AI Generated by Fortune India
SC criticises high medicine prices; civil society groups seek regulation of private healthcare servicesOctober 5, 2026, 14:51 IST
Loading AI Hub...
Disclaimer : Certain content on this page, including summaries, timelines, FAQs, glossaries, highlights, insights, and other supplementary informational features, maybe generated or assisted by artificial intelligence tools. While reasonable efforts are made to review and verify such content, AI generated output may occasionally contain errors, omissions or inconsistencies. Readers are advised to independently verify any information before relying upon them for professional, legal, financial, medical or other decisions. The publisher along with its affiliates and contributors do not warrant accuracy of AI-generated content and disclaim any liability, loss or damage arising from its use.

SC criticises high medicine prices; civil society groups seek regulation of private healthcare services

/2 min read

ADVERTISEMENT

The demand comes amid renewed scrutiny of private hospital pricing.
SC criticises high medicine pr
The Supreme Court has questioned practices that require patients to purchase medicines from hospital-linked pharmacies and has asked the government to examine regulation of trade margins. Credits: Shutterstock

Amid intense judicial scrutiny of the pricing practices in Indian hospitals, civil society groups Jan Swasthya Abhiyan (JSA) and the Working Group on Access to Medicines and Treatment have called for urgent government intervention to regulate health care services offered by private hospitals. The groups alleged that patients continue to face excessive and arbitrary charges for treatment, medicines and medical consumables with little effective protection or recourse.

Sign up for Fortune India's ad-free experience
Enjoy uninterrupted access to premium content and insights.

The demand comes amid renewed scrutiny of private hospital pricing. The Supreme Court has recently questioned steep mark-ups on medicines sold through hospital pharmacies, including a case in which a cancer medicine supplied at ₹2,700 carried an MRP of around ₹27,000. The Court has also questioned practices that require patients to purchase medicines from hospital-linked pharmacies and has asked the government to examine regulation of trade margins.

The civil society groups complain that the problem goes far beyond the price of individual medicines. They say that India lacks an effective nationwide system to regulate what private hospitals can charge patients for procedures, services, medicines and consumables. A leading corporate hospital chains charge on average ₹60,000 to ₹78,000 per day of treatment, an unacceptably high level of profiteering that is paid for by ordinary patients through exorbitant hospital bills, they alleged.

While the Clinical Establishments Act, 2010 (CEA) provides a legal framework for regulating clinical establishments and envisages government-determined ranges of charges, it has not been implemented and even where states have Clinical Establishment Acts of their own, many states have no provision to regulate the hospital charges, the groups say.

“Private healthcare has expanded enormously in India, but regulation has simply not kept pace, there is no regulation of rates of care, the patient has virtually no bargaining power over what they are charged," said Dr. Abhay Shukla, Co-convener, JSA.

"Leading corporate hospital chains have been earning huge surpluses estimated in the range of ₹22 lakhs to ₹55 lakhs per year from each bed, in the last few years. The CEA was passed more than a decade ago, but its non-implementation has produced zero results on the ground. It is high time that the government starts to regulate the procedures in private hospitals. A patient should know how much they will be charged before agreeing to a treatment," he said.