Kerala High Court stays Government Order allowing Private Hospitals to fix room rent for COVID-19 treatment [Read Order]

The Kerala High Court on Wednesday stayed a Government Order (GO) that allowed private hospitals to fix room charges for COVID-19 patients (Kerala Private Hospitals Association Vs Adv. Sabu P Joseph)..A Division Bench of Justices Devan Ramachandran and Kauser Edappagath passed the interim order on a petition filed by Kerala Private Hospitals Association seeking to review an earlier order of the High Court that had approved State GO capping COVID-19 treatment charges in private hospitals. ."You are looting people, our humble 'kanji' charged at Rs. 1,300:" Kerala High Court to private hospitals after State caps COVID treatment price.The earlier order came on a petition that claimed that private hospitals were overcharging patients for COVID-19 treatment. Following the High Court's intervention, the State passed a GO on May 10, 2021 capping the rates of COVID-19 treatment that can be charged by private hospitals, which was approved by the High Court the same day. .[BREAKING] Kerala High Court approves State govt decision to cap Covid treatment price, reserve 50% beds in private hospitals for COVID patients.On June 16, the State passed another GO supplementing the tariff that had been fixed for private hospitals by allowing the hospitals to decide the rates 'for other categories of beds like private rooms and suites'. The only condition imposed was that such rates must be displayed prominently..This, the Court declared, effectively allowed private hospitals to revert to the earlier practice of fixing any rent they wished to impose for treating patients. .The Court opined further that the "prominent" display of rates would be of no use to persons seeking treatment as at the time, such persons will have no choice as their lives are in peril. .As such, the Court rebuked the State, observing that the new GO defeats the very purpose of its earlier May 10 GO, wherein the government had capped prices fixed for beds and clearly mentioned that such rates included all corollary charges including nursing, boarding, doctor's charges etc..The interim order passed yesterday stated:."Without requirement of expatiation, what has been now done by the Government through this order is to allow the private hospitals to fix any rate for the rooms and suites and this takes away much of the laudatory objective of its first order dated 10.05.2021 because, as is clear therefrom, the rates fixed for the beds includes all corollary charges like nursing, boarding, doctor's fee, etc. Now, by allowing the private hospitals to fix any rate for their rooms and suites, they have become empowered to go back to the earlier situation in charges, albeit, with a condition that such rates be displayed prominently. We are of the view that such a display would be of no avail to an ordinary person who approaches for COVID-19 treatment, since, at that time, he would really have no choice, his life being in peril"..Having cited these concerns, the Court proceeded to stay the operation of the June 16 GO until the next date of hearing. .During the hearing, Advocate K Anand, appearing for the Private Hospitals Association, also highlighted certain issues regarding the treatment of pre-existing co-morbidities. .He argued that if a COVID-19 patient has pre-existing co-morbidities during hospitalisation, their treatment be excluded from the conditions for which treatment charges are capped by the government..Government Pleader S Kannan assured the Court that all the issues raised would be properly considered by the government and sought one week's time for appropriately responding to the Court's observations.."Our mind certainly travel to more aspects to say, but we choose to refrain from doing so because an opportunity must be given to the State to consider the issues in its right perspective", the Court said, while granting the time sought for. .In the meanwhile, the Court opined that it cannot allow the June 16 GO to operate and suspended the same until the next hearing date..The case will be heard next on June 30, 2021..The earlier May 10, 2021 GO had fixed the maximum general ward charge including bed, nursing and boarding at Rs.2,645 for non-NABH hospitals and Rs.2,910 for NABH hospitals. .ICU charges had been fixed at Rs. 7,500 per day for non-NABH hospitals and Rs. 8,580 for NABH hospitals. Charges for ICU with ventilators were capped at Rs.13,800 for non-NABH and Rs.15,180 for NABH hospitals. .This GO had also fixed rates charged at private hospitals for drugs and consumables, among others..[Read Order]