"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 Kerala High Court on Monday took exception to the exorbitant charges being levied by private hospitals for treating COVID-19 patients stating that the hospitals are engaging in loot of ordinary citizens by charging high rates for treatment and services (Adv Sabu P Joseph v. State of Kerala and ors)..A Bench of Justices Devan Ramachandran and Kauser Edappagath noted that PPE kits are priced at Rs. 22,000 and even Kanji (rice porridge) is being given at Rs. 1,300. "We found unconscionable billings, Rs 22,000 for PPE kits. Look at the bills. We saw our humble "Kanji" is charged at Rs. 1300. Our Humble Kanji. Dolo is charged at Rs. 30-40," the Bench said. The Court said that it will intervene considering the plight of ordinary citizens and the rapid rise in infections. "Imagine the plight of a citizen who earns 1000 and sees a bill of 2-3 lakhs. We are seeing infections rising rapidly. This is not an isolated case. anyone can catch the infection now. You are looting people. Think about it, we have to intervene now," the Court said. .We saw our humble "Kanji" is charged at Rs. 1300. Our Humble Kanji. Dolo is charged at Rs. 30-40.Kerala High Court .The remarks were made after the private hospitals opposed a government decision to cap the price for treatment of COVID-19 at private hospitals.The Court was hearing a plea moved over the pricing of medical treatment in private hospitals amid the COVID-19 pandemic..When the matter was taken up on Monday, State counsel the Court that a Government Order (GO) has been issued in this regard. ."As per the GO, the price for general ward would be Rs. 2,645, including registration, bed, nursing and boarding, blood transfusion, oxygen, Xray, consultation, diagnosis etc," State counsel said. He added that expenses for costly medicines like Remdesivir will be separate while the rate for RT-PCR test would remain at Rs. 500 as fixed by the government earlier. .A penalty of ten times the rate will be imposed in case of overcharging, it was further pointed out. .The lawyer appearing for private hospitals, however, opposed the same. He gave details of the expenses incurred by hospitals stating that though they don't want to charge extreme prices during pandemic, they also have constraints. But the Bench said that it found the government stand appreciable. "We are happy that govt has come with our order. We will let the GO operate. There is no challenge to it now. Let us see how it goes," the Court said. .The Court also observed that similar orders have been issued by Andhra Pradesh, Tamil Nadu and Rajasthan. ."Because of the pandemic, you are having 100% occupancy. Normally it is on 50-60%. Learn to average your costs," the Court told the hospitals. .The Indian Medical Association submitted that the Court may draw a distinction between the poor and well to do people, who can pay a reasonable price for COVID-19 treatment."In pandemic situation there is no rich and poor. We don't approve cross-subsidization during pandemic," the Court made it clear. .In pandemic situation there is no rich and poor. We don't approve cross-subsidization during pandemic.Kerala High Court .The Court also clarified that the price cap fixed by the government will apply only prospectively. "All bills raised after order, henceforth, will be governed by GO. Any admission and bills prior to this bill will be governed by the then rates," the Court said. .During the hearing of the matter last week, the Court had also made several suggestions for the State to consider, including whether the government could take over 50 percent of beds in private hospitals for a temporary period in view of the COVID-19 pandemic. .[COVID-19] Can you take over 50 percent hospital beds in Kerala for 1 or 2 months? Kerala High Court asks State government