Delhi proposes 50% profit cap on medicines at private hospitals

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New Delhi, May 28 (IANS) The profits on medicines and consumables at private hospitals and nursing homes here is proposed to be capped at 50 per cent, according to a draft advisory of the Delhi government.

Health Minister Satyendar Jain told the media here on Monday that the draft advisory will now be put in the public domain to invite objections and suggestions within 30 days. A final advisory will then be crafted on the basis of inputs.

According to the draft advisory, the prices of medicines and consumables could maximum cost 50 per cent more than the purchase price or equal to the MRP, whichever is lower.

The Minister said that the Delhi Nursing Home Act would be changed to incorporate this and other directions in the advisory and violations can lead to cancellation of the hospital’s licence.

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In December, the Delhi government had formed a nine-member committee to put a cap on the profits on medicines and consumables in the private hospitals and nursing homes.

The committee had experts, including members from the Indian Medical Association and the Delhi Medical Council, among others.

Forming the committee, Jain had said that hospitals deriving profits of 500 and 1,000 per cent was unacceptable.

On Monday, Jain said that the cost of services like doctors’ fees has not been capped.

Asked whether the changes would require Lt Governor Anil Baijal’s approval, Jain said: “It doesn’t look so till now.”

The Delhi government has locked horns with the Lt Governor in the past, as most of the schemes and programmes need Baijal’s approval.

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–IANS

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