Private hospitals seek revision in prices of covid tests, treatment

Many hospitals have cancelled regular operations to make space for the influx of covid patients. They also claimed that insurance companies have declined to pay higher charges
Many hospitals have cancelled regular operations to make space for the influx of covid patients. They also claimed that insurance companies have declined to pay higher charges
Private hospitals, strained by a flood of critically ill covid-19 patients, have asked the government to revise coronavirus testing and treatment costs and streamline health insurance reimbursements to ease the financial pressure on them.
Hospitals are under pressure as the pandemic has led to a drop-off in regular visits and surgeries that are more lucrative. Many hospitals have cancelled regular operations to make space for the influx of covid patients. They also claimed that insurance companies have declined to pay higher charges.
Amid reports of overcharging by private hospitals for covid treatment last year, the government capped the treatment prices to prevent patients from harassment. The treatment for isolation beds is currently priced between ₹8,000 and ₹10,000. For ICU units without ventilators, the charges are fixed between ₹13,000 and ₹15,000. For ICU with ventilators, a bed costs between ₹15,000 and ₹18,000. All charges include PPE costs.
“Certain insurance companies have been seeking parity in pricing for healthcare services as applicable to self-paying individuals in Delhi because the government order specified the treatment costs chargeable to covid patients," said Girdhar J. Gyani, director general, Association of Healthcare Providers (India) (AHPI).
“While all other state governments that have capped prices for healthcare services for coronavirus patients, such as Haryana, Maharashtra and Punjab, have explicitly stated in their notifications that insured patients will be treated at prices and terms as per insurance contract or policy, the Delhi order does not provide such clarity in their order," he said, adding that the private hospitals are bearing major losses.
The Delhi government this week decided to reserve 100% ICU beds and has declared 14 premier hospitals as dedicated covid treatment places. Further, 19 other tertiary private hospitals have been directed to reserve 80% ICU beds for covid-19 treatment and 82 private hospitals have been directed to reserve 60% ICU beds. AHPI has already approached the high court against the state government’s decision.
“Most of the private hospitals are currently operating on full capacity to tackle covid, as well as the non-covid, patients. Hospitals have been working on shoe-string budgets and have engaged and are utilizing all the available healthcare manpower, who are yet again giving in the maximum number of hours possible," said Dr Alok Roy, chair, FICCI Health Services and chairman of Medica Group of Hospitals.
Similarly, the second wave of covid-19 has forced the private diagnostic sector to reach out to the Union health ministry, state governments and Indian Council of Medical Research (ICMR) to review the caps on covid-19 tests from ₹400 to ₹800 across states.
“Price capping to unviable levels has made it impossible for labs to ramp up infrastructure and capacity during the second wave of covid-19. Hospitals and diagnostic labs are in a situation where price capping makes fresh investments virtually impossible even when there is increased demand for services. We have asked the government to revise the capping as we are undergoing huge losses," said Dr Harsh Mahajan, founder and chief radiologist, Mahajan Imaging.
The diagnostics companies have also voiced their concerns over deferred payment from government and private hospitals, mounting pressure on services.
The government and private diagnostic companies invested in automation and the expansion of infectious lab facility over last one year to scale up the capacity to meet the increased demand for RT-PCR testing.
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