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Health Activists Seek Ceilings on Hospital Charges and Medicine Margins

Health Activists Seek Ceilings on Hospital Charges and Medicine Margins
Health activists calls for regulation of private hospital charges, margins · thehindubusinessline.com

Health groups say some private hospitals charge patients very high prices for care and supplies.

They want the government to set limits on hospital bills and the extra amounts charged for medicines and medical items.

One example they gave was a medicine that cost a hospital ₹180 but was sold to a patient for ₹950.

They also said some large hospital chains have high surpluses per bed.

The groups pointed to a law from 2010 that was meant to help regulate health facilities, but said it has not been put into effective practice.

The Supreme Court has also questioned high medicine prices in hospitals.

It has asked the government to look at rules for medicine trade margins.

The groups say patients should have clearer prices and more protection.

Key facts

Hospital bills cited
Average daily bills at five leading corporate chains were reported at ₹60,500–₹73,000 in 2024–25; some charges approached ₹78,000 a day in 2025–26.
Estimated annual surplus
Abhay Shukla estimated ₹22 lakh–₹32 lakh per bed annually at the cited chains, with Max Healthcare estimated at nearly ₹56 lakh per bed.
Medicine example
A medicine purchased for around ₹180 was reportedly supplied to patients for ₹950.
Consumable example
An IV set purchased for around ₹11.50 was reportedly billed at ₹160.
Medicine-mark-up analysis
An analysis of 46 medicines found median mark-ups of around 200–400%, according to Shukla.
Relevant law
The Clinical Establishments Act, 2010, provides a framework that envisages government-determined ranges of charges, but the groups said it has not been effectively implemented.
Supreme Court scrutiny
The court questioned a cancer medicine supplied at around ₹2,700 with an MRP of around ₹27,000 and asked the government to examine trade-margin regulation.

Quotes

Jyotsna Singh

Co-convener of the Working Group on Access to Medicines and Treatments.

“The MRP cannot become a licence to charge patients many times the procurement price. The government must urgently fix the trade margins on all medical products and ensure that patients are free to purchase medicines and consumables from outside wherever clinically possible.”
indianexpress.com
“Medicines and medical consumables are a particularly serious concern. These are being sold at 200, 300, 400 up to 1,000 per cent excessive margins. This needs to be urgently addressed.”
thehindubusinessline.com

Sources

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