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Centre Flags Data Gaps in Regulating Hospital Mark-ups

The Centre has highlighted gaps in the data needed to assess and regulate mark-ups on hospital consumables, telling the Supreme Court that margins on certain medical supplies can range from 100% to 1,000% or more.

The government said it currently lacks sufficient information to evaluate the difference between the prices at which hospitals purchase medical consumables and the amounts charged to patients. Establishing these costs would be an important step before considering wider measures to regulate hospital billing.

The issue has drawn attention to the financial burden patients can face during hospital treatment, particularly when the cost of consumables and other medical supplies adds significantly to their final bills.

The Centre pointed out that existing price-control measures cover scheduled medicines and include limits on annual price increases for non-scheduled drugs. It has also imposed a trade-margin cap on certain anti-cancer medicines. However, extending similar controls across a wider range of hospital supplies would require detailed analysis and consultation.

Regulating hospital charges presents additional challenges because healthcare is primarily a state subject, and billing practices vary across institutions and regions.

The government’s position indicates that more comprehensive information on procurement costs and patient charges would be necessary before broader interventions could be considered.

Greater transparency in hospital billing could help patients better understand treatment expenses and support informed decisions about their care. The issue also highlights the need to balance affordability for patients with the operational requirements of healthcare institutions.

No new nationwide price-control measure was announced in the reported development. The immediate challenge remains gathering reliable data to assess hospital mark-ups and determine whether further regulatory action is warranted.

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