Rising hospitalisation costs remain a major challenge for people in India, with high out-of-pocket expenses putting increasing pressure on families. To make healthcare more affordable and accessible, the Parliamentary Standing Committee on Health and Family Welfare has recommended several measures, including a cap on private hospital room charges.
The panel has suggested that room rates in private hospitals should be capped at around the cost of a three-star hotel room in the same area.
The committee tabled its report, titled “Affordability and Accessibility of Healthcare Facilities in Public and Private Sector,” in the Rajya Sabha on August 7.
The report noted that private healthcare providers are about five to 10 times more expensive than public hospitals but still cater to nearly 70 per cent of the population.
Key recommendations of the panel
Upfront treatment cost estimates: All tertiary care hospitals should be required to provide patients with a legally binding estimate of treatment costs before starting any complex or prolonged medical procedure.
Rationalising room charges: Costs related to resident doctors, nursing staff, disposable medical supplies, meals and laundry could be included in the basic room tariff to make hospital billing more transparent and reasonable.
Financial support: Hospitals should appoint dedicated financial navigators to help patients and their families understand treatment costs, available charitable assistance and health insurance or assurance limits.
More public hospitals: The panel has recommended setting up autonomous and efficiently managed public multi-speciality hospitals in every revenue division. This could reduce dependence on major cities and minimise the need for patients to travel long distances for specialised treatment.
Review of FDI rules: The committee, headed by Samajwadi Party leader Ram Gopal Yadav, has recommended reviewing and rationalising foreign direct investment limits related to the management and acquisition of existing healthcare facilities. It also suggested incentives to encourage foreign investment in domestic pharmaceutical and medical technology manufacturing.
Boost private investment in smaller cities: To encourage private investment in multi-speciality hospitals in tier-2, tier-3 cities and rural areas, the panel proposed incentives such as tax holidays, soft loans, subsidised land and concessional electricity.