Capping Covid-19 treatment rates: Maharashtra government to hold discussions with IMA to ‘resolve grievances’ of doctors, hospitals

The Maharashtra government on Tuesday agreed to hold discussions with representatives of the state branch of the Indian Medical Association (IMA) to try to amicably

The Maharashtra government on Tuesday agreed to hold discussions with representatives of the state branch of the Indian Medical Association (IMA) to try to amicably resolve the grievances over capping the rates for treatment of Covid-19 as well as non-Covid patients at private hospitals.

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During the course of the hearing of a petition filed by IMA, the bench of justice Nitin Jamdar and justice Milind Jadhav opined that an attempt should be made to resolve the issues involved in the petition at a high-level meeting with government officials, considering the fact that the petitioner body represents a large number of doctors.

Advocate general Ashutosh Kumbhakoni assured the court that some senior government officials will sit across the table with IMA representatives and try to resolve the matter amicably.

IMA moved the HC through advocate Nahush Shah, challenging three notifications issued by the Maharashtra government on April 30, May 21 and August 31, directing all healthcare providers to provide treatment and procedures Covid-19 as well as non-Covid patients at prescribed rates.

It has contended that the Maharashtra government’s actions are “excessively harsh and oppressive and are likely to have a chilling effect on the healthcare system of the state.”

The petition states that apart from the fact that capping of rates of treatment was beyond the statutory power of the state government, the rates fixed under the notifications that are being challenged are highly arbitrary.

“No scientific basis or analysis seems to have been conducted in arriving at these price restrictions and the periodic extension of theses notifications, now till November 30, has placed healthcare providers in a financially precarious position, such that a majority of them have reached a point where it would no longer be financially viable to continue operations,” the petition stated.

“The price stipulation to treat Covid-19 patients is highly discounted and does not cover even the cost incurred on treating the patients, making the operation of the hospital illusory beyond a point,” said the petition, while explaining the effect of the May 21 notification. The petition added that the notification not only prescribed cap on 80% of all beds in hospitals and on the rates for procedures and essentials, but sought to regulate the doctors’ fee as well.

IMA has, in its petition, also taken strong objection to the fact that while the government chose to provide restrictions on healthcare providers and doctors, it has not taken upon itself to subsidise any part of the input costs the hospitals had to incur, by either providing free PPEs or oxygen supply or the like, or even tax breaks on essential medical equipment.

The decisions contained in the notifications was not “well thought out and in fact appears to be a populist appeasement measure taken for oblique motives and without considering the ground realities of the difficulties foisted upon healthcare providers and doctors,” the petition stated.

It added that Delhi has also capped prices, but the exercise in the national capital has been conducted in close consultation with hospitals and therefore, the prices fixed there are considerably higher than that those prescribed by the Maharashtra government.

Advocate Nahush Shah said the petition is now posted for further hearing on October 20.