Parliamentary Panel calls for regulation of private hospital room charges
A parliamentary committee on health and family welfare has raised concerns about the steep difference between treatment costs in government and private hospitals, particularly for major illnesses such as cancer, cardiac conditions and kidney disease.
The committee, chaired by Prof Ram Gopal Yadav, said treatment in private facilities can cost several times more than in government hospitals. It has recommended urgent action to bring private hospital room charges under control.
After examining hospital billing practices, the 31-member panel said room rates differ significantly depending on location, facilities, service standards and operating expenses. It proposed that private hospitals in major metropolitan areas should not charge more for rooms than the average rates of three-star hotels located nearby.
The committee suggested that other legitimate expenses, including resident doctors, nursing services, consumables, meals and laundry, could be added separately to the basic room tariff as part of a more transparent cost structure.
The panel also said existing regulation often focuses on acute treatment and surgical procedures while patients can continue to face substantial expenses during follow-up care, rehabilitation and palliative treatment.
To address this, it recommended regulated “Continuum of Care” packages combining screening, diagnosis, treatment and palliative services within a capped financial framework. The aim would be to prevent economically weaker patients from discontinuing treatment during later stages of care.
The committee’s report noted that the average inpatient treatment cost for an illness in India was around Rs 37,858, while patients’ average out-of-pocket spending was approximately Rs 34,064.