Delhi private hospitals will be allowed only 50 percent profit margin: Health Minister

New Delhi: The Delhi government on Monday proposed that the private hospitals in Delhi will be allowed only up to a 50% profit margin over the procurement price of medicines and other consumables.

“We are changing the rules by which private hospital can’t sell medicines for not more than Purchase Price +50% Margin and whosoever will not follow this direction will be penalized heavily.” – @SatyendarJain pic.twitter.com/olHcQKXN0n

— AAP (@AamAadmiParty) May 28, 2018

Health Minister Satyendra Jain said the government would be putting a draft advisory in the public domain for 30 days, seeking comments and objections.” The government would notify the advisory and amend the Delhi Nursing Homes Act in order to introduce punitive measures, including cancellation of licence, for those who don’t follow the advisory,” added Jain.

“No hospital will be allowed to charge arbitrary charges to patients like donations or billing charges. It will be strictly prohibited in all hospitals” – @SatyendarJain pic.twitter.com/xjhaXxpS2F

— AAP (@AamAadmiParty) May 28, 2018

According to the member of the draft advisory,”The hospitals and nursing homes would have to cap their mark-ups on medicines and consumables that are not in the National List of Essential Medicines at 50% of the procurement prices or charge the maximum retail price, whichever is lowest. For implants, the cap proposed was 35% of the procurement price.”

“A 50% of the total bill will be waived off if a patient dies within six hours of being admitted to a hospital’s emergency or casualty wards, While if a patient dies within 24 hours of admission, then 20% of the bill should be proposed,” said Jain.

Mr. Jain added that to ensure the ‘dignity of the dead’, that hospitals would not be allowed to refuse to release a deceased patient’s body if the bill has not been paid.