- CCI closed its probe into Delhi hospitals' pricing practices with no abuse found
- The Director General's claims of dominance and overpricing from 2015-2018 were rejected by the Commission
- CCI ruled defining each hospital as a separate market ignored competitive healthcare dynamics in Delhi
The Competition Commission of India (CCI) has closed a long-running probe into pricing practices of private hospitals in Delhi, ruling that no contravention of abuse of dominance provisions was made out under the Competition Act. In a series of final orders covering 12 super-specialty hospitals, the Commission rejected findings of the Director General (DG) that had earlier flagged alleged overpricing of medical services and products sold to in-patients.
The DG had concluded that hospitals operated as dominant entities in a narrowly defined market of in-patient services and engaged in "aftermarket abuse" by charging high prices for room rents, diagnostics, devices, consumables and medicines between 2015 and 2018. It had also flagged that most hospitals required admitted patients to purchase products from in-house pharmacies, limiting choice.
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However, the Commission disagreed with this approach. It held that defining each hospital as a separate relevant market was flawed and did not adequately reflect competitive dynamics across Delhi's healthcare sector. Several hospitals had argued that patients exercise choice at the stage of admission, comparing costs, facilities and doctors, which constrains pricing.
The CCI also questioned the DG's pricing analysis, noting that comparisons with standalone diagnostic labs or hotels for room rents did not account for differences in infrastructure, quality, and round-the-clock medical care. Hospitals had maintained that services are delivered as a bundled offering and cannot be assessed through individual price components.
On medicines and consumables, the Commission noted the absence of a regulatory framework requiring hospitals to pass on procurement-level pricing to patients, provided items are sold within maximum retail price limits set under existing law.
The orders also referred to the Supreme Court's March 2025 ruling in Siddharth Dalmia vs Union of India, which held that regulation of pricing practices in private hospitals is largely a policy matter for governments rather than adjudicatory bodies.
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The case traces back to a 2015 complaint alleging inflated pricing of syringes at Max Patparganj. While collusion allegations were dismissed early, the probe expanded to 12 hospitals across Delhi, examining broader pricing practices for in-patient care before being split into separate cases and now closed.
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