Health · Healthcare & Policy · 5 hrs ago
Centre cites data gaps and legal hurdles in regulating hospital mark-ups
The Centre told the Supreme Court hospital mark-ups may reach 1,000% or more on medicines and consumables used in treatment.
The court is examining concerns about high charges to patients at hospitals in India.
The government says it lacks data to measure margins across hospital supplies and wants to compare hospitals’ purchase prices with the amounts billed before considering controls.
It already sets ceiling prices for some medicines and has capped trade margins on certain anti-cancer medicines at 30% of their maximum retail price.
But health is a state subject, and officials say the Centre faces limits on regulating hospital bills.
Hospitals may charge package rates without itemised bills, and officials warn limits on consumables could lead some hospitals to raise other fees.
The government says it needs data and consultation before deciding on wider controls.
The Union government told the Supreme Court that margins on hospital consumables can range from 100% to 1,000% or more.
Officials said the Centre lacks data to assess margins across hospital supplies and determine whether wider price controls are needed.
They said purchase prices must be compared with what hospitals charge patients before considering intervention.
Officials also cited legal and practical hurdles, including state authority over hospitals and the use of package rates without itemised bills.
The Centre currently regulates prices of scheduled medicines and has capped trade margins on certain anti-cancer medicines.
- Who
- The Union government and officials. The Supreme Court is examining hospital mark-ups.
- What
- The government cited data gaps and legal hurdles in extending price controls to hospital supplies.
- When
- The report was published on October 22, 2026.
- Where
- New Delhi. The issue concerns hospital charges in India.
- Why
- The government says it needs data on purchase prices and patient charges to assess margins and whether intervention is warranted.
This story does not have two clearly opposing sides.
This story does not have a timeline yet.
- Reported consumables margins
- 100% to 1,000% or more
- Existing cap on certain anti-cancer medicines
- Trade margins capped at 30% of MRP
- Annual price increase limit
- Up to 10% for non-scheduled drugs
- Report publication date
- October 22, 2026
2 sources
What people are saying
We first need to get the data and then examine whether there is a margin and a need to control it