The Supreme Court on Tuesday called on the state governments to introduce a policy to check overpricing of medicines and medical devices at private hospitals.

 “We dispose of this petition with direction to all state governments to consider this issue and take appropriate policy decision as they deem fit,” a bench of Justices Surya Kant and N Kotiswar Singh ordered, reports Live Law.

The apex court has called on the states to introduce a policy ensuring that hospitals do not compel patients to buy essential medical items from in-house pharmacies at inflated rates, as compared to notified market prices.

Hearing a Public Interest Litigation (PIL) on the issue, Justice Surya Kant highlighted concerns over patients being left with no choice, but to purchase medicines, implants, and medical devices at exorbitant prices from hospital-linked pharmacies. While acknowledging the problem, the court questioned how such practices could be effectively regulated and enforced without unintended consequences.

The petitioner argued that this practice amounts to blackmail, depriving patients of their right to fair pricing. In their PIL, the petitioners sought a direction to private hospitals not to compel the patients to purchase medicines, devices, implants from the hospital pharmacies only, where they allegedly charge exorbitant rates.

“The course of treatment was continuing when the petition was filed in 2018... we are informed that the patient (relative of petitioner) has recovered... petitioners allege that during treatment, they realised that there is a sort of organised system in hospitals for compelling patients to buy medicines and other things only from pharmacies run by the hospitals or with whom they have collaboration. It is claimed that medicines, equipment among other things are sold by these pharmacies at highly increased prices as compared to MRP notified by the competent authority. It is further alleged that the Union and states have failed to take regulatory and correctional measures, as a result of which patients are being exploited,

The respondents, including the Union government, countered that the National Council for Clinical Establishments has issued minimum standards and mechanisms like Amrit and Jan Aushadhi stores, which already provide affordable medicines in government hospitals. The central government has taken a stand that there is no compulsion for patients to buy medicines and other things from hospitals or pharmacies linked with them.

According to the order text, most states have highlighted state-run schemes meant for ensuring that drugs, consumables and medical services are made available at affordable prices.

However, the court noted that regulation in private healthcare remains inconsistent, leading to potential exploitation.

“In proportion to population of this country, states have not been able to deliver requisite medical infrastructure to cater the needs of all kinds of patients. The states have therefore facilitated and promoted private entities to come forward in medical field, as a result of which numerous renowned hospitals well known for their specialties...[...]... have been setup throughout the country... on one hand, the state as well as the people largely depend on them,” the top court said.

Recognising the challenges in enforcing a blanket policy, the court disposed of the petition and refrained from issuing direct orders, but directed all state governments to assess the issue and frame appropriate policies to safeguard patients’ rights while ensuring that private hospitals continue to function without unreasonable restrictions.