A Parliamentary panel has recommended a series of measures to make private healthcare more affordable, including an immediate legal mechanism to cap hospital room charges and greater transparency in hospital billing.
The panel has recommended that private hospitals publish their tariffs before admitting patients. It has also proposed a fast-track ombudsman mechanism to audit excessive billing and resolve disputes between hospitals and insurers.
In a significant recommendation on GST, the panel has called for healthcare services to be moved from the current “GST exempt” regime to zero-rated GST at 0%. This would allow hospitals to claim input tax credit on capital expenditure, including medical equipment and infrastructure.
The panel has also proposed using medical tourism to cross-subsidise healthcare for poorer domestic patients. It said corporate hospital chains benefiting from foreign investment and land-related subsidies should utilise revenues from foreign patients to support treatment for economically weaker domestic patients.
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On pharmaceuticals, the panel has called for multi-sectoral audits to identify and cap unjustified trade margins on cancer and other life-saving drugs. It has also recommended a strict ban on over-the-counter sale of antibiotics to tackle antimicrobial resistance.
The panel has further recommended banning 19 antibiotics in livestock and seafood processing to prevent antimicrobial resistance from entering the human food chain.
To expand healthcare infrastructure, the panel has proposed a dedicated Healthcare Capital Expenditure Fund, along with soft loans and tax holidays to encourage private hospitals to set up facilities in rural areas.
It has also urged states to create a specialised hospital administration cadre, allowing senior doctors to focus on clinical care rather than administrative responsibilities.
For government health insurance, the panel has recommended a strict 30-day window for settling claims, with penal interest payable to hospitals for delayed payments.
For the “missing middle”, it has proposed a voluntary standardised insurance plan costing Rs 4,000–Rs 6,000 annually, covering around 40 crore informal-sector workers and including OPD and diagnostic expenses.
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