The Supreme Court has urged State governments to craft policies addressing the issue of excessive billing and patient exploitation in private hospitals, stopping short of issuing direct mandates on the matter.
A Bench of Justices Surya Kant and N Kotishwar Singh emphasized that policy decisions on healthcare pricing are best handled at the State level, warning that judicial intervention could inadvertently stifle the expansion of private medical facilities.
“Policy-makers are best equipped to strike a balance—protecting patients from predatory pricing while ensuring private hospitals continue to flourish,” the Court remarked.
The ruling came in response to a public interest litigation (PIL) highlighting allegations that private hospitals systematically overcharge by requiring patients to purchase medicines and supplies exclusively from their in-house pharmacies at steep markups. The case stemmed from the personal experience of the petitioners, who faced exorbitant costs during a family member’s cancer treatment.
While recognizing the fundamental right to healthcare under Article 21 of the Constitution, the Court noted that India’s vast population has made it difficult for State governments to build adequate medical infrastructure. This shortfall has led to the rise of private hospitals, which now play a critical role in the country’s healthcare system.
Acknowledging this reality, the Court refrained from imposing blanket restrictions on private hospitals, instead directing State governments to examine the issue and implement regulatory measures as they see fit.