Lok Sabha Question No. 686 (UNSTARRED), answered on 2018-07-20
Subject: Exorbitant Charges in Hospitals
Ministry: HEALTH AND FAMILY WELFARE
Asked by: RAJAN BABURAO  VICHARE, SANJAY HARIBHAU JADHAV, T.G. VENKATESH BABU

## GOVERNMENT OF INDIA MINISTRY OF HEALTH AND FAMILY WELFARE DEPARTMENT OF HEALTH AND FAMILY WELFARE

## LOK SABHA UNSTARRED QUESTION NO. 686 TO BE ANSWERED ON 20 th JULY, 2018

## EXORBITANT CHARGES I N HOSPITALS

## 686. SHRI RAJAN VICHARE: SHRI SANJAY HARIBHAU JADHAV: SHRI VENKATESH BABU T.G.:

Will the Minister of HEALTH AND FAMILY WELFARE be pleased to state:

- (a) whether the Government has noticed that private hospitals charge patients exorbitantly and supply medicine only from their in - house pharmacies, if so,the details thereof;
- (b) whether the Government has initiated any action against such hospitals and f so, the details thereof;
- (c) whether the Government is con idering to take any specific steps to check arbitrariness of the hospitals and the p armacy companies and if so, the details thereof; and
- (d) the steps already taken/being taken by the Government to regulate such practices?

## ANSWER THE MINISTER OF STATE IN THE MINISTRY OF HEALTH AND FAMILY WELFARE (SMT. ANUPRIYA PATEL )

- (a): Yes. Based  on  complaints  and  media  reports  on  overpricing  and  inflated  bills  to patients by some hospitals, National Pharmaceutical Pricing Authority (NPPA) had asked for details  of  billing  from  these  hospitals  under  the  provisions  of  Drugs  (Prices  Control) Order, 2013 (DPCO, 2013). Based on the data submitted by the hospitals, NPPA has noticed that th is a gap between the procurement prices of drugs and amounts at which the drugs are bil the patients.

As per the detailed bills submitted by the hospitals, NPPA had noticed that most of the drugs,  devices  and  disposables  were  used  and  sold  by  the  hospitals  from  their  own  in - house pharmacies. Study reports prepared on the basis of information submitted by these hospi available under the 'What's New' link of website of NPPA. ( www.nppaindia.nic.in ).

- (b):Since Health is a State subject, it is for the respective State/UT Government to tak against  the  private  hospitals under  the  appropriate  sta tutory  provisions  applicable  in  the State/UT.

(c)& (d) : The  Department  of  Pharmaceuticals  has,  keeping  in  view  the  reports  tha pharmaceutical  companies  indulge  in  unfair  practices,  formulated  the  'Uniform  Code  for Pharmaceutical  Marketing  Practices (UCPMP)'.  It  has  come  into  operation  with  effect  from 01.01.2015.

Also, the Government of India has enacted Clinical Establishments (Registration Regulation) Act, 2010 for registration and regulation of all clinical establishments in the c untry (both Government and Private) with a view to prescribing the minimum standards of facil and services provided by them. Currently, the Act is applicable only in eleven (11) States and Union Territories except Delhi. Other States may adopt the Act under clause (1) of Article 252 of the Constitution.

In terms of the Clinical Establishments (Central Government) Rules, 2012 notif under this Act, the clinical establishments are required to follow Standard Treatment Gu as may be i ssued by Central/State Governments, display their rates at a conspicuous place charge the rates for each type of procedures and services within the range of rates de from time to time in consultation with the State Governments. The National Cou ncil for Clinical Establishments has pproved a standard list of medical procedures and a standard template costing  of  medical  procedures  which has  been  shared  with  the  States/UTs  where  the  Act  is applicable for taking appropriate action by them.  The implementation and enforcement of the said Act falls within the remit of the States/Union territories.