Several states have raised concerns about the central government’s attempt to set standardised healthcare service rates nationwide, as per an affidavit submitted by the union health ministry to the Supreme Court on Monday.
The affidavit was filed in response to a Writ Petition seeking standardised healthcare costs, following opposition from doctor and hospital associations challenging Rule 9 of the Clinical Establishment Rules 2012, which allows the Centre to set hospital rates.
The affidavit, reviewed by Business Today, highlighted the difficulties of establishing uniform rates across a large and diverse country, showing differing approaches observed during a virtual meeting held in March with state representatives.
States following the Clinical Establishments (Registration and Regulation) Act, 2010 (CERAR) expressed willingness to collaborate with the union health ministry. States like Haryana, Telangana, Bihar, Mizoram, Gujarat, and Madhya Pradesh highlighted that any rate range fixation may lead to serious compromises in the quality of healthcare and patient treatment.
They also emphasised that fixation of rates may lead to serious issues like rendering healthcare setups financially unviable, and many other players may jack up the prices. It may also render the healthcare sector uncompetitive considering the economic dynamics and interaction of market forces.
As per the affidavit, this exercise needs to be carried out by holding consultations with all stakeholders, including private players in the States and UT concerned, as a one-size-fits-all approach may not be feasible. This would require additional time to initiate the exercise and proceed further, as it would be both manpower-intensive and time-intensive, the states said.
The Union Health Ministry provided states with a cost template as a baseline, but factors like location, facility type, and healthcare personnel qualifications require individual consideration.
Anita Bilung, Under Secretary at the Ministry of Health and Family Welfare, led the proceedings following the apex court’s guidelines to ensure transparency in public healthcare costs through a virtual meeting on March 19, 2024.
Following a multilateral consultation, significant progress has been made in determining a standardised range of rates for healthcare services nationwide. The meeting, held on March 19, 2024, saw active participation from various states and UTs, aligning with the Supreme Court’s directives focused on establishing uniform charges for treatments across the country.
The creation of a Template of Costing of Procedures by the Clinical Establishment Act Division under the Ministry of Health and Family Welfare, approved by the National Council for Clinical Establishments (NCCE), serves as a foundational framework for calculating rates, considering local factors such as facility type, personnel qualifications, and specific healthcare services.
The Supreme Court directed the central government to hold a virtual meeting with health secretaries across states and union territories to explore establishing uniform costs for medical procedures and services. The next hearing is scheduled for September 10.
