Treatment at private hospitals to get cheaper? Health ministry mulls cap on billing, says report

PRivate hospitals ar below the Centre’s image scanner due to overcharging amid growing concerns on the rising be of common soldier healthcare. The government is considering ways to curb the medical costs, including potentially putting a cap on trade margins on a variety of medical devices, reported CNBC TV18.The health ministry is reviewing a proposal to cap the margins that hospitals can charge on a broad range of medical devices, CNBC Awaaz reported citing sources. This comes amid mounting scrutiny on alleged overbilling by private hospitals.Under the framework that the government is reviewing, the hospitals will reportedly not be allowed to bill beyond a fixed margin over the cost or landing price of medical devices, the report said.Also read: EC takes ‘serious note’ of Kharge's ‘terrorist’ remark on PM Modi, issues notice to Congress chiefIn order to determine how such a limit can be implemented, in a bid to reduce financial burden on patients, the government is reportedly in discussions with stakeholders including insurance firms and representatives of the medical device industry.Such a cap may be put on both low-cost everyday use devices such as syringes, cannulas and gloves, and also on more costly devices including pacemakers, heart valves and more, the report said.Also read: India amends ATF rules, allows ethanol blending in aviation fuelHospitals charging exorbitant fees?According to investigations, hospitals sometimes charge as much as 10 to 30 times the real cost of some medical equipment. The report by CNBC Awaaz cited some examples, saying that a ₹3 syringe may be billed at ₹30, or an IV cannula that costs around ₹6 could be charged at ₹120.Also read: Centre notifies rules to regulate online gaming. Here is what changes from May 1The same pattern can also be observed in high-value devices, as pacemakers, which cost around ₹25,000, are reportedly billed at ₹2 lakh, and heart valves, which are imported, are billed as high as ₹26-30 lakhs, while their actual cost is ₹4 lakh, the report said.The limit on the hospital billing also aims to enhance transparency in the healthcare industry and decrease pressure on the patient’s pockets and also on insurance premiums.Health insurance industry takes a hit by hospital billsThe rising costs of treatment in hospitals has also impacted the health insurance industry, as insurance premiums may increase by 10-15% over the next year and a half or so, as the medical inflation rises with the annual rate of 14-15% annually, as reported by CNBC-TV18.Among the key factors affecting the healthcare insurance costs are rising hospital charges, advanced treatments and higher claims frequency, according to experts.