Report says hospitals that use their dominance to charge exorbitant prices may soon face penalties


New Delhi: The Competition Commission of India (CCI) has found that some of India’s major hospital chains have charged high fees for services and products, undermining their market dominance, according to a Moneycontrol article.

The fair trade regulator in India will meet soon to review responses from hospital chains including Apollo Hospitals, Max Healthcare, Fortis Healthcare, Batra Hospital and Medical Research, Sri Ganga Ram Hospital and St Stephen’s Hospital. Depending on the responses, you will then apply penalties.

The MC said the commission could impose severe penalties. The fine may be up to 10% of the average annual revenue of hospital chains for the previous three years. Apollo had an average annual income of Rs 12,206 crore.

The average annual revenue of Fortis Hospitals over the past three years has been Rs 4,834 crore.

Room rentals, medications, diagnostic procedures, medical equipment, and consumables all come with a higher price tag. The research also indicated that rates of stay in some hospitals were higher than those in 4-star hotels.

Over the past few years, CCI has been researching the Indian pharmaceutical industry. It issued a warning against companies abusing the Covid-19 pandemic and breaching competition laws in April 2020.

According to the report, the investigation and sanctions may help lower the cost of drugs and equipment. It may also increase the transparency of the healthcare industry.

Hospitals were selected based on the number of doctors and paramedics, beds and patient turnover. In addition, many institutions do not allow patients to purchase consumables, tests, instruments, or medications from third-party sellers.

According to the report, CCI handed over investigation reports to hospitals on July 12, 2022. These hospitals were found charging more than other manufacturers of consumables such as syringes and blades as well as tests such as X-rays, MRIs and ultrasounds.

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