- Shares of Max Healthcare and Apollo Hospitals fell following panel recommendations on pricing and billing
- Panel proposed legal cap on hospital room charges and mandatory tariff publication before admission
- A fast-track ombudsman mechanism was recommended to address excessive billing disputes swiftly
Shares of Max Healthcare Institute and Apollo Hospitals Enterprise fell on Wednesday, with Max Healthcare down 2.13% intraday and Apollo Hospitals falling 1.68%, as investors assessed the impact of a parliamentary panel's recommendations on private healthcare pricing and billing.
The selling came after the panel proposed an immediate legal mechanism to cap hospital room charges and asked private hospitals to publish tariffs before admitting patients. It also recommended a fast-track ombudsman mechanism to examine excessive billing and resolve disputes between hospitals and insurers.
The recommendations put hospital pricing, billing practices and affordability back in focus for listed hospital chains, particularly those with large private healthcare operations.
The panel has proposed greater transparency before patients are admitted, with hospitals required to publish tariffs in advance. The proposed ombudsman mechanism would also provide a route for patients and insurers to challenge excessive bills.
The panel has also recommended changing the GST treatment of healthcare services from the current exempt regime to zero-rated GST. This could allow hospitals to claim input tax credit on capital expenditure such as medical equipment and infrastructure.
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