Should govt fix prices of medical services in private clinics?

Doing business in India might have become easier, however, the practice of medicine is set to become a whole lot more difficult in the state of Karnataka. The proposed Karnataka Private Medical Establishments Bill, 2017 (Bill) has caused much uproar in the past few months and rightly so. The Bill not only fails to achieve its intended goals but also creates new problems.

There are a few positive aspects of the Bill like acceptance of online applications for the registration of private medical establishments and requiring that the final bills do not exceed the quoted estimates.

Charges to be fixed by the State

What is problematic, however, is that the medical establishment is not at liberty to set its own prices for medical treatment. Instead, the amendments proposed would allow the government to fix charges for medical services provided by private medical establishments. This is an extraordinary measure which would amount to excessive government intervention and also set a dangerous precedent.

Bangalore is one of the top destinations for medical tourism in India because of the quality healthcare available. Government intervention in pricing is bound to bring down the quality as private medical establishments, like any other private service providers or businesses are for-profit establishments.

It is high time that the government focuses on rooting out corruption in public healthcare establishments which is rampant all over India.

If the ultimate aim is to provide quality healthcare at affordable costs to citizens, then the focus of reforms should be on government medical hospitals which have the responsibility of providing healthcare to all citizens. On the contrary, the government has rejected the Justice Vikramjit Sen committee’s recommendation that the new rules should apply to both government and private medical establishments. It is high time that the government focuses on rooting out corruption in public healthcare establishments which is rampant all over India.

Redressal forum

If the aim is to protect citizens from malpractice, both civil and criminal remedies already exist. Instead of improving awareness regarding these existing remedies, the government, through the Bill creates a new redressal forum known as the District or Metropolitan Grievance Redressal Committee which yields both investigative and quasi-judicial powers. Creating such a forum, despite the existence of other forums including consumer forums is inefficient.

Besides, cases regarding medical practice require special expertise and any judicial or quasi-judicial body would require time to hone its experience in the area.Interestingly, the composition of this forum consists of the CEO of the Zila Panchayat, superintendent of police of the district, a representative of a private medical establishment in the district, the district surgeon, public prosecutor and ‘women representatives’ nominated by the government.

While a member with judicial experience is conspicuously absent from the members listed, it is even more curious that for some members of the committee the only qualification required is being women.

Doctors’ strike

Although the Indian Medical Association of Karnataka is right to oppose the Bill before it is enacted, it should caution against calling for strikes and shutdown of all private medical establishments since ultimately patients would suffer the consequences.