We should not turn the clock back towards a command-and-control economy with services!

The Supreme Court of India's recent directive to regulate prices for medical treatments and procedures has sparked a crucial discussion about the state of healthcare in the country. Currently, we observe two distinct pricing tiers: one for those with insurance and another for those without.

The growing influence of the insurance sector has inadvertently contributed to the escalation of medical costs, by nudging a large population of buyers to spend incrementally more on health insurance policies - an effect large in magnitude, but goes unnoticed. However, this trend has also yielded positive outcomes. The medical sector has witnessed increased investments, propelling India to become a preferred destination for medical procedures globally. The Indian medical tourism industry, valued at $7.4 billion in 2022, is projected to soar past $42 billion by 2032. India's competitive edge lies in its cost-effective treatments, with procedures like heart bypass surgery costing around $5,200, compared to a staggering $144,000 in the US. While India's medical tourism sector continues to thrive, domestic insurance penetration remains a significant challenge. As of 2021, only 37% of India's population had some form of health insurance coverage. Fixing prices could help address this issue by reducing insurance costs, making healthcare more accessible and affordable for a larger portion of the population. The objective is a harmonious balance where quality healthcare is not only a reality for the insured minority but an accessible service for the vast majority, without compromising the investments necessary for the healthcare sector's growth and development. By fostering a conducive environment for investments, promoting specialized treatments, and leveraging initiatives like "Heal in India", we can solidify India's position as a global leader in medical tourism.

Hospital board of India's submissions:

• should not be implemented without a proper analysis of costing, patient requirements and the expertise of doctors.
•  “Scientific costing has to be done before standardisation of rates. The prices of these services must be decided keeping in mind the high medical inflation in India.
• We also need categorisation of hospitals based on the location and type. It cannot be one size fits all.”
• Treatment procedures at hospitals are a service and should not be compared to a product for which a standard price can be fixed. 
• Prices of services cannot be measured like a product. A neurosurgeon with 20 years of experience and another with 5 years of experience will not have the same rate per sitting.
• Our national goal should be to ensure that all patients can access the care they need, at a quality that meets their requirements, and at a price that they can afford.
• “A single price for procedures penalizes high quality, reduces patient choice, and forces our best and brightest doctors to leave the country.
• The case originated from a Public Interest Litigation (PIL) filed by the NGO 'Veterans Forum for Transparency in Public Life,' represented by advocate Danish Zubair Khan. The PIL urged the court to instruct the Centre to determine rates for patients according to Rule 9 of the Clinical Establishment RULES2012.