The Bureau of Indian Standards (BIS), under the National Standards Body of India, has embarked on a mission to standardize and enhance transparency in the billing practices of hospitals. This initiative aims to safeguard the interests of patients, health insurers, and government agencies. BIS has reached out to industry bodies and various stakeholders to gather their input.
The impetus for this move stems from the recent Supreme Court directive, which highlighted the absence of specified price ranges for treatments and procedures in private hospitals. The court’s concern was particularly pronounced due to instances of unexplained charges and services appearing on patient invoices.
“A crucial meeting has been scheduled for May 15th to discuss this matter. We have sought recommendations from public representative bodies and think tanks on potential regulatory changes for hospital billing,” disclosed an official with knowledge of the proceedings. “Currently, we are focused on collecting suggestions, and subsequent decisions will follow,” added the official, requesting anonymity.
The issue of transparency in billing by private hospitals has been a long-standing concern, which was further exacerbated during the COVID-19 pandemic. Patients often faced invoices with unexplained items or services, leading to confusion and discontent.
“Even healthcare professionals encounter public backlash due to billing-related ambiguity. Therefore, devising a simplified billing system for hospitals is imperative. This will facilitate both public understanding and efficient hospital administration,” remarked another official privy to the developments.
Dr. Girdhar Gyani, Director General of the Association of Healthcare Providers (India), welcomed the move to define a billing format or template, provided it is meticulously designed in collaboration with key stakeholders. “Such a template should be comprehensive to accommodate all potential variables, ensuring uniformity and, most importantly, ease of understanding, ultimately leading to enhanced transparency,” he expounded.
However, the Union health and family welfare ministry recently informed the Supreme Court that uniformity in charges for the same procedure across all hospitals may not be feasible. The apex court had earlier instructed the ministry to convene a meeting with all state health departments after observing glaring discrepancies in medical treatment prices between government and private medical facilities.
Senior advocate Harish Salve, representing NatHealth-Healthcare Federation of India, emphasized that determining the price of medical services is not the purview of the courts, but rather the responsibility of the legislature. “Establishing uniform prices for medical services across all hospitals in India is simply not possible. A one-size-fits-all approach is impractical,” Salve stated. “There is a fundamental difference between government hospitals, which receive various subsidies, and private hospitals, which do not enjoy such benefits. Price capping is not implemented in any other service industry in India, and it is equally infeasible in healthcare.”
In February, the apex court criticized the Centre for its failure to enforce the 14-year-old Clinical Establishment (Central Government) Rules, designed to regulate standard charges for medical treatments and procedures. While the Union government had proposed a pricing template for all states, state authorities expressed concerns about the practicality of fixing price ranges for various treatments and procedures.
“By addressing this issue holistically, stakeholders can pave the way for fair and equitable billing practices, fostering greater accountability and confidence in the healthcare system as a whole,” concluded Dr. Gyani.
