Relief for patients? Kerala plans curbs on private hospital charges, medical tourism fees

THIRUVANANTHAPURAM: The proposed law aimed at preventing private hospitals from overcharging patients will also cover Ayurveda, homoeopathy, Siddha, Unani, yoga and naturopathy treatment centres. This legislation is expected to include measures to regulate excessive fees and address alleged malpractice at Ayurveda centres, particularly those operating under the guise of medical tourism. The Health Department has received complaints indicating that some Ayurveda hospitals charge exorbitant fees, especially within the medical tourism sector, and fraudulent practices have been reported at several of these centres.

Initially, the government planned to restrict the proposed law to allopathic hospitals. However, the complaints against certain Ayurveda hospitals have led the department to contemplate extending regulation to other forms of medicine. Another proposal under consideration is the imposition of a cess on large hospitals with significant foreign investment, while small and medium-sized hospitals may be exempted.

The government is also exploring the expansion of health insurance schemes to cover more private hospitals. A draft Bill committee, headed by Health Principal Secretary Sharmila Mary Joseph, will assess whether medicines can be supplied to private hospitals through the Kerala Medical Services Corporation Ltd. (KMSCL), a public-sector agency responsible for medicine procurement and distribution. The committee is expected to convene soon.

Proposals under consideration:

- Medicines sold at private hospitals should be priced below the maximum retail price (MRP).
- Charges for services such as laboratory tests, scanning, and room rent should be reduced.
- A mechanism should be established to evaluate complaints related to treatment errors and medical negligence, and to recommend measures for improving the quality, safety, and accountability of patient care.

What about the Clinical Establishments Act?

The proposed legislation is introduced despite the existence of the Clinical Establishments Act, which was passed by the Kerala Assembly in 2018 to regulate private healthcare establishments, including their fees. The first Pinarayi Vijayan government initiated the Act to curb undesirable practices within the healthcare sector. However, strong opposition from private hospitals hindered its implementation, and the issue was not pursued by either the first or second Pinarayi Vijayan governments.

The Act contains provisions requiring hospitals to display their service charges and prohibits them from denying life-saving treatment based on reasons such as failure to pay in advance or lack of documentation.