Plea before Supreme Court challenges rules fixing rates for hospitals, nursing homes

New Delhi: A plea has been filed before the Supreme Court challenging the Central government rules empowering it to prescribe a range of rates for medical procedures and services which private hospitals and nursing homes can charge.

The plea challenges the validity of Rule 9(ii) of the Clinical Establishments (Central Government) Rules, 2012 as being manifestly arbitrary, irrational and unconstitutional, violative of Article 14, Article 19(l)(g) and Article 21 of the Constitution.

“The Impugned Rule is also ultra vires the principal Act, namely the Clinical Establishments (Registration and Regulation) Act, 2010 insofar as the Parent Act does not confer power on the Respondent (authorities) to make rules in relation to the rates that clinical establishments can charge for medical procedures and services,” it said.

The rule provides that clinical establishments will charge the rates for each type of procedure and service within the range of rates determined and issued by the Central government from time to time, in consultation with the state government.

“The Seventh Schedule to the Constitution is recognition that the subject of Public Health is one of great diversity from state to state and that a uniform national policy on this subject is neither practicable nor advisable, given the vastly differing conditions from state to state,” contended the plea filed by the Federation of Private Hospitals and Nursing Homes Associations of India.

Under Article 252(1) of the Constitution, Parliament enacted the Clinical Establishments (Registration and Regulation) Act, 2010 with the object of providing for registration and regulation of clinical establishments with a view to prescribe minimum standards of facilities and services which may be provided by them.

The plea, filed through advocate Zulfiker Ali P.S., said that none of the provisions of the 2010 Act deal with the charges/rates of clinical establishments or confer power on the Central government to frame rules in relation to the rates that a hospital or nursing home may charge for procedures and services.

“There are a lot of factors having local implications to be taken into consideration while fixing rates for medical procedures and services, and therefore, there cannot be a uniform rate across the board,” it added.

By imposing a uniform fee structure, the impugned rule risks undermining innovation, quality improvement efforts, and the ability of medical professionals to provide tailored treatments to their patients, the plea further contended.

As per the causelist published on the website of the apex, the matter is coming up for hearing before a bench led by CJI D.Y. Chandrachud and comprising Justices J.B. Pardiwala and Manoj Misra on Tuesday (August 20).