Health

Health groups seek caps on private hospital charges and drug margins

Two health advocacy groups have called on the Centre and the States to regulate private hospital charges and cap trade margins on medicines and medical supplies. In a statement issued in New Delhi on Monday, 5 October 2026, the Jan Swasthya Abhiyan (JSA) and the Working Group on Access to Medicines and Treatment said patients still face high and arbitrary bills with few ways to challenge them, The Hindu reported.

Supreme Court scrutiny sets the backdrop

The demand comes amid renewed attention from the Supreme Court on pricing in hospital pharmacies. The court has recently questioned steep markups on medicines sold through hospital pharmacies, as well as practices that require patients to buy from pharmacies linked to the hospital. It has also asked the government to look at regulating trade margins.

The groups said the problem goes beyond the price of individual medicines. “Private healthcare has expanded enormously in India, but regulation has simply not kept pace,” said Abhay Shukla, co-convener of the JSA.

The Clinical Establishments (Registration and Regulation) Act, 2010, provides a framework that includes standardising services and charges. But its implementation is uneven, and several States run their own laws or regulatory systems.

Caps on private hospital charges: what the groups want

The statement sets out several demands:

  • ceilings on charges levied by private hospitals for procedures, services and treatment;
  • regulation of trade margins on medicines, medical devices and consumables;
  • an accessible, time-bound mechanism for patients to challenge excessive bills;
  • a competition-law review of practices that may be anti-competitive;
  • higher public health spending and stronger government hospitals.

K.M. Gopakumar, co-convener of the Working Group, said the maximum retail price should not become a licence to charge patients many times the procurement price. The groups also cited earlier concerns raised by the Competition Commission of India about margins in pharmaceutical sales.

Concern over incentives for doctors

The statement also flagged the effect of financial incentives on clinical decisions. Gayatri Sharma, a community health physician and researcher, said revenue-linked incentives could push doctors to order more tests or procedures.

“Doctors should be able to make treatment decisions solely on the basis of what is medically necessary for the patient,” she said. She called on the National Medical Commission to examine pay practices that link doctors’ earnings to hospital revenue.

The groups said patients facing long hospital stays, or procedures that use many medicines and devices, are the most exposed to large bills.

Source: The Hindu

Photo: Alexey Komarov / Wikimedia Commons, CC BY-SA 4.0 (resized)

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