KDMC suspends licence of hospital for overcharging

Ten days after serving a show cause notice to Shree Devi Hospital, the Kalyan Dombivli Municipal Corporation (KDMC) has suspended the hospital’s licence till August 31 on grounds that the hospital failed to explain the irregularities in treating Covid-19 patients as pointed out by the civic body. KDMC also said the hospital overcharged patients without following the rate mentioned by the state government.

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Earlier on August 10, KDMC had served notice to the hospital after the civic flying squad, which is appointed to look after complaints regarding irregularities in Covid hospitals, pointed out irregularities. The civic body said the hospital has overcharged ₹1.6 lakh from patients and asked the hospital authorities to refund the same.

“The license of the hospital has been cancelled till the amount is refunded or till August 31. There has been several complaints based on which a show cause notice was served, but since there was no explanation from the hospital we have cancelled the licence,” said Sunil Pawar, additional commissioner, KDMC.

The civic body also claimed that the hospital has been treating Covid patients since July without informing the civic body.

“The hospital has overcharged patients, did not maintained 80:20 ratio of Covid and non-Covid patients, and also did not cooperate during the audit of bills and documents. The license has been revoked under the Bombay Nursing Homes Registration. Act,1949,”added Pawar.

However, the 100-bed hospital, which currently has 30 patients, will be allowed to treat them and haemodialysis patients despite the suspension of licence. No new patients can be admitted to the hospital. The civic body will also appoint a medical officer to keep a watch on the hospital.

Bala Shetty, owner of the hospital, said, “We have already refunded the amount mentioned by the civic body to the patients on Friday evening. We had asked the civic body to give us 10-days’ time to refund the money, then why are they cancelling the license? Hospitals are already working under a lot of pressure, and in such situation, instead of getting support, we are being targeted.”

Earlier in July, the civic body suspended the license of A and G Hospital for overcharging patients to the tune of ₹9.36 lakh.