Overpricing amid COVID-19: Delhi High Court directs GNCTD to convene meeting with hospitals to cap hospital charges

In view of concerns being raised that exorbitant fees are being demanded for hospital treatment amid the pandemic, the Delhi High Court on Wednesday directed the government of Delhi to convene a meeting with hospitals and associations to discuss how prices levied for treatment of COVID-19 may be rationalized. .Based on what happens during the meeting, the Delhi government has been directed to issue appropriate orders to cap prices levied by private hospitals and nursing homes for the treatment of COVID patients..A Bench of Justices Vipin Sanghi and Rekha Palli passed the order after hearing submissions made by advocate Abhay Gupta..Gupta referred to a Kerala government circular issued recently where the prices for hospital treatment were capped at rates less than the caps announced by the Delhi government last year..The Court had earlier asked the government on whether the earlier caps should be revised now in view of the huge surge in COVID-19 cases and since many hospitals have since been converted to 100 percent COVID-19 facilities. Gupta pointed out that the government had been expected to respond on this issue today..Gupta went on to highlight that social media is full of grievances over the fee levied for hospital treatment. ."They could do something to contain the ambulance charges (as well). We are a month old in the second wave of the pandemic ...They are giving free water, electricity. I could only use those facilities if I can live," he added. .Appearing for the Delhi Government, advocate Satyakam submitted that action would be taken if there are complaints. He said that without complaints, the government has not proceeded against hospitals on a coercive footing since hospitals are also helping amid the COVID-19 crisis. ."Merely because there are no complaints, the situation cannot be ignored on the ground," Justice Sanghi responded. .He added that the government ought to talk to the concerned stakeholders and cap the prices, which may be done slab-wise or in a graded manner, depending on the hospital and the treatment to be given to the patient..Senior Advocate Rahul Mehra, for the Delhi government, told the Court that the Principal Secretary of the Health Department can be requested to have a video conference meeting with all hospitals. .The Court said that it is not ordering the government to impose Rs. 18,000 (the cap last year) or some other specific amount as the cap, while acknowledging that it would be counterproductive if hospitals stop rendering services. .Rather, the Bench urged the government to have a meeting and arrive at the cap with consensus. There should be transparency in such issues, the Court said. The Bench also questioned the government why it had not taken a decision on revising the price caps as of yet. ."We want to take this on priority. When will you come back on this? ... Why did you not do this? We had ordered on this,"\ Justice Sanghi said..In the order passed today, the Court recorded:."The issue raised by Mr Gupta is a very serious issue.. There are documents that show that even though bracket charges were fixed, over and above bracket charges, money is being collected by different heads which, prima facie, formed part of the bracket charges themselves ... We direct the Secretary, Health, GNCTD to convene a meeting with the administration of a cross-section of hospitals… and their associations to discuss the said aspect that there is … rationalisation of the charges beeng charged by hospitals and nursing homes ... The learned amicus shall also be sent an invite for joining the said meeting. … premised on what transpired in meeting, GNCTD shall issue appropriate orders capping prices levied by private hospitals and nursing home for treatment of COVID patients.".Taking note of a submission made by Gupta in this regard, the Court also asked Senior Advocate Mehra to take note that it is important to detail what consequences may follow for those who violate the price limits. .Mehra responded that the government can also take measures to conduct an audit now. However, this may entail coercive measures being taken if any hospitals is found to have violated the price limits. This in turn may cause other issues, Mehra pointed out. ."This meeting will happen. We will also simultaneously have an audit and take the strictest coercive measures… but your lordships may also not intervene when hospitals come crying to court ... We issued a show-cause notice earlier, said we might do something, (hospital came to court) and we were made to withdraw the order.. petitioner should also keep that in mind," Mehra submitted. .The Court, however, responded by urging that the government should try to maintain balance when it comes to such issues. ."There has to be a sense of equilibrium,. Government cannot swing like a pendulum from one end to another… when you issued that order, hospitals asked what will do with patients already admitted?", Justice Sanghi pointed out..A status report on the meeting and ensuing steps is to be placed before the Court on Tuesday..Whereas Advocate Prasanna urged the Court to allow the All India Drug Action Network, which has collected information on such issues, to join the meeting to be convened, the Court declined to pass such a direction..Instead, the Court suggested that the information be shared with Amicus Curiae, who may share it during the meeting..Read a live account of the hearing today: