Check Overpricing Of Medicines, Medical Devices At Private Hospitals: Supreme Court

Check Overpricing Of Medicines, Medical Devices At Private Hospitals: Supreme Court

Madhya Pradesh government had formed a committee of three IAS officials to monitor hospital bills and prices of medicines in 2021.

Staff ReporterUpdated: Wednesday, March 05, 2025, 12:22 AM IST
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Check Overpricing Of Medicines, Medical Devices At Private Hospitals: Supreme Court | (Photo Courtesy: X)

Bhopal (Madhya Pradesh): The Supreme Court on Tuesday called on the state governments to introduce a policy to check overpricing of medicines and medical devices at private hospitals. Bench of Justices Surya Kant and N Kotiswar Singh passed the order.

Madhya Pradesh government had formed a committee of three IAS officials to monitor hospital bills and prices of medicines in 2021. Former Bhopal collector Avinash Lawania had launch a massive crackdown against private hospitals.

The SC has called on the states to introduce a policy ensuring that hospitals do not compel patients to buy essential medical items from in-house pharmacies at inflated rates, as compared to notified market prices.

Hearing a public interest litigation, SC highlighted concerns about patients forced to purchase medicines, implants, and medical devices at exorbitant prices from hospital-linked pharmacies.

While acknowledging the problem, the court questioned how such practices could be effectively regulated and enforced without unintended consequences. The petitioner argued that this practice amounts to blackmail, depriving patients of their right to fair pricing.

In their PIL, the petitioners sought a direction that private hospitals should not compel patients to purchase medicines, devices, implants from the hospital pharmacies only, where they allegedly charge high.

The union government countered stating mechanisms like Amrit and Jan Aushadhi stores provide affordable medicines at government hospitals. The Centre said there was no compulsion for patients to buy medicines and other things from hospitals or pharmacies linked with them.

In the past

In May 2021, teams of Bhopal district administration reached a private hospital in Neelbad where a patient who was admitted for 14 days was charged Rs 3 lakh. After inspection, it was found that the patient was charged Rs 40,000 extra, which the hospital was made to return.

A hospital in Entkhedi was made to return Rs 1.4 lakh to kin of a patient, said sources. A hospital in Kohe-Fiza was made to return Rs 50,000 to kin of a patient and Rs 15,000 to kin of another patient. Similarly, Gautam Nagar based private hospital had returned Rs 6 lakh in 2021.

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