many times the procurement price.
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Implications for readers in India
The regulation of private hospital charges and trade margins can have a significant impact on the affordability of healthcare services in India.
Readers can expect to see changes in the way hospitals charge for services and the prices of medicines and medical devices.
What to watch next
The Supreme Court's decision on the regulation of private hospital charges and trade margins will be closely watched.
The government's response to the demands of the Jan Swasthya Abhiyan and the Working Group on Access to Medicines and Treatment will also be important to watch.
Timeline of events
The Supreme Court's renewed scrutiny of pricing practices in hospital pharmacies began in recent months, with the court questioning steep markups on medicines sold through hospital pharmacies.
The Jan Swasthya Abhiyan and the Working Group on Access to Medicines and Treatment issued a statement on October 5, 2026, calling for regulation of private hospital charges and trade margins.
Key stakeholders
The key stakeholders involved in the regulation of private hospital charges and trade margins include the Supreme Court, the government, private hospitals, and patient advocacy groups.
Each of these stakeholders has a critical role to play in ensuring that healthcare services are affordable and accessible to all.
Frequently Asked Questions
What is the current state of private hospital charges regulation in India?
There is currently no uniform mechanism to regulate hospital charges across the country, leaving patients vulnerable to excessive or unjustified bills.
What are the key demands of the Jan Swasthya Abhiyan and the Working Group on Access to Medicines and Treatment?
The groups are demanding that the Centre and States introduce ceilings on charges levied by private hospitals for procedures, services and treatment, and establish accessible, time-bound mechanisms through which patients can challenge excessive or unjustified bills.
How will the regulation of private hospital charges and trade margins impact healthcare affordability in India?
The regulation of private hospital charges and trade margins can have a significant impact on the affordability of healthcare services in India, making healthcare more accessible to all.
