Can private healthcare prices be capped? Should they be?
Insurance has already been bending the hospitals’ will—from revenue maximisation to standardised charges. But state intervention may break their spirit
On 13 June, the Karnataka legislative assembly discussed a law to enforce standardised charges for medical treatments
On 17 March, West Bengal enacted the law. On 1 June, the state government proposed the rates for all treatment and diagnostic packages across hospitals
Privately sold insurance is not yet there; the promise of NHPS has not been kept and state governments want to do what they can—cap prices
It is the first time that any government wants to fix the fee a doctor can charge from a patient in an open market
On 13 June, the Karnataka legislative assembly discussed a law to enforce standardised charges for medical treatments. The following days saw closed hospitals, doctors on the streets protesting against the bill and heated debates among the state’s political leaders. A week later, the government decided to reconsider the bill. The risk is mitigated but certainly not averted for private healthcare providers.
Karnataka is not the first state to express an intention to fix prices for them, and it certainly won’t be the last. In…
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