GUWAHATI: The Supreme Court recently urged state governments to formulate policies that will curb unreasonable charges and the exploitation of patients in private hospitals. The court’s directive came while disposing of a Public Interest Litigation (PIL) in Siddharth Dalmia & Anr. vs. Union of India & Ors.
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A bench of Justices Surya Kant and N. Kotishwar Singh stated that issuing mandatory directions on this issue may not be advisable, as it could hinder the growth of private hospitals. But the court emphasised that policy decisions should be made by the states to ensure the balance between protecting patients from exploitation and encouraging private investment in healthcare remains.
The court noted in particular that policymakers are best positioned to take a comprehensive approach and create guidelines that safeguard patients while allowing private hospitals to operate without unreasonable restrictions. Therefore, it directed all state governments to consider this issue and make appropriate policy decisions.
The PIL was filed to restrain private hospitals from compelling patients to purchase medicines and medical supplies exclusively from in-house pharmacies at allegedly inflated prices. The petitioners argued that private hospitals systematically overcharge patients by enforcing such practices, leading to economic exploitation and a violation of the right to health under Article 21 of the Constitution.
The case stemmed from the personal experience of the petitioners, whose family members had to pay exorbitant charges for medicines during cancer treatment. They contended that the absence of regulatory mechanisms had enabled private hospitals to impose unreasonable fees.
The court acknowledged that providing medical facilities is integral to the right to life under Article 21. However, it also noted that given the challenges in building sufficient public healthcare infrastructure, the government has encouraged private sector participation, leading to the rise of renowned private hospitals in India.
This development refrained the court from issuing directives that could adversely affect the growth of private healthcare institutions.